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Always a good idea to have company websites in several languages. The interesting thing is that the second language is Chinese rather than Spanish, Arabic or another Asian language. Possibility of investment from China?
Top RHS home page of website (can't say I have noticed this before)
It's over 4 months since it was announced that AVO was in discussions with potential buyers of AVO, yet there has been no indication whatsoever of any progress on that front. I feel that the prolonged silence indicates either a general lack of interest on the part of potential buyers or a lack of commitment by AVO to selling.
Assuming that going into administration would be the least favoured option, that suggests to me that the recapitalisation plan might still be alive and kicking, if not yet complete, and there might be hope for us yet.
Update on Formal Sale Process
The Company announced on 18 April 2023 the commencement of a strategic review and formal sale process under the Takeover Code (the "Formal Sale Process").
Whilst the Prospective Recapitalisation Plan has been the Company's primary focus, the Company remains in discussions under the Formal Sale Process with strategic players in the radiotherapy sector.
There can be no certainty that any offer will be made for the Company, or even proposed, or as to the terms of any proposal or offer that may be made.
Therefore, no news is GOOD news!
We must have at least one interested party as the dispensation is for 28 days and " will not be subject to the 28-day deadline referred to in Rule 2.6(a), for so long as it is participating in the formal sale process."
Hi Curiousinvester6. Thanks for putting me right. I'd let the dispensation pass me by.
I'll just have to be patient and hope for the best
Hi Meldrew I do not believe any notification is required by an interested party. As announced on the 18th April 2023 please note the following:
The Takeover Panel has granted a dispensation from the requirements of Rules 2.4(b) and 2.6(a) of the Code such that any interested party participating in the formal sale process will not be required to be publicly identified (subject to note 3 to Rule 2.2 of the Code) and will not be subject to the 28-day deadline referred to in Rule 2.6(a), for so long as it is participating in the formal sale process.
I therefore believe all options are still on the table and hopefully the best one for all shareholders of which the directors are major holders will complete successfully
I should have added that AVO has been on the disclosure table as the offeree every day since suspending its shares from trading but, so far, there has been no offeror disclosed.
There are other companies listed as offerees on the disclosure table and they all have named companies disclosed as their offerors. AVO is the only exception. That suggests that any negotiations with AVO, if they exist, have barely started and must be far from having come a long way. If they had, they should surely have been disclosed by now under the rules of the takeover panel.
It's only my opinion but I think that the only show left on the road is the successful completion of the rescue plan. I remain optimistic.
I believe that if there are serious discussions going on between AVO (the offerree) and another company(the offeror) they should be reported to the takeover panel, and offeror named in the disclosure table published by the takeover panel. That has not happened.
Meldrew, I feel you may be premature! It’s quite possible that sale negotiations are still going on - certainly, these must have come a long way if they’re ongoing, but nothing’s certain until the deal is signed. And the recapitalisation plan may be having the i’s dotted as we speak. Both may still come to naught, but the length of time since we heard anything gives me hope that going into administration is now the least likely outcome.
There’s been no cash available since end-May yet here we are - still clinging on. Staff’s loyalties will have been tested as they can’t have been paid for several months, so I can understand if there have been resignations, but hopefully most are still on board.
I do think the recapitalisation plan will have focused the minds of potential purchasers, who will realise they can’t put in a lowball offer (this assumes they believe the money can be raised per the plan).
The possibilities that face us are :
1. the plan as described being successfully implemented
2. a successful takeover bid by another company.
3. a total failure to achieve either of the above, leading to AVO going into administration
I think that we would know by now if either 2 or 3 were likely to happen.
I really hoped we hear something soon, the question is - is no news good news? It must be a very time consuming and complicated set of events and I am getting a little concerned especially with the companies ability to retain staff.
Yes I’m sure you’re right, Meldrew. Otherwise the plan would risk falling apart at one stage or another at the EGM.
Website has been updated to explain the benefits of FLASH - less radiation
IWTO. I agree with you, although I believe that everything you mention, including the order in which everything takes effect, will have been agreed with all parties and decided upon by the BOD before the EGM. I believe that all the EGM will be required to do will be to vote yes or no to the whole package rather than vote on each part separately.
I see the consolidation, sub-division and issue of new shares all being part of the “single matter” (ie recapitalisation) to be agreed at the EGM. They are separate steps, each to be voted on I think but forming a coherent whole. I’m not sure it matters what order they come in, does it, as long as each step follows on consistently (ie using the right number of shares, nominal value and issue price) from the values determined in the previous step?
I suspect that the consolidation will come first. That will increase the share price. That will be followed by the issue of new shares with their price(s) based on the new, consolidated, share price. The overall values of the holdings of existing shareholders should remain unchanged, until the markets open after the plan is complete.
"I imagine AVO will only want to call one EGM on one matter"
They need to subdivide (multiply the number of shares) in order to issue new shares, and also wish to consolidate (divide the number of shares) as there are there are too many shares.
It will be interesting to see how they word the motions.
I still think that the main stumbling block is paying down the old debt with shares.
I suspect it is no coincidence that this is the first mentioned task in the plan, and the book build is placed third on the list.
"The prospective plan comprises three elements: (i) a debt to equity conversion (the "Debt to Equity Swap"); (ii) the Company receiving a new interest-bearing secured loan; and (iii) an equity fundraising (the "Equity Fundraising") (together the "Prospective Recapitalisation Plan")."
Three weeks on Monday since we were told of the plan. The cash ran out end-May, so I can only assume that salaries and bills haven’t been paid for June & July, awaiting bridging finance. So that’s £3-4m just to cover that period, and the same again through to end-September (ie EGM and implementation). I assume the potential lender there wants security that the company will be able to repay, so they’ll want to see either an offer for AVO or a well-developed book-build for the equity raise. So could be a little while yet.
I imagine AVO will only want to call one EGM on one matter - either the Recapitalisation Plan or an offer to buy them. So it’s possible that the Recapitalisation Plan is in reasonable order but potential buyers are still working things through. Just speculating whilst we wait……
Recent, unplublished results, show FLASH spares healthy tissue and is even more destructive to tumours than expected
Great to watch and just reinforces why AVO and LIGHT must succeed, the Christie Foundation Hospital highlighted while pioneering and successful required a significant larger footprint and much more shielding than AVO’s LIGHT. The Linac design of LIGHT generates lower levels of secondary radiation compared to cyclotron systems such as the Christie reducing the need for extensive shielding and therefore huge cost savings . As we know AVO’s LIGHT is designed therefore to be located in inner city areas occupying as planned within the basement area of 141-143 Harley Street which has just 15,000 sqft area in total.
AVO with CERN are clearly pioneers of the next generation of disruptive technology with LIGHT making proton beam therapy more accessible and cheaper for future generations and builds on their success with traditional cyclotron systems. Hospitals like the Christie will continue to play a major part and hopefully with AVO & CERN more proton beam therapy centres will be affordable and accessible to a wider population.
Https://www.bbc.co.uk/iplayer/episode/m001pbj5/click-a-collision-of-science-and-fiction