Amniotics secures continued short-term capital needs by extending loan agreement and continued services under service agreement
Amniotics AB (publ) (”Amniotics” or the ”Company”) today announces that Amniotics has agreed on an additional extension of the outstanding loan of approximately SEK 3.3 million from Buntel AB (”Buntel”) until June 30, 2024. Furthermore, Magle Chemoswed AB (”Magle”), has informed Amniotics that, despite Magle’s announcement in a press release on 20 May 2024 that Magle will not complete the public offer for Amniotics, intends to continue to call off services under the service agreement entered into by the parties on March 21, 2024 also during June 2024. The extension of the loan agreement and the continued cooperation with Magle are expected to secure Amniotic’s short-term capital needs until the end of June 2024. In accordance with what has been communicated previously, the Company’s management and board of directors continue to work actively to identify and evaluate various possible solutions to ensure the Company’s continued financing needs in various ways. However, no solution has so far been secured and the board of directors continues to see great difficulties in securing the Company’s financing needs in the long term.
On May 20, 2024, Magle announced that Magle will not complete the public offer for Amniotics. Due to the offer not being completed, Amniotics has been forced to take measures to secure the Company’s short-term financing needs, where the Company previously has communicated that financing has only been secured until the end of May 2024.
In light of the above, Amniotics has today reached an agreement with Buntel to further postpone the maturity date of the remaining loan that Amniotics has outstanding from Buntel until June 30, 2024. The loan, which as of today, including accrued interest, amounts to approximately SEK 3.3 million, would otherwise, after the latest extension, have had to be repaid no later than May 31, 2024.
On March 21, 2024, Amniotics announced that that Amniotics had entered into a service agreement with Magle under which Amniotics will provide services to Magle regarding GMP activities and development. The agreement runs for six months, but after 31 May 2024, each party has the right to terminate the agreement prematurely with immediate effect. Amniotics is not guaranteed any revenue under the agreement, but Magle has announced that Magle intends to continue to call off services under the service agreement also during June 2024.
The Company estimates that the extension of the loan agreement and the continued cooperation with Magle, together with available cash and cash equivalents, will secure Amniotics’ short-term capital needs until the end of June 2024. In accordance with what has previously been communicated, the Company’s management and board of directors continue to work actively to identify and evaluate various possible solutions to ensure the Company’s continued financing needs in various ways. However, no solution has so far been secured and the board of directors continues to see great difficulties in securing the Company’s financing needs in the long term.