An unnamed “leading US institutional investor” is paying 31p for each of the 8.9mln shares, raking in a total of US$3.7mln for Amphion.
Amphion has been a long-term investor in Motif Bio and still owns a 9.5% stake in the company even after today’s sale.
The AIM-quoted investment group will use the money to repay a chunk of a loan it took out four years ago, like it did when it sold a smaller slug of Motif shares last September.
Amphion will pre-pay three months’ worth of loan repayments to the lender. That will leave the remaining balance of the loan at US$3.7mln, which will be repaid in four monthly instalments beginning in September.
The company added that it “recognises the intrinsic value of its Motif Bio holding and is eager to retain as much of its holding as possible”.
In a separate announcement, Motif Bio said it noted the share sale.