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Anyone heard of anything happening or is this a write off? K
Noticed Hitachi are taking over Thales for 1.6billion euros a company we once linked with.
"Is that light we can see at the end of tunnel. Excuse the pun" Patients, Rodney, Patients!
If the plan works and LIGHT starts selling, I'd have thought that any dilution caused by the rescue package could be rendered insignificant by the increases in the sp over time.
Is that light we can see at the end of tunnel. Excuse the pun
1.25% per month over 4 months is 6%.
A commitment of sorts to $80m - positive.
The term sheet being with a single investor - positive.
The fact that the $80m would be part debt - positive.
The fact that the investor involved in the bridging loan (? unclear) has loaned a little bit immediately - positive.
But dear God AVO, get it done. These discussions are not new, they’ve been going on for many many months.
And it’s clear other radiotherapy companies are still in discussions only to pick clean the carcass if it goes into administration.
£200,000 at 1.25% interest per month from new investor. They must be confident of the Phoenix rising
Yes,at long last some news but basically nothing much change as regards to a legal binding agreement.....from experience this kind of life saving deal takes good time so aspects can be clear and agreed and it's obviously no different here......
As such we can only still have hopes to salvage our investment here albeit not in the near term ,
HOPEFULLY.
On reviewing again the news, interesting this is announced in dollars with the investor providing up to $80 million. Any ideas who this could be?
At last some news, clearly the company must be at an advanced stage of negotiations. One can only assume that the Nerano article published earlier in October is one part of converting their substantial loan to equity.
These transactions are clearly complicated and have to be concluded in sequence.
I am more hopeful we should hear more progress and a General Meeting being called. Sufficient financing to get to first patient treatment in 2024 and completion of licensing will be a huge milestone and as such with substantially reduced debt the shares whilst diluted could do very well. GLA
Update
I hope the lack of news at the moment isn’t related to the Israeli-Palestine conflict. I can imagine that might give a lender reason to pause for a moment in case there are significant impacts on financial markets. That’d be typical AVO - ready to go and then the rug is pulled at the last moment. I hope not.
Max19.
I share your hope but I sometimes despair of the Bod. I wonder what planet they're on
Hey meldrew,
Your latest post could be copy and paste so many times before many times in last few years....seems like some things never change,here for sure unfortunately.....:)
All we got is hopes.
The BoD are once more behind schedule in one of their many promised deadlines they've failed to meet over the years. They promised us a report in early October. Where is it? I would try to contact them to ask but that would be a waste of my time. They are in the habit of never answering awkward questions.
AVO have a brilliant product that could and should give them a wonderful future but is held back by the consistently woeful performance of the BoD. They may be excellent scientists but they're terrible business managers.
“Seamus Mulligan’s Nerano Pharma is poised to take a sizeable stake in AIM-listed Advanced Oncotherapy as part of a complex financial restructuring plan.
Trading in Advanced Oncotherapy shares has been suspended since July.
Nerano is a long-term backer of the company, which is developing a proton-based therapy for cancer cells. The Irish company has advanced loans of £23.8 million (€27.5 million) to Advanced. With rolled-up interest, the total sum due to Nerano is £27.8 million (€32.1 million), most of which is overdue.
Under the restructuring plan, Mulligan’s company and other lenders will agree to a debt for equity swap. Mulligan, through Nerano and Barrymore Investments, already controls 5.6 per cent of the equity in Advanced.
According to a company statement, the debt conversion may result in Mulligan’s company controlling over 30 per cent of Advanced, a level that would trigger a mandatory offer for the company under the takeover code. In such a scenario, Advanced is likely to seek a waiver from the takeover panel from the mandatory bid requirement.
Mulligan, a former Elan executive, is one of the country’s most successful entrepreneurs. He made over $500 million when he sold Adapt Pharma, a maker of opioid overdose treatment Narcan to Emergent BioSolutions in 2018.
Advanced Oncotherapy use protons rather than x-rays to maximise the destructive effect of radiation on tumours while minimising damage to the patient’s healthy tissues. Its technologies are based on research conducted at the Cern laboratory in Switzerland. The company was targeting in-patient treatments this year.
However, the company said in July that it urgently required funds. Aside from the debt to equity swap, the company plans to raise £61 million in fresh equity.
It is negotiating bridging loan finance with a number of investors, which it hopes to conclude shortly.
Separately, Nerano recently led a $5.3 million for Avectas, a Maynooth-based cell therapy company.”
No worries Kenj, at least it got us revved up a bit. Think we are all in need of some news on this one.
Ac, your maths looks fine. However it implicitly assumes that Seamus Mulligan is being given 25p shares (as now) and that there are no changes to the nominal share price that would see existing shares split (i.e, “x for 1”).
It seems that what’s happening at the moment is a first stage in the recap plan - that all the debt due to have been repaid already is being converted into shares - which removes the immediate pressure but doesn’t provide working capital. The bridging loan will help pay back-salaries and outstanding invoices but may or may not provide a meaningful amount of working capital. And then the proposed full equity raise - which we’ve been led to believe *won’t* be for 25p nominal price shares - will raise £60m+ but at the cost of way more dilution. At that point, Mulligan’s share would reduce significantly from the 30%. As would our holdings.
Sorry for posting out of date links.
The date on the first was very obscure, and I didn't pay much attention to the second.
I had tried to view the FT article, but like others could not access it, probably as I only have a basic account.
Anyone want to review the following maths?
- In these workings, assume there are 100 shares (or 100 equal 'tranches' of shares).
- Mulligan currently owns about 6, and will receive x new shares after the debt-for-equity swap.
His holding is then (6 + x).
- The number of new shares will then be (100 + x). Mulligan will own 30%, or 0.3, of the new total.
- So (6 + x) = 0.3 * (100 + x) [ i.e. 30% of the enlarged capital ]
=> (6 + x) = 30 + (0.3 * x)
=> 0.7 * x = 24
=> x = 240 / 7 = 34 (roughly)
- So shares roughly go from 100 to 134.
That's an increase of about one third. Or - existing shares (inclduing our own) will be three quarters (100/134) their previous value once the total is enlarged.
If that's the case, it's not total wipeout.
I would say it's not too bad a deal for retail investors IF the plus side is that company remains afloat.
Any thoughts?
Actually, if he is adding 24.4% to take a total of 30% that would be
32.1/0.244 = 131.5M euros x 0.86 = £113M
Seamus's 30% values the company at £92M. FWIW.
In The Times 7th and Sunday Times 8th, but need sub to read it. Headlines..
Oct 7, 2023 · Seamus Mulligan’s Nerano Pharma is poised to take a sizeable stake in AIM-listed Advanced Oncotherapy as part of a complex financial restructuring plan.
Oct 8, 2023 · Seamus Mulligan’s Nerano Poised To Exchange €32.1m In Loans For A 30% Stake In Advanced Oncotherapy
Currently holds 5.6%
29 June 2020
ADVANCED ONCOTHERAPY PLC
("Advanced Oncotherapy" or the "Company")
Advanced Oncotherapy announces strategic funding partnership and debt facility
Agreements provide access to up to approximately £42 million of funding
Strategic €20 million funding partnership with VDL Groep expanding close partnership with existing supplier, VDL ETG Precision
Nerano Pharma to provide $30 million debt facility
Advanced Oncotherapy will use facilities to further develop and advance manufacturing of additional LIGHT systems to address unmet medical need
Advanced Oncotherapy (AIM: AVO), the developer of next-generation proton therapy systems for cancer treatment, today announces that it has entered into two financing agreements, providing the Company access to up to approximately £42 million of additional funding to further the development of the LIGHT system and advance the manufacturing of up to 30 LIGHT systems.
Your quite right meldrew