Motif’s directors are focused on sourcing an appropriate reverse takeover candidate for the company. Once it has officially been designated as a cash shell, which will happen once the agreement with Hercules becomes effective, the company will have six months to execute a reverse takeover, otherwise, its AIM listing will be suspended.
Motif’s US subsidiary, Motif Biosciences Inc has ceased all operations and has engaged Tamarack Associates to facilitate the sale of iclaprim and other assets of Motif Inc.
Hercules Capital, meanwhile, has binned the loan agreement it made with Motif Bio in November 2017 in return for which Motif Inc has granted Hercules a perfected lien over all of its intellectual property.
The terms of the Hercules agreement are effective immediately, except for provisions of a release that relate to the pledge of Motif Bio's interest in Motif Inc, which will become effective no later than 10 May 2020, provided that no voluntary or involuntary bankruptcy filing has occurred concerning Motif Bio or Motif Inc.
Motif is granting Hercules warrants over 121.3mln shares – roughly 25% of Motif’s issued share capital – that will expire on 27 January 2025 if not exercised before then at 0.42p a share.
Several former directors have agreed to take options over shares in lieu of outstanding board fees. In total, options over 1.2mln shares will be granted, with an exercise price of 0.24p per share.