LONDON (Alliance News) - Advanced Oncotherapy PLC said Thursday it has secured GBP24 million to allow it to provide vendor financing for the installation of its first LIGHT proton therapy machine at Harley Street, London.
Advanced Oncotherapy has agreed to provide a vendor loan as part of the funding for the clinic, the London Proton Therapy Centre.
The financing for that loan has been agreed with a fund advised by pan-European private capital fund manager Metric Capital Partners LLP.
Advanced Oncotherapy will pay Metric Capital cash interest of 250 basis points per year above three-month LIBOR, payable quarterly, and payment in kind interest of 850 basis points, payable at maturity or convertible into Advanced Oncotherapy shares at 10 pence each.
Additionally, Advanced Oncotherapy has agreed to issue Metric Capital with warrants over 14.5 million shares exercisable at 16p each.
Shares in Advanced Oncotherapy were up 4.8% at 7.33 pence Thursday morning.
Metric Capital requires guarantees from some directors and shareholders, and as a result Chief Executive Officer Michael Sinclair, Non-Executive Michael Bradfield and 19% shareholder Brahma AG, along with two other guarantors, have agreed to provide guarantees for a total of GBP2.5 million.
"We are delighted to have secured this financing partnership with Metric Capital. Vendor financing has become standard practice in the Proton Therapy Sector and this forms an essential part of our financial strategy, giving us greater confidence to secure new purchase orders and enhancing our returns. I am very pleased to have Metric Capital as our financing partner of choice and their support after extensive due diligence is a great endorsement of our technology and business plan," said Chief Operating Officer and Chief Financial Officer Nicolas Serandour in a statement.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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