Member Info for meldrew44

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 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.

It's interesting to see how many holders seem to have little faith in SOS

Damn, I allowed myself to be fooled by a large mid price deal that turned out to be a sell.

Today is the first day in ages when there seems to be no sellers. Is this the start of a new upward trend?

I believe that, if the rescue plan does succeed, every aspect of the plan, including the prospective recapitalisation plan, the consolidation, the subdivision, the loan, the Debt for Equity Swap, the new share price and new nominal price, etc. will be agreed and finalised while the shares are suspended from trading. If those efforts are successful, then, when the suspension of the shares from trading is lifted, the market will be faced with a fait accompli covering the entire package. Only then will the market have its chance to react.

Thanks for your thoughts kenj.

It'll be interesting to see what happens.

I've changed my opinion about the possible amount of the consolidation. I now believe that the target share price might be between 20p to 25p, which would result in a 10 to 13 times reduction in the number of shares. A 10 times reduction would cut the number of shares to 54,257387 which would not be far off the result of the 2016 25 to 1 reverse split that reduced the number of shares to 57,780,361. The nominal sp of 25p would need to drop a bit to accommodate the overall plan. Before the 2016 reverse split it was 1p. It became 25p at the same time as the 2016 reverse split. If history repeats itself it could drop to 2.5p or less.

In that case, perhaps straight after the EGM?

I expect that the consolidation will not take place until AVO has obtained the agreement of all parties who will be affected by the prospective recapitalisation plan. Everything, including the consolidation and sub division will then probably take effect at more or less the same time. My guess is that might be by the end of this month.

"The Directors consider that the number of existing Ordinary Shares is not only unwieldly in volume for a company of

Advanced Oncotherapy's market capitalisation, but when combined with the prevailing share price, is not conducive to an orderly market. "

The wording is so similar to their statement in 2016 when they divided the number of shares by 25, that the only conclusion I can draw from it is that they will not be content with merely halving the number of shares this time, either, as that would only increase the share price to around 4p. I believe that the BoD wants to increase it to far more than that.

I believe a significant reduction in the number of share is on the cards. Going on the wording of their statement and the similarity it has to their statement in 2016 when they reduced the number of shares by 25 times, I expect a reduction of a similar magnitude now. That would make the share price somewhere between 40p and 50p. I've tried, and failed, to work out what effect that might have on the rest of their plan.

Kenj.

I apologise for not explaining my thoughts more clearly. However, I suspect that we might be close to finding out what AVO intends, so any further attempts by me to explain my view of the situation are likely to be overtaken by events. It will be what it will be.

The RNS clearly states that " In order to implement the Prospective Recapitalisation Plan it will be necessary to first implement a capital reorganisation of the Company" The RNS then refers to a consolidation of share capital that will result in a more appropriate number of shares in issue. That clearly refers to a reverse split that will not only reduce the number of shares but will, in the process, also increase the share price of the remaining shares in proportion to the reduction of the number of shares.

The RNS then refers to a 'sub-division' and clearly states that it is also needed "in order to implement the Prospective Recapitalisation Plan."

The rest of the proposed plan depends on those two elements being in place and the share price being higher, and possibly appreciably higher, than it is at the moment.

It seems clear to me that the BoD has in mind a significant reduction in the number of share in issue. I experienced the 2016 reverse split so I wouldn't be surprised if this one was of a similar magnitude. The language in which they describe the necessity of a consolidation now is very similar to the language they used then. I feel It means that we might reasonably expect a new share price of around 50p with a corresponding drop in the number of shares we hold. That would invalidate any calculations some of us might be tempted to make, based on the present share price.

I thought I understood some of it but perhaps I didn't.

In any case, we can only wait and see what happens.

Afternoon all,

I've now read through the RNS and think I understand some of it. Others might think I'm being unrealistic. They might be right.

Anyway, this is what I think:

I see no contradiction between the proposed consolidation and the proposed subdivision. I think they are two separate parts of the plan. I believe that the consolidation is likely to be similar to the reverse split of 2016 so will have the effect of increasing the share price by reducing the number of shares in issue. The rest of the proposed plan, including the subdivision, seems to me to depend on there being a higher share price than we currently have.

It will not be the first time that AVO has consolidated its share capital. They last did it, with some success, on 1/7/2016 when they did a reverse split of 1 for 25 existing shares. Each share immediately increased in value by 25 times

If they repeated the exercise, using the same consolidation figures, they would end up with 21,702,955 shares worth about 48p each instead of the current 542,573,869 shares worth 1.925p each. The value of each shareholder's holding would remain unchanged. I guess that the increase in the value of each share might have an impact on how the the rest of the proposals in the RNS might be interpreted.

I agree that it would be great if the news were better and not include so many uncertainties but it is a lot better than losing everything.

It is excellent news. Quite apart from the fact that AVO should retain control of LIGHT so should be able to bring its plan of democratising proton beam therapy to fruition, it also means that our shares should retain some value, as opposed to facing the risk being valueless. We might even see the value of our shares increase over time, especially if AVO becomes the proton beam therapy's version of, say, Microsoft.

The RNS demonstrates that no one wants AVO to fail.