Amphion Innovations: Markets Remain Challenging

8th Jun 2010 07:22

LONDON (Dow Jones)--Amphion Innovations Plc (AMP.LN), a developer of companies in the medical and technology sectors, announced Tuesday that markets remain challenging, particularly the sourcing of capital for early stage technology companies. MAIN FACTS: -Amphion has responded through generating income from its IP licensing program and seeing alternative routes for raising capital. -The company entered the year with renewed confidence in the strength of our intellectual property (IP) licensing program, following the re-issuance of the 502 patent in August of last year, after two years of review by the U.S. Patent Office. -Completing the analysis of infringement contentions on the 502 patent has taken longer than anticipated and, as result, the company was only able to file its first new claims in February. -However, it continues to have confidence in the future potential of the program and are now beginning to see increased activity. -It expects that this part of its plan should be back on track very soon and continues to expect that its basic assumptions in its plan for the year as a whole remain sound. -Through the close of last year its primary capital raising activity was focused on the issuance of the 7% Convertible Promissory Note or CPN, which was targeted to raise circa GBP7 million. -The company has placed GBP5.8 million, leaving GBP1.2 million available for subscription. -This funding gap in its operating plan is close to $2 million at year-end exchange rates and in recent months we have looked at alternative sources of capital. -The company is currently actively exploring a debt facility which we believe could provide at least $2 million and possibly up to $5 million of additional capital, either as a substitute or as a complement to the remaining issuance of the CPN. -Provided its IP program continues to make progress, Amphion's need for capital at the parent company level will remain relatively small and it expects to be able to cover most operating costs from internally generated funds in 2010, just as we did in 2009. -Richard Mansell-Jones is not standing for re-election and as a result will step down as Chairman. -In due course the Board intends to appoint a non-Executive Chairman, in the meantime Richard C.E.Morgan, Chief Executive Officer, will be chairman of the company until that appointment is made. -Shares closed Monday at 13 pence. -By Zechariah Hemans, Dow Jones Newswires; 44-20-7842-9411; [email protected] (END) Dow Jones Newswires June 08, 2010 02:22 ET (06:22 GMT)