What to do? Sell or avoid? Have been watching this, but any upside to Motif will simply mean AMP selling stake to pay the debt/bills? Will any Motif windfall be squandered? I guess AMP are hoping for a big litigation payday.
This facility seems very expensive $750,000 borrowed today and $881,000 having to be repaid in less than 4 months time and some of it being used to pay back a previous outstanding amount on the drawdown facility.
Tha'ts an apr of 50% near enough.
This is starting to read like a borrower starting to sink into the clutches of a pay day lender.
Read Northland Capital Partners's note on AMPHION INNOVATIONS, out this morning, by visiting https://www.research-tree.com/company/GB00B0DJNP99
"Amphion announced that the Company has agreed terms for the draw-down of an additional tranche of US $1,765,000 (an Additional Draw) under the loan facility as announced on 5 June 2014 (the Facility). Under the terms of the Additional Draw, the interest rate will be 10% with repayments starting on 1 May 2016 and with the final repayment due on 1 February 2017. The Additional Draw provides working capital for Amphion to progress its business pipeline. The company is working towards moving other programmes forward ..."
AMP own c40% of the equity of Motif and have a $3.4m convertible loan into the company, pre today's announced fundraise.
Post the fundraise, they will own 29% of the equity in Motif, which at current prices equates to £42m.
This compares to Amphion's current mkt value of £13m.
They also hold an 11.6% stake in Kromek, (which is listed on AIM KMK.L) or 12.5m shares which is also valued at £5.5m.
There are a further 6 other interesting investments, all of which are due to be monetised over time...
"A number of big floats have been announced already this year. Infrastructure investment business John Laing, ticket-seller Trainline and tool rental company HSS Hire have all spelled out their listing credentials and firmed up plans to IPO. But ..."
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