Advanced Oncotherapy PLC Update on Financing and Current Financial Position (8855Q)
October 23 2023 - 2:04AM
UK Regulatory
TIDMAVO
RNS Number : 8855Q
Advanced Oncotherapy PLC
23 October 2023
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.
23 October 2023
ADVANCED ONCOTHERAPY PLC
("Advanced Oncotherapy", "AVO" or the "Company")
Update on Financing Discussions and Current Financial
Position
On 17 July 2023 Advanced Oncotherapy (AIM: AVO), the developer
of next-generation proton therapy systems for cancer treatment,
announced that it was exploring a recapitalisation plan aimed at
providing a longer-term funding solution to support the commercial
development of the LIGHT technology in a capital-intensive
industry. Further to this announcement, and the subsequent
announcement issued on 29 September 2023, the Company provides the
following update in relation to its financing discussions and
current financial position.
The Company has recently signed a non-binding term sheet with a
third-party (the "Investor"). Under this envisaged transaction (the
"Financing Transaction"), the Investor is expected to provide
funding of up to c.$80 million which is intended to meet the
Company's cashflow requirements through to the European
certification of the LIGHT System. The treatment of first patients
with LIGHT is now targeted for 2024 with certification of the LIGHT
System to follow thereafter. The form and terms of this Financing
Transaction will be subject to agreement on definitive
documentation, satisfaction of conditions precedent and the
obtaining of all requisite approvals and consents. It is
anticipated the Financing Transaction will be a mixture of equity
and debt financing. Discussions are progressing and further
announcements on the Financing Transaction will be made at the
appropriate time.
As previously announced the Company has been working on bridge
financing to alleviate the Company's immediate financing needs.
Discussions on bridge financing are ongoing and as part of these
arrangements, the Company has raised GBP200,000 via a short-term
four-month unsecured loan agreement with a new investor which
carries interest at a rate of 1.25% p.m. In addition, the Company
has raised GBP150,000 from an existing investor under its secured
convertible loan note agreement. The terms are the same as those
that were first announced on 1 March 2023. The Company continues to
carefully manage its creditors whilst it aims to finalise the
Financing Transaction.
As of 19 October 2023 the Company held cash of approximately
GBP200,000. The current liabilities of the Company include GBP22
million owed to trade and other unsecured creditors and GBP39
million of financial debt . If the Financing Transaction proceeds,
it is expected that a significant portion of current liabilities
and financial debt will be converted into equity.
Whilst the board of the Company is hopeful of a satisfactory
outcome, there can be no certainty that the Financing Transaction
will proceed. Without access to the additional capital which is
proposed to be provided by the Investor, the Company is unlikely to
be able to continue to trade and would very likely become insolvent
and be placed into administration.
Update on Formal Sale Process
The Company announced on 18 April 2023 the commencement of a
strategic review and formal sale process under the Takeover Code
(the "Formal Sale Process"). Whilst the Financing Transaction has
been the Company's primary focus, the Company remains in
discussions under the Formal Sale Process with strategic players in
the radiotherapy sector. There can be no certainty that any offer
will be made for the Company, or even proposed, or as to the terms
of any proposal or offer that may be made.
Other implications of the Takeover Code
Under Rule 21 of the Takeover Code, whilst the Company remains
in receipt of an approach from or in discussions with potential
offerors, as defined in the Takeover Code, certain elements of the
Financing Transaction may constitute frustrating action under Rule
21 of the Takeover Code. Accordingly, should this still be
relevant, the Company will seek either consent from any potential
offeror or will seek the approval of shareholders at a General
Meeting to implement such elements of the Financing
Transaction.
In addition, as set out in the announcement of 17 July 2023, the
implementation of certain aspects of the Financing Transaction
might require the granting by the Panel on Takeovers and Mergers of
a waiver of certain obligations under Rule 9 of the Takeover Code
and the approval of independent shareholders of the Company at a
general meeting of such a waiver.
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 Tel: +44 (0) 20 3328
Finance) 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDMTBMTMTJTTRJ
(END) Dow Jones Newswires
October 23, 2023 02:04 ET (06:04 GMT)
Advanced Oncotherapy (LSE:AVO)
Historical Stock Chart
From Aug 2024 to Sep 2024
Advanced Oncotherapy (LSE:AVO)
Historical Stock Chart
From Sep 2023 to Sep 2024