Amphion Innovations : Sale of Partner Company Shares

Sale of Partner Company Shares

London and New York, 9 August 2019 - Amphion Innovations plc (AIM: AMP), the developer of medical, life science, and technology businesses, announces that 100,000 shares in Partner Company, Polarean Imaging plc ('Polarean') have been sold ('Sale') for partial repayment of the loan facility (the 'Facility') originally announced on 5 June 2014 and most recently amended as announced on 1 April 2019 ('Amendment Agreement').

Following this Sale, Amphion holds 18,272,523 ordinary shares of Polarean, representing 15.97% of the issued share capital. Amphion's percentage holding changed from 18.1% to 16.05% following a placement of 11,666,667 ordinary shares on 22 July and an exercise of warrants by Mr. John Sudol on 24 July 2019.

The Sale generated total proceeds of approximately US $29,000, which will be applied to reduce the loan balance under the Facility. The loan amount under the Facility continues to be secured by the pledge of 18,272,523 ordinary shares of Polarean. Since the announcement on 27 June 2019, the significant majority of the remaining 3.9 million pledged Motif Bio plc shares were sold to reduce the loan balance under the Facility.

The loan balance outstanding pursuant to the Facility at 17 July 2019 after the sale of Motif shares, but prior to Polarean sales was approximately US $2.8 million (excluding the lender's share of the pledged share price appreciation which is currently approximately US $172,500). The current value of the remaining shares pledged as security for the outstanding loan is approximately US $5.3 million. The outstanding loan is repayable on 30 September 2019. Amphion has transferred the legal title to, but retains the beneficial interest in, the total pledged shares in Polarean.

Amphion is working hard to try and replace or amend the Facility to extend the repayment date past 30 September 2019 to ensure the Company does not have to sell more shares than entirely necessary. We are excited by and steadfastly believe in the future prospects of Polarean and its important technology.

Amphion remains highly cash constrained and continues to consider both its short term and medium term financing options and work with its debt providers. Further to the Company's announcement on 27 June 2019, the Company's shares remaining suspended from trading on AIM.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 ('MAR').

For further information please contact

Amphion InnovationsCharlie Morgan
+1 212 210 6224

Panmure Gordon Limited (Nominated Adviser and Corporate Broker)
Freddy Crossley / Emma Earl (Corporate Finance)
Charles Leigh-Pemberton (Corporate Broking)
+44 (0)20 7886 2500

SP Angel Corporate Finance LLP (Joint Corporate Broker) David Hignell (Corporate Finance)
Rob Rees (Corporate Broking)
+44 (0)20 3470 0470

Walbrook PR Anna Dunphy / Paul McManus
+44 (0)20 7933 8780

About Amphion Innovations plc
Amphion Innovations is a developer of medical, life science and technology businesses.

We use our extensive experience in company building to invest and build shareholder value in high growth companies in the US and UK. Amphion has significant shareholding in a small number of Partner Companies developing proven technologies targeting substantial commercial marketplaces. The Amphion model has been refined to optimise the commercialisation of patents and other intellectual property within the Partner Companies.