- Antibiotic developer Motif Bio said it would need to raise capital after it made an early debt repayment to Hercules Capital.

The company said it would make an immediate early repayment of $7m and a further repayment of $0.5m on the earlier of 90 days, being 18 May 2019, or receipt of funds from an equity raise of $2m or greater.

There would be a three-month interest-only period on the remaining loan, and Hercules had waived any applicable prepayment charges.

As a result, future interest and amortisation payments would be substantially lower than before.

'Though the company remains in compliance with the terms of its loan agreement, it has agreed to this amendment in order to avoid unilateral action by Hercules based upon any position that Hercules may take that the company is in default,' Motif Bio said.

Following the $7m repayment, Motif Bio said it would have cash of around $3m and $7.7m of outstanding debt drawn from the Hercules loan facility.

'Following this amendment, the company intends to manage the funds available to it aggressively and will need to raise capital in the near term,' the company said.

At 8:32am: [LON:MTFB] Motif Bio Plc Ord 1p share price was -1.97p at 8.15p

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