(Alliance News) - Advanced Oncotherapy PLC on Monday announced a prospective recapitalisation and funding plan to raise up to GBP110 million.
Advanced Oncotherapy is a London-based provider of proton therapy for cancer treatment.
The prospective plan comprises three elements: a debt to equity conversion raising up to GBP37.4 million; the company receiving a GBP10 million new interest-bearing secured loan; and an equity fundraising for up to GBP73.5 million.
Advanced Oncotherapy said that the plan is still at an early stage. It noted that it is subject to, amongst other things, a number of conditions being satisfied and various documentation being negotiated, agreed and entered into.
It added that whilst it is "hopeful of a satisfactory outcome", certain elements of its plan, in particular the equity fundraising, remain at an early stage and there can be no certainty that it will proceed.
On June 30, Advanced Oncotherapy said that additional funding of GBP8 million, which it had been working to secure, was no longer a viable financing option. It then requested its shares to be suspended.
Advanced Oncotherapy shares were then suspended and remain suspended pending clarification of its financial position. They were last traded on June 29 at 1.95 pence each in London.
Since June's announcement, Advanced Oncotherapy said it has entered into discussions with a number of investors to provide bridge financing to alleviate these immediate financing needs.
"In the absence of any additional financing being available in the immediate term, the company would need to take steps to preserve and maximise value for its creditors, including the possible appointment of an administrator," it said.
The company added that its 2022 result are unable to be published currently, so its shares will remain suspended from trading on AIM.
"The prospective recapitalisation plan is an important step for the company to outline how it plans to address its financial challenges. The company is hopeful it will unlock the company's prospects and ensure that Advanced Oncotherapy has strong foundations to progress its strategy of democratising proton therapy," Advanced Oncotherapy said.
It added that it remains in formal sales discussions, but said that there is no certainty that an offer will be made.
By Sophie Rose, Alliance News reporter
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