29 Feb 2024 17:19
29 February 2024
ADVANCED ONCOTHERAPY PLC
("Advanced Oncotherapy", "AVO" or the "Company")
Further update on financing discussions
Further to the Company's announcement released on 1 February 2024, Advanced Oncotherapy (AIM: AVO), the developer of LIGHT, the next-generation proton therapy system for cancer treatment, provides the following update in relation to its financing discussions and financial position.
On 9 January 2024 and 1 February 2024 the Company announced, inter alia, that it was continuing to work on its recapitalisation plan with the third-party investor (the "Investor") that it entered into a non-binding term sheet with on 14 November 2023 (the "Proposed Financing Transaction"). Discussions with the Investor on the Proposed Financing Transaction have, since 1 February 2024, continued to make progress and the Investor has re-confirmed their continued commitment to the Proposed Financing Transaction. However there have been further delays encountered with the Proposed Financing Transaction and the initial tranche of funding has, as at the date of this announcement, not been received.
The Company and the Investor are now working towards the initial tranche of funding, which is still expected to be in the region of $15 million, being received by the end of March 2024. There can be no guarantee that this funding will be received nor the quantum or timing thereof.
As previously announced it is also expected that as part of the Proposed Financing Transaction the Company would be required to restructure its financial liabilities with a view to providing a long-term financing solution for the Company to continue as a going concern. The Proposed Financing Transaction would also be subject to, amongst other things, approval by shareholders of the Company and consent from certain other stakeholders of the Company.
Since the announcement made by the Company on 9 January 2024, the Company has been carefully managing its working capital position and its creditors. As at the date of this announcement, the Company has negligible cash resources and significant debt levels, as set out in the announcement of 9 January 2024.
The Company also remains in advanced discussions with a third-party investor regarding a short-term loan facility which, if put in place, would provide the Company with additional short term bridge financing while the Company progresses on the Proposed Financing Transaction.
Whilst the board of the Company is hopeful of a satisfactory outcome, there can be no certainty that the Proposed Financing Transaction will proceed nor that the short-term loan facility will be put in place. Without access to the additional capital which is proposed to be provided by the Investor pursuant to the Proposed Financing Transaction, the Company is unlikely to be able to continue to trade and would very likely become insolvent and be placed into administration.
Further to the Company's announcement of 1 February 2024 the Company's shares remain suspended from trading on AIM.
Further announcements will be made at the appropriate time.
Advanced Oncotherapy Plc | www.avoplc.com |
Dr. Michael Sinclair, Executive Chairman | Tel: +44 (0) 20 3617 8728 |
Nicolas Serandour, CEO | |
WH Ireland Limited (Financial adviser) | Tel: +44 (0) 20 7220 1666 |
Antonio Bossi / James Bavister | AVOPLC@whirelandcm.com |
Allenby Capital Limited (Nomad and Joint Broker) | |
Nick Athanas / Piers Shimwell (Corporate Finance) Amrit Nahal / Matt Butlin (Sales & Corporate Broking) | Tel: +44 (0) 20 3328 5656 |
SI Capital Ltd (Joint Broker) | |
Nick Emerson | Tel: +44 (0) 1483 413 500 |
Jon Levinson | Tel: +44 (0) 20 3871 4066 |
About Advanced Oncotherapy Plc www.avoplc.com
Advanced Oncotherapy Plc, a UK headquartered company with offices in London, Geneva, The Netherlands and in the USA, 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 Image Guided Hadron Technology (LIGHT). LIGHT's compact configuration delivers proton beams in a way that facilitates greater precision and electronic control.
Advanced Oncotherapy Plc will offer healthcare providers affordable systems that will enable them to treat cancer with innovative technology as well as expected lower treatment-related side effects.
Advanced Oncotherapy Plc 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.