Amphion Innovations shares slip as it reduces its stake in partner Motif Bio

Courtney Goldsmith
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Motif Bio develops antibiotics designed to beat life-threatening infections (Source: Getty)

Shares in Amphion Innovations slipped more than seven per cent today after it sold a chunk of its partner company Motif Bio.

The Aim-listed firm reduced its stake in Motif Bio, a clinical stage biopharmaceutical company, with the sale of 1.7m shares. The company now owns around 41.5m ordinary shares, or a 15.8 per cent stake.

Shares in Amphion, which develops medical, life science and technology businesses, fell 7.69 per cent to 1.5p in afternoon trading. Shares in London-listed Motif Bio were down just 0.94 per cent at 26.5p.

Read more: Motif Bio raises £22m for new drug

The share sale was made in partial repayment to the loan facility it had previously announced in June.

Amphion had drawn down $6.15m (£4.76m) under the facility up to June 2017, using certain assets as collateral. It used the capital to support the development of its seven partner companies, which will in turn enhance the asset value of the company.

If not modified, the facility will be due for final payment by December 2017, but the firm said discussions over rescheduling the remaining amounts due are continuing with the lender.

"Our confidence in the future of Motif Bio remains high and we will endeavour to minimise the further reduction of the size of our holding," the firm said.

Read more: Government mulls plans to make UK a life sciences world leader

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