AVO.L Regulatory News (AVO)

ADVANCED ONCOTHERAPY PLC

("Advanced Oncotherapy" or the "Company")

Additional financing agreement

Advanced Oncotherapy plc (AIM: AVO), the developer of next generation proton therapy systems for cancer treatment, announces that on Friday 24 March it signed an additional 12-month convertible and redeemable loan, at a conversion price of 100p, which will provide net funding of £3m, with an option to draw-down a further £2m within the next 60 days.

The financing agreement with Blackfinch Investment Ltd, through its subsidiary Henslow Trading Limited ("Blackfinch"), provides the Company with additional financing to complement the proposed financing facility with Bracknor which was announced on 22 February 2017 and added flexibility in terms of forthcoming financing requirements.

Terms of the Loan Agreement

· 1 year loan

· £3m loan, with option to draw down further £2m

· Interest rate of 11%

· Repayment in cash at maturity, or possibility at discretion of the lender at any time within the next 12 months to convert all or part of the loan into Advanced Oncotherapy shares at a conversion price of 100p per share

· 1,000,000 warrants will be issued at an exercise price of 150p, exercisable for 5 years

Loan security

The loan is secured on the Company's lease for 141-143, Harley Street and on certain other equipment of the Company. Should the Company not meet its obligations under the Loan Agreement and after a four month period during which the lease is offered for sale, Michael Sinclair, Executive Chairman of the Company, has agreed with Blackfinch to buy back the lease at a value equivalent to the outstanding amount of the £3m loan plus accrued interest and expenses. Michael Sinclair has also undertaken to the Company that, should he be required to buy back the lease from Blackfinch he will offer to the then shareholders of the Company to participate in the buy back on the same terms as his participation pro rata for their shareholding in the Company.

Related party transaction

The offer by Michael Sinclair to buy back the lease from Blackfinch which is part of the loan agreement with Blackfinch constitutes a transaction with a related party under the AIM Rules for Companies. In accordance, therefore, with the AIM Rules, the directors of the Company, with the exclusion of Michael Sinclair, having consulted with the Company's nominated adviser, Stockdale Securities Limited, consider that the terms of Michael Sinclair's entering into the agreement with Blackfinch are fair and reasonable insofar as the Company's shareholders are concerned.

The Company expects to draw down on the £3m shortly and this will provide additional funds outside of the proposed Bracknor arrangement.

Commenting, Nicolas Serandour, CEO of Advanced Oncotherapy, said: "This additional funding option from Blackfinch provides us with the flexibility to utilise this facility for our financing needs, and complements the funding option and security provided by the Bracknor facility. We continue to consider additional financing options, including non-dilutive financing, the facility with Metric Capital, and other possibilities and with these two funding options in place we have strengthened the position from which we approach these options."

Commenting, Richard Cook, CEO of Blackfinch Investment, said: "I am delighted that Blackfinch has been able to work with Advanced Oncotherapy plc in providing finance at this exciting stage within their corporate journey. The technology which will be provided from Advanced Oncotherapy's work can help to improve lives, which is, of course, a great positive. I look forward to watching the progress over the coming months and seeing the benefits of the work unfold."

For further information, please contact:

About Advanced Oncotherapy plc www.avoplc.com

Advanced Oncotherapy is a provider of particle therapy with protons that harnesses the best in modern technology. Advanced Oncotherapy's team "ADAM", based in Geneva, focuses on the development of a proprietary proton accelerator called Linac for Image Guided Hadron Therapy (LIGHT). LIGHT accelerates protons to the energy levels achieved in legacy machines but in a unit that is a quarter of the size and between a quarter and a fifth of the cost. This compact configuration delivers proton beams in a way that facilitates greater precision and electronic control which is not achievable with older technologies.

Advanced Oncotherapy will offer healthcare providers affordable systems that will enable them to treat cancer with an innovative technology as well as better health outcomes and lower treatment related side effects.

Advanced Oncotherapy continually monitors the market for any emerging improvements in delivering proton therapy and actively seeks working relationships with providers of these innovative technologies. Through these relationships, the Company will remain the prime provider of an innovative and cost-effective system for particle therapy with protons.

About Blackfinch www.blackfinch.com

Blackfinch is an established UK provider of tax-efficient investment solutions. Their philosophy is based on transparency and simplicity and their services provide real solutions to real financial planning challenges faced by individuals today.