Disposal of ORL ...

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RNS Number : 0739G

Advanced Oncotherapy PLC

18 November 2015

 

ADVANCED ONCOTHERAPY PLC

("Advanced Oncotherapy" or the "Company")

 

Disposal of Oncotherapy Resources Ltd

 

Advanced Oncotherapy (AIM: AVO), the developer of next-generation proton therapy systems for cancer treatment, announces that it has disposed of its subsidiary, Oncotherapy Resources Ltd ("ORL"), for a total cash consideration of £100,000. An initial cash payment of £75,000 has been received with the remainder to be paid on the first anniversary of the disposal.

 

ORL focuses on supplying a fully mobile managed service delivering electronic brachytherapy throughout the UK and Ireland for a range of clinical conditions, but most notably breast cancer and colorectal cancer. The business has been purchased by Xstrahl, a designer and manufacturer of X-Ray therapy systems for use in the treatment of cancer and dermatological disorders, as well as a pioneer in the development of X-Ray systems for pre-clinical radiation biology research.

 

In 2014 Advanced Oncotherapy announced that it would re-focus resources solely on the development of its Proton Therapy technology, beginning a review of strategic options for this subsidiary. For the year ended 31 December 2014 ORL recorded revenues of £106,378 and a loss on ordinary activities before taxation of £599,883.

 

Sanjeev Pandya, CEO of Advanced Oncotherapy, commented: "Last year, we made a decision to reorganise the business around our proton therapy system. The disposal of ORL is an important part of this refocussing and the disposal of the Folkestone property will mark the final stage of this process.

 

"We have made considerable progress in the development of the LIGHT system since this decision was made: we have secured substantial financial support from our investors, made additional commercial sales, signed an operational agreement for our Harley Street site and made the extensive technical advances needed to ensure the successful deployment of our first LIGHT system. I am very pleased with the progress of the business and look forward to providing further updates."

 

Advanced Oncotherapy Plc	www.avoplc.com
Sanjeev Pandya, CEO	Tel: [phone]
Nicolas Serandour, CFO
Westhouse Securities (Nomad & Joint Broker)
Antonio Bossi / David Coaten	Tel: [phone]
Beaufort Securities (Joint Broker)
Jon Levinson / Elliot Hance	Tel: [phone]
Walbrook PR (Financial PR & IR)	Tel: [phone] or [e-mail]
Paul McManus / Anna Dunphy	Mob: [phone] / Mob: [phone]

 

 

About Advanced Oncotherapy Plc www.avoplc.com

 

Advanced Oncotherapy is a provider of particle therapy with protons that harnesses the best in modern technology. As a result, Advanced Oncotherapy will offer healthcare providers affordable systems that will enable them to treat cancer with an innovative technology as well as better health outcomes and lower treatment related side effects.

 

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 accelerates protons to the energy levels achieved in legacy machines but in a unit that is a fraction of the size and significantly lower in cost. This compact configuration delivers proton beams in a way that facilitates a greater precision and electronic control which is not achievable with older technologies.

 

The Company has signed two purchase agreements with Sinophi Healthcare Limited for the LIGHT proton therapy systems to be installed in hospitals in China. There are also four additional framework agreements and further Letters of Intent from other healthcare providers.

 

The Company has also signed a joint venture agreement with CircleHealth, owned by AIM-listed Circle Holdings plc to operate the Company's proton beam cancer therapy centre in Harley Street.

 

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.

 

 

This information is provided by RNS

The company news service from the London Stock Exchange

 

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