Advanced Oncotherapy - Further update on financing discussions

Advanced Oncotherapy

01/02/2024 07:00

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RNS Number : 6128B  Advanced Oncotherapy PLC  01 February 2024

Prior to publication, the information contained within this announcement was
deemed by the Company to constitute inside information for the purposes of
Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310.
With the publication of this announcement, this information is now considered
to be in the public domain.

 

1 February 2024

ADVANCED ONCOTHERAPY PLC

("Advanced Oncotherapy", "AVO" or the "Company")

 

Further update on financing discussions

 

Further to the Company's announcement released on 9 January 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 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 continue to make progress and the Investor
has re-confirmed their continued commitment to the Proposed Financing
Transaction. However, there have been some unexpected delays encountered with
the Investor such that 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 expected to be in the region of $15 million, being received
during February 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. The
Investor has made a CHF50,000 (equivalent to c. £45,000) advance payment on
the Proposed Financing Transaction which has been put towards the Company's
general working capital requirements. 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 9 January 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 (http://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)           Tel: +44 (0) 20 3328 5656

 Amrit Nahal / Matt Butlin (Sales & Corporate Broking)

 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.

 

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