REG - Advanced Oncotherapy - Final results for the year ended 31 December 2021
30/06/2022 09:00
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RNS Number : 7944Q Advanced Oncotherapy PLC 30 June 2022
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.
30 June 2022
ADVANCED ONCOTHERAPY PLC
("Advanced Oncotherapy" or the "Company")
Final results for the year ended 31 December 2021
Significant progress made towards completing a fully operational LIGHT system
with a 230MeV beam; RF conditioning of all CCL accelerating modules completed
Company continues to expect a fully operational LIGHT system at 230 MeV during
summer 2022
Further research published highlights the potential superiority of the LIGHT
system
Advanced Oncotherapy (AIM:AVO), the developer of LIGHT, the next-generation
proton therapy system for cancer treatment, today announces its audited
results for the year ended 31 December 2021.
Key Highlights (including post-period):
· Significant progress made towards completing the Company's first
fully operational LIGHT system operating at 230 MeV:
o Completed manufacturing of all critical hardware of the LIGHT system and
all CCL accelerating modules have been radio-frequency ("RF") conditioned.
o The machine beam has been successfully optimised to a sub-millimetre size
and is capable of supporting a proton beam pulse every 5 milliseconds.
o Fully integrated medical software suite is now in place, the construction
of the medical treatment room has been completed, and the LIGHT Patient
Positioning System has been installed, providing future customers with a
seamless user experience.
o Good progress has been made in preparing data to be sent to the US Food
and Drug Administration (FDA) regarding the stability, intensity and spot size
of the proton beam.
o Optimised the installation process to enable quicker set-up of future
LIGHT systems.
· Continue to expect a fully operational LIGHT system operating at
230 MeV during summer 2022, despite the impact of the COVID-19 pandemic.
· Signed a lessor financing partnership with Kineo Finance which
will provide potential customers with easier access to the Company's LIGHT
system by reducing the need for large initial upfront payments.
· Signed a letter of intent (LOI) with Saba Partners SA for the
proposed purchase of a three-treatment room LIGHT system in Switzerland.
· A number of recently published research papers and conference
presentations highlight the potential superiority of the LIGHT system to
deliver FLASH, further differentiating the machine from cyclotron-based proton
therapy systems.
· During the period and post period raised c.£58 million (before
costs) through equity fundraises which strengthened the Company's balance
sheet and contributed to the funding for progressing the assembly,
documentation, verification and validation activities.
Nicolas Serandour, CEO of Advanced Oncotherapy, said:
"Over the past 12 months, the Company has made significant strides towards the
delivery of its first fully operational LIGHT system operating at 230MeV. We
finished manufacturing all critical hardware of the LIGHT system and RF
conditioned all CCL accelerating modules. The LIGHT machine's beam has been
successfully optimised to a sub-millimetre size and the machine is capable of
supporting a proton beam pulse every 5 milliseconds.
"As a result of our efforts, we have further developed our knowledge and
streamlined our processes, which will accelerate the development of future
machines and, in turn, set the foundations to fast forward the global adoption
of the LIGHT system.
"I am looking forward to the year ahead, as 2022 will be a significant year in
the history of Advanced Oncotherapy, as we remain on track to deliver a fully
operational LIGHT system operating at 230MeV this summer. Recent progress and
successes would have not been possible without the outstanding work and
dedication of our staff and the continuous support from our shareholders. We
believe the Company is now positioned to deliver on our vision of helping to
defeat cancer and democratise proton therapy across the globe."
Posting of Annual Report and Notice of Annual General Meeting
The annual report for the year ended 31 December 2021, which includes notes to
the financial statements, will be available shortly from the Company's website
at www.advancedoncotherapy.com (http://www.advancedoncotherapy.com) and will
shortly be posted or emailed to shareholders together with a Notice of Annual
General Meeting to be held at the Company's administrative head office at
Level 3, 4 Tenterden Street, London W1S 1TE on Friday, 29 July 2022 at 2.00pm
BST.
Advanced Oncotherapy plc www.avoplc.com (http://www.avoplc.com)
Dr. Michael Sinclair, Executive Chairman Tel: +44 (0) 20 3617 8728
Nicolas Serandour, CEO
Allenby Capital Limited (Nomad and Joint Broker)
Nick Athanas / Liz Kirchner (Corporate Finance) Tel: +44 (0) 20 3328 5656
Amrit Nahal / Matt Butlin (Sales and Corporate Broking)
SI Capital Ltd (Joint Broker)
Nick Emerson Tel: +44 (0) 1483 413 500
Jon Levinson Tel: +44 (0) 20 3871 4066
FTI Consulting (Financial PR & IR) advancedoncotherapy@fticonsulting.com
(mailto:advancedoncotherapy@fticonsulting.com)
Simon Conway / Rob Winder Tel: +44 (0) 20 3727 1000
Notes
The following section outlines some of the key technical components for the
LIGHT system (referred to in today's announcement)
· Coupled cavity linacs (CCLs) - The CCL structures or "higher
speed accelerators" are an essential part of the LIGHT Accelerator. They
consist of a series of "cells" which accelerate the protons from 37.5 MeV to
energies that can be applied usefully to a clinical setting (70 MeV to 230
MeV).
· RF conditioning - The radio-frequency ("RF") conditioning
involves gradually increasing the input power until there is an electrical
"breakdown". After each breakdown, the accelerating modules can sustain an
increase in the input power. This process is continued and iterative until the
power reached is 20% above the nominal values. This ensures great stability
when operating at nominal power. As the Daresbury LIGHT system is expected to
be the first linear proton accelerator to be commissioned for medical use, the
RF conditioning is unprecedented, hence carrying some level of uncertainty
with regards to the time needed to complete this important task. This risk has
been significantly removed following recent progress.
About Advanced Oncotherapy Plc
Advanced Oncotherapy, 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 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 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.
STATEMENT FROM EXECUTIVE CHAIRMAN AND CHIEF EXECUTIVE OFFICER
Dear shareholders,
Despite the unknowns brought by COVID-19 over the period, the Company's
objectives and purpose remained consistent with our vision of democratising
proton therapy and guided our employees and partners to overcome moments that,
at times, seemed insurmountable. We are now pleased and proud to say that
Advanced Oncotherapy is on the verge of doing something that has never been
done before - building a sustainable and value-enhancing platform to
democratise access to proton therapy. We continue to be centre stage in the
transformation of cancer care and the deployment of proton therapy, and what
we do in this critical phase will define us for decades.
From C to Sea
Over 20 years ago, when family members had cancer, they would often call it
the C word and it was hard to blame them: cancer was largely a death sentence
for those who were unfortunate enough to get it. Few people can say their
lives have not been touched by the disease, either personally or through
friends and family. However, the combination of advances in cancer treatments,
improved awareness and diagnosis, has changed the trajectory and prognosis of
cancer.
Cancer mortality rates have plummeted over the past years, with four out of
five of those diagnosed with childhood cancer set to survive for more than
five years after diagnosis. While this is great news, much more remains to be
done. An estimated ten million people die from cancer each year, and about 75%
of cancer survivors have one or more health problems, often as a side-effect
of the treatments they received, ranging from heart failure due to
chemotherapy, to secondary malignancies as a result of radiotherapy. Chronic
problems are also associated with surgeries to remove cancers. These methods
have influenced an 'innovation' mindset that is focused on improving clinical
outcomes and patients' quality of life. This is best exemplified by the
development of more targeted cancer modalities, arguably the most important
paradigm treatment shift in cancer care over the last decade.
Proton therapy - as an effective proven radiation therapy with limited
long-term side effects due to its high precision - has a key role to play in
transforming cancer treatment. Yet, with only 114 proton therapy centres
currently across the globe, only circa 87,000 cancer patients can be treated
in one year at a cost which is often out of the reach of individual patients
and is clearly unsustainable for healthcare systems. This situation is
unsatisfactory and, as such, access to proton therapy needs to be
democratised. We believe this can be achieved through our 'blue ocean'
strategy which relies on the following '5S' principles:
· Solving customers' needs: Our LIGHT solution consists of a
breakthrough linear accelerator, an integrated imaging and positioning system
and the latest software advancement, which when taken together provide a
medically superior solution that is easier to install and can be fitted in
existing structures, and more accessible, resulting in a significantly lower
treatment cost for payors. This is not only value-enhancing for our customers,
but also for the Company's shareholders;
· Supporting customers through long-term servicing agreements;
· Scaling our infrastructure to deliver a fast-growing pipeline,
further reduce costs and lead times;
· Sharing our vision with all stakeholders through a long-term
interest alignment. We intend to expand the market opportunity through a
uniquely designed business model built upon a joint risk / reward sharing
policy as evidenced by the profit-sharing arrangements agreed with customers;
and
· Sustaining our competitive advantage by leveraging our
proprietary LIGHT platform through a continuous commitment to innovate,
attracting top talent and making a positive impact on wider society and the
environment.
We expect our '5S' strategy to break out the conventional barriers that
currently define the radiation market.
Executing our global strategy
In a highly regulated industry, we must continue to demonstrate our ability to
adapt to our environment and remain agile by accelerating the speed at which
we execute our strategy to deliver improved returns. In 2021, the executive
team made significant progress in overseeing the assembly of the LIGHT system
at our assembly and integration site located in Daresbury, UK, as well as
laying out the groundwork for a potential successful market approval.
Execution of our '5S' strategy has also required a disciplined approach to how
we invest in our assets. Over the last two years, we have made significant
investments in our infrastructure. The trajectory of investment across our
organisation is pivoting towards further cost optimisation for future machines
and faster delivery times. The Board supports this approach and continues to
encourage the executive team to shift their attention to rapid execution, with
the key focus areas being the long-term financial benefits of making Advanced
Oncotherapy the undisputed industry leader and innovator in the proton therapy
field. This is crucial if we are to benefit from the versatility of the LIGHT
platform and knowledge uniquely nurtured within our organisation as we pursue
our various multi-year strategic goals.
In 2021, our execution plan and resilience as an organisation continued to be
tested by COVID-19. While the pandemic has resulted in continual shifts and
disruptions to normal business patterns - supply chain functioning,
fluctuating demand in certain areas, workplace operations - we continued to be
focused on our LIGHT project. We instigated supply chain initiatives to
identify and use alternative components and suppliers whilst complying to ISO
standards and medical device requirements. We contracted with key suppliers to
recruit additional installation and testing expertise and capacity. Most
importantly, we kept our sights on our long-term objectives and our dynamic
vision for the future of health. This confirmed the fortitude of our employees
and dedication to the values that guide our behaviour every day and help us to
build a business of the future. We are inspired by the abundant accounts of
the extraordinary care, compassion and commitment of our employees as well as
the strength of our organisation which has been resourceful and adaptable,
able to anticipate, improvise, and draw on deep reserves of experience,
relationships, and know-how.
The LIGHT system: a machine that will revolutionise cancer treatment
There is currently a significant unmet medical need in the treatment of
cancer, and we believe the LIGHT system can play a key role in revolutionising
cancer therapy. The modularity and movability of the LIGHT system allow us to
lease machines to healthcare providers - a new business model in the proton
therapy market - uniquely positioning the Company in the market and providing
us the opportunity to play a key role in revolutionising proton therapy.
The accelerator, currently under final assembly, is driven by four inductive
output tubes (IOTs) operating at 750 MHz, which generate the relevant power
for the radiofrequency quadrupole (RFQ), and 13 klystrons operating at 3 GHz,
which provide high radio-frequency power to the machine to accelerate the
proton beam. The accelerator is cooled, kept under vacuum, and monitored by
beam diagnostics and the Company's time-of-flight energy measurement
algorithm. Our proprietary LIGHT Accelerator Control System integrates more
than 300 separate devices and is driven from a control room where operators
accelerate and steer the proton beam. Protons go through a gallery of
accelerators moving as a 200Hz pulsed beam through the RFQ, the side-couple
drift tube linacs (SCDTLs) and then through the 15 coupled cavity linacs
(CCLs) accelerating up to a maximum energy of 230 MeV, the energy required to
treat deep-seated tumours at a depth of 32cm. Patient treatment will take
place in the treatment room which is located at the end of the accelerator
where a state-of- the-art robot chair, with CT scanner and X-Ray panels for
accurate patient positioning, has been installed.
During the period, the Company has continued to make significant progress with
the commissioning of the LIGHT system. The machine installed at Daresbury has
been successfully optimised to deliver a proton beam with a beam size smaller
than 1 mm and a beam current of about 50 μA, equivalent to 500 million
protons per pulse. As a result, the Company has made good progress in
preparing data for the US Food and Drug Administration (FDA) regarding the
stability, intensity and spot size of the proton beam. These new data sets
demonstrate that the measurements of the quality of the beam match those from
computer simulations. The Company can now proceed to finalise the integration
of the remaining high energy accelerating modules of the LIGHT machine and
further optimise the proton beam.
We have continued to work with our clinical collaborator (the University
Hospitals Birmingham NHS Foundation Trust) and Clarivate, a global analytics
company, to define the clinical protocol for treating the first patients.
These discussions have been held in close coordination with the FDA, the UK
Medicines and Healthcare products Regulatory Agency (MHRA) and the European
Notified Body, which we consult with on a regular basis. As a result of these
discussions, the Company has been requested to provide new measurement data to
confirm that the beam performance is maintained within the required tolerances
for the clinical use both in terms of energy (i.e. depth in the body) and
intensity (i.e. number of protons per second). Although these measurements
have not been conducted with the final configuration for 230MeV, they indicate
that the beam stability is not a cause for concern in the planned final
configuration, a key step which is expected to de-risk the overall
certification process. This request originates from the fact that the key
LIGHT components are now assembled in situ at Daresbury and the underlying
parameters have been optimised in recent months as the Company performs the
verification and validation activities, a key step in ensuring product
certification.
Commercial momentum
Over the past year, we continued to build commercial momentum around the LIGHT
system. During the period, we signed a lessor financing partnership with Kineo
Finance (formerly known as DiaMedCare). Under the terms of the partnership
agreement, Kineo Finance will acquire LIGHT systems from the Company and lease
them to customers that are commissioning the LIGHT system for oncology
treatments. As such, we will be able to offer customers easier access to the
LIGHT system through a flexible financing solution that reduces the need for
large initial upfront payments from customers.
During the period, we also signed a letter of intent with Saba Partners SA for
the proposed purchase of a three-treatment room LIGHT system in Switzerland.
The Company is working to obtain the applicable CE marking clearances and is
working with Saba Partners to put in place a binding agreement and finalise
the legal documentation. These agreements build on the commercial momentum for
the LIGHT system from our earlier agreements with the London Clinic, the
Mediterranean Hospital in Limassol, Cyprus, and University Hospital Birmingham
NHS Foundation Trust (UHB).
Adapting our structure to address health, social and environmental challenges
Our long-standing aspiration of creating value for society and for our future
business is more relevant than ever, given the mounting threats to people's
lives and livelihoods posed by the health, social and environmental challenges
dominating today's global agenda. The past two years have underscored the
essential role of science in tackling these challenges, whether managing a
rogue virus or transitioning into an eco-friendlier environment.
In that regard, we are committed to being a sustainable business. To achieve
this ambition, we strive to do business in a financially, environmentally, and
socially responsible way. We have designed a breakthrough proton system that
is well-positioned to meet the increasing needs of our customers and patients
who are demanding more circular and sustainable products around the world. We
have a clear, science-based, disciplined and affordable path to further
promote our ESG principles; which is particularly relevant as we continue to
grow our capacity.
Furthermore, we are committed to strong diversity through ensuring academic
qualifications are not the sole criteria for hiring, bespoke training and
mentoring, flexible working policies and an inclusive culture as well as
having the right competences to meet future challenges.
Financing foundations
We have been able to continue with progressing our activities as a result of
the completion of equity investments since January 2021 totalling c.£58
million (before costs). Funds raised have supported the Company as it
progresses towards having a fully operational LIGHT system operating at 230MeV
during summer 2022.
Our financial results
The Company recorded a comprehensive loss of £30.3 million in the year ended
31 December 2021 (2020: £23.4 million), with shareholder funds as at 31
December 2021 of £61.4 million (2020: £44.1 million). Cash and cash
equivalents at the year-end were £4,260,490 (2020: £2,317,451).
Outlook
Looking ahead, 2022 is a significant year for us at Advanced Oncotherapy as we
move towards the delivery of our first LIGHT system operating at 230 MeV. We
have made significant strides towards achieving this milestone during the
period and have set the foundations to fast forward the global adoption of the
LIGHT system. We remain on track with our timeline of summer 2022 to deliver a
machine at 230 MeV.
In closing
The Company has emerged stronger despite the challenges it faced in 2021. We
have made significant progress towards the delivery of our first LIGHT system
operating at 230 MeV and have shown resilience in the face of adversity. We
are convinced that this Company is taking the right steps to shape a
successful future.
Such progress would not have been possible without the tremendous effort and
dedication of our staff. We remain confident in our ability to deliver the
first machine with a 230 MeV beam during summer 2022 and look forward to what
will continue to be a significant year for the Company.
On behalf of the Board of Directors, we would like to offer our sincere thanks
to all Advanced Oncotherapy employees for their dedication and contributions
to the good operational and strategic progress and to the management team for
their leadership. And most importantly, thank you for supporting us as
shareholders, for your loyalty and for being a part of our journey.
Dr Michael Sinclair Nicolas Serandour
Executive Chairman Chief Executive Officer
30 June 2022 30 June 2022
Consolidated statement of comprehensive income Group Group
For the year ended 31 December 2021 - Financials in £ 2021 2020
Revenue - -
Cost of sales - -
Gross loss - -
Administrative expenses (23,736,754) (20,269,788)
Operating loss (23,736,754) (20,269,788)
Finance income - 3,297
Finance costs (5,755,981) (5,032,981)
Loss on ordinary activities before taxation (29,492,735) (25,299,472)
Taxation - -
Loss after taxation (29,492,735) (25,299,472)
Loss for the period
Equity of shareholders of the parent company (29,492,735) (25,299,472)
Non-controlling interests - -
(29,492,735) (25,299,472)
Other comprehensive loss
Items that will or may be subsequently re-classified to profit or loss:
Exchange differences on translation of foreign operations (772,061) 1,902,660
Total comprehensive loss for the year net of tax (30,264,796) (23,396,812)
Total comprehensive loss attributable to:
Equity of shareholders of the parent company (30,264,796) (23,396,812)
Non-controlling interests - -
(30,264,796) (23,396,812)
Loss per ordinary share
Basic and diluted (7.71)p (8.75)p
Weighted average number of shares (000's) 382,479 288,981
Consolidated statement of financial position Group Group
As at 31 December 2021- Financials in £ 2021 2020
Non-current assets
Intangible assets 68,577,370 56,869,415
Property, plant and equipment 7,871,939 6,710,777
Right of use assets 33,183,516 31,437,161
Trade and other receivables 927,414 934,834
110,560,239 95,952,187
Current Assets
Inventories 25,826,665 22,138,323
Trade and other receivables 643,319 1,885,224
Cash and cash equivalents 4,260,490 2,317,451
30,730,474 26,340,998
Total assets 141,290,713 122,293,185
Current liabilities
Trade and other payables (5,347,169) (6,438,217)
Lease liabilities (745,315) (1,407,853)
Borrowings (10,025,497) (10,039,316)
(16,117,981) (17,885,386)
Non-current liabilities
Licence fee received (16,500,000) (16,500,000)
Lease liabilities (32,201,824) (30,928,876)
Borrowings (10,382,520) (8,258,435)
Embedded Derivative (4,718,960) (4,578,210)
(63,803,304) (60,265,521)
Total liabilities (79,921,284) (78,150,907)
Net assets 61,369,428 44,142,278
Equity
Share capital 112,903,053 83,359,894
Share premium reserve 71,087,838 61,442,782
Share option reserve 15,722,018 7,675,332
Reverse acquisition reserve 11,038,204 11,038,204
Exchange movements reserve 2,120,125 2,892,186
Accumulated losses (151,501,810) (122,266,120)
Equity attributable to shareholders of the Parent Company 61,369,428 44,142,278
Total equity funds 61,369,428 44,142,278
Consolidated statement of changes in equity
For the year ended 31 December 2021- Financials in £
Share capital Share premium reserve Share option reserve
Balance at 01 January 2020 61,105,852 60,452,065 7,853,803
Loss for the year - - -
other comprehensive income exchange movement - - -
Total comprehensive Income - - -
Shares Issued in the period 22,254,042 2,003,103 -
Expenses deducted from share premium - (1,012,386) -
Lapsed options - - (510,950)
Lapsed warrants - - (1,026,788)
Share based payments - - -
- Share option charge - - 704,533
- Share warrants charge - - 654,734
Balance at 31 December 2020 83,359,894 61,442,782 7,675,332
Balance at 01 January 2021 83,359,894 61,442,782 7,675,332
Loss for the year - - -
other comprehensive income exchange movement - - -
Total comprehensive Income - - -
Shares Issued in the period 29,543,159 16,514,884 -
Expenses deducted from share premium - (1,194,556) -
Cost of warrants deducted from share premium - (5,675,272) 5,675,272
Lapsed options - - -
Lapsed warrants - - (257,045)
Share based payments - - -
- Share option charge - - 2,421,599
- Share warrants charge - - 206,859
Balance at 31 December 2021 112,903,053 71,087,838 15,722,018
Consolidated statement of changes in equity
For the year ended 31 December 2021
- Financials in £
Reverse acquisition reserve Exchange movement reserve Accumulated losses Total equity share holders interest
Balance at 01 January 2020 11,038,204 989,526 (98,504,386) 42,935,064
Loss for the year - - (25,299,472) (25,299,472)
other comprehensive income exchange movement - 1,902,660 - 1,902,660
Total comprehensive Income - 1,902,660 (25,299,472) (23,396,812)
Shares Issued in the period - - - 24,257,145
Expenses deducted from share premium - - - -
Lapsed options - - 510,950 -
Lapsed warrants - - 1,026,788 -
Share based payments - - - -
- Share option charge - - - 704,533
- Share warrants charge - - - 654,734
Balance at 31 December 2020 11,038,204 2,892,186 (122,266,120) 44,142,278
Balance at 01 January 2021 11,038,204 2,892,186 (122,266,120) 44,142,278
Loss for the year - - (29,492,735) (29,492,735)
other comprehensive income exchange movement - (772,061) - (772,061)
Total comprehensive Income - (772,061) (29,492,735) (30,264,796)
Shares Issued in the period - - - 46,058,043
Expenses deducted from share premium - - - (1,194,556)
Cost of warrants deducted from share premium - - - -
Lapsed options - - - -
Lapsed warrants - - 257,045 -
Share based payments - - - -
- Share option charge - - - 2,421,599
- Share warrants charge - - - 206,859
Balance at 31 December 2021 11,038,204 2,120,125 (151,501,810) 61,369,429
Consolidated statement of cash flows Group Group
For the year ended 31 December 2021 2021 2020
- Financials in £
Cash flow from operating activities
Loss after taxation (29,492,735) (25,299,472)
Adjustments to cash flows from non-cash items
Depreciation of property, plant and equipment 1,044,530 1,000,115
Amortisation of right of use assets 1,294,725 1,331,698
Finance income - (3,297)
Finance expense 3,603,480 5,032,981
Taxation - -
Share based payment expense 2,628,458 1,340,949
Foreign exchange 3,272,736 471,204
Cash flows from operations before changes in working capital (17,648,807) (16,125,822)
Changes in inventories (9,188,342) (7,090,095)
Change in trade and other receivables 1,249,325 235,537
Change in trade and other payables (3,982,181) 968,798
Cash (used) / generated from operations (29,570,005) (22,011,582)
Corporation Tax Receipt - 1,768,591
Cash flows from operating activities (29,570,005) (20,242,991)
Cash flows from investing activities:
Interest received - 3,297
Purchase of buildings, plant and equipment (2,222,647) (1,656,335)
Capital expenditure on intangible assets (7,072,083) (5,781,884)
Proceeds from disposal of investment property - -
Cash flows from investment activities (9,294,730) (7,434,922)
Cash flows from financing activities:
Proceeds from issue of ordinary shares 43,564,416 18,040,021
Costs of share issue 1,299,072 (728,853)
Interest paid (294,494) (327,086)
Long term loan receipts - 7,621,951
Lease payments (3,781,009) (1,865,946)
Short term loan receipts 7,850,000 4,000,000
Short term loan repayments (7,850,000) -
Cash flows from financing activities 40,787,985 26,740,087
Increase/(decrease) in cash and cash equivalents 1,923,249 (937,825)
Exchange gain/(loss) on cash and cash equivalents 19,789 20,109
Cash and cash equivalents at 01 January 2021 2,317,451 3,235,167
Cash and cash equivalents at 31 December 2021 4,260,490 2,317,451
1. GENERAL INFORMATION
Advanced Oncotherapy PLC ("the Company") is a public limited company
incorporated and domiciled in the UK. Its registered office is Level 17,
Dashwood House, 69 Old Broad Street, London EC2M 1QS.
The nature of the operations and principal activities of the Company and its
subsidiary undertakings (the "Group") is to provide particle therapy with
protons that harnesses the best in modern technology
The Company's ordinary shares are traded on the AIM market of the London Stock
Exchange ("AIM").
2. BASIS OF PREPARATION
The financial information set out in this announcement does not constitute
statutory accounts as defined by section 435 of the Companies Act 2006. It has
been prepared in accordance with the prepared in accordance with the
recognition and measurement principles of international accounting standards
in conformity with the requirements of the Companies Act 2006 and in
accordance with the AIM rules and is therefore not in full compliance with
IFRS. The financial information has been prepared on the historical cost basis
modified to include certain assets and liabilities at fair value.
The financial information is based on the financial statements for the year
ended 31 December 2021 which are authorised for issue. The audit report will
not be modified but does include a material uncertainty in respect of going
concern. It does not contain a statement under 498(2) or 498(3) of the
Companies Act 2006.
The Group has made a loss before tax of £29.5m (2021: £23.4m) and is
presently pre-revenue and, as such, has relied upon equity and debt funding to
progress its development plans. Post year end, the Group has successfully
raised £11.5m in equity and £1.5m in short term loans.
The Directors regularly review cash flow forecasts to determine whether the
Group has sufficient cash reserves to meet its future working capital
requirements and development plans. The Group's plans indicate that they need
to raise further finance and the Directors are confident based on past history
of successful fundraising and discussions with investors that the Group will
be successful in raising these funds. Additionally, they consider they can
defer settlement of creditors, reduce short term expenditure and obtain
short-term finance should there be any delay in completing any such
fundraising to allow continuance of their plans. They therefore consider it
appropriate to prepare the Group's financial statements on a going concern
basis.
However, as at the date of approval of these financial statements, there are
no legally binding agreements in place in relation to any fundraising or
extension of terms of with creditors and as the success of any finance raising
is outside the control of the company and is thus considered to be a material
uncertainty. There can be no certainty that additional funds will be
forthcoming which indicates the existence of a material uncertainty which may
cast doubt about the Group's ability to continue as a going concern and
therefore it may be unable to realise its assets and discharge its liabilities
in the normal course of business. The financial statements do not include the
adjustments that would result if the Group was unable to continue as a going
concern.
3. POST BALANCE SHEET EVENTS
Since the year end, the Group has raised additional equity through the issue
of shares:
No of Shares Equity
January 500,000 125,000
February 3,100,000 775,000
March 8,000,000 2,000,000
April 3,400,000 850,000
May 3,540,000 885,000
June 3,200,000 800,000
Announced in June 24,090,000 6,022,500
Total 45,830,000 11,457,500
On 23 March 2022, the Company entered into a new short term loan agreement of
£1.5 million with Nerano Pharma Ltd, a company owned and controlled by Seamus
Mulligan, a significant shareholder in the Company, with an interest rate of
1.25 per cent per month (the "Loan"). The Loan is repayable by the Company on
24 June 2022. As part of the agreement, the Company issued 6,382,978 warrants
to Nerano Pharma Ltd with an exercise price of 28.20 pence per share,
exercisable until 24 March 2025.
As at the date of publication of this report, the Loan remains outstanding.
Nerano Pharma has agreed not to seek repayment at the current time and is in
discussions with the Company surrounding the potential to convert the Loan
into New Ordinary Shares. At the current time no agreement has been entered
into in relation to varying the terms of the Loan nor have the terms of any
variation been, as yet, agreed. In the event that the terms cannot be agreed
between Nerano Pharma and the Company, the Company would seek to repay the
amounts owed pursuant to the Loan.
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