Advanced Oncotherapy - Update on Financing Discussions

Advanced Oncotherapy

09/01/2024 09:00

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RNS Number : 0936Z  Advanced Oncotherapy PLC  09 January 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.

 

9 January 2024

ADVANCED ONCOTHERAPY PLC

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

 

Update on Financing Discussions

 

Further to the Company's announcement on 23 October 2023, 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.

 

The Company continues to work on its recapitalisation plan with the
third-party investor (the "Investor") that it entered into a non-binding term
sheet with. The Company and the Investor signed an updated non-binding term
sheet on 14 November 2023. Discussions with the Investor are at an advanced
stage however, as at the date of this announcement, the Company has not
entered into any binding agreements nor has it received any funds from the
Investor. The Company is hopeful of receiving an initial tranche of funding
from the Investor during January 2024, although there can be no guarantee that
this funding will be received nor the timing thereof.

 

As part of the envisaged transaction (the "Financing Transaction"), inter
alia, it is also expected that 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 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.

 

As of 8 January 2024, the Company had negligible cash resources. The current
liabilities of the Company include an estimated £28 million owed to trade and
other unsecured creditors and £41 million 1  (#_ftn1) of financial debt.

 

The Company is also currently 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 Financing Transaction.

 

The Company has also been assessing alternatives ways to improve the balance
sheet of its Swiss operating subsidiary, ADAM SA ("ADAM"). ADAM has been
granted certain protections against its creditors through to 20 March 2024,
subject to certain conditions, whilst the Company continues its discussions on
the Financing Transaction.

 

Whilst the board of the Company is hopeful of a satisfactory outcome, there
can be no certainty that the 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 Financing Transaction, the Company is unlikely to be able to continue
to trade and would very likely become insolvent and be placed into
administration.

 

The Company's shares remain suspended from trading on AIM pending: (i)
completion of the Financing Transaction; (ii) publication of the Company's
annual report and accounts for the year ended 31 December 2022 as required by
Rule 19 of the AIM Rules for Companies; and (iii) publication of the Company's
unaudited interim results for the six months ended 30 June 2023 as required by
Rule 18 of the AIM Rules for Companies.

 

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.

 

 1  (#_ftnref1) Excluding value of embedded derivatives

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