logo-loader
viewMotif Bio PLC

Motif Bio a step closer to cash shell status after agreement with its main lender

The company's previously announced agreement in principle with Hercules Capital has now been sealed

Motif Bio PLC -

Motif Bio PLC (LON:MTFB) is a step closer to becoming a cash shell after coming to an arrangement with Hercules Capital, its senior secured lender.

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.

Quick facts: Motif Bio PLC

Price: 0.07 GBX

AIM:MTFB
Market: AIM
Market Cap: £339.74 k
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

OptiBiotix Health secures significant exclusive licence agreement for OptiBiome

OptiBiotix Health PLC's (LON:OPTI) Stephen O'Hara chats to Proactive's Andrew Scott after signing an exclusive licence agreement for its OptiBiome weight loss ingredient with Australian firm OptiPharm Pty Ltd. OptiPharm owns Optislim, the number one weight management brand in Australia, which...

2 hours, 37 minutes ago

2 min read