Motif Bio renegotiates convertible note terms

Clinical stage biopharmaceutical company specialising in developing novel antibiotics, Motif Bio, announced an update on Thursday to REVIVE-1, one of its two Phase 3 clinical trials currently enrolling patients with Acute Bacterial Skin and Skin Structure Infections (ABSSSI).

The AIM-traded firm said patient enrollment for REVIVE-1 has exceeded projections and data readout is now expected in the second quarter of 2017, rather than the second half of 2017, as previously stated.

REVIVE-2 remains on track with data readout continuing to be expected in the second half of 2017, the board said.

In a separate announcement on Thursday, Motif Bio said it has re-negotiated the terms of the April convertible promissory notes of $1.47m held by Amphion Innovations, and $2.08m by its subsidiary Amphion Innovations US.

“Under the original terms of the CPNs, the noteholders were entitled to convert all of the outstanding principal and interest at $0.2447 at any time following maturity at 31 December 2016,” Motif Bio’s board reported.

“At the maturity date, the company would have accrued $441,185 in interest cost under the CPNs.

“If this interest were fully converted at the conversion price, the company would have been required to issue over 1.8 million ordinary shares with a value in excess of $1.2m based on the company's closing share price and exchange rates on 7 September.”

Instead, the company said it has paid $314,146 in cash, and agreed with the noteholders to issue 409,000 ordinary shares to Amphion in full satisfaction of the interest payments through to maturity date.

Motif Bio also entered into an agreement with Amphion to provide certain corporate services such as investor relations, back office and accounting functions.

Under the terms of the consultancy agreement, which is conditional on the company listing on NASDAQ, Amphion would provide the services for a minimum term of 12 months for a fee of $15,500 per month.