Advanced Oncotherapy PLC Further update on financing discussions

RNS Number : 0244J

Advanced Oncotherapy PLC

02 April 2024

 

2 April 2024

ADVANCED ONCOTHERAPY PLC

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

 

Further update on financing discussions

 

Further to the Company's announcement released on 29 February 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.

 

Discussions with the Investor on the Proposed Financing Transaction have, since the release of the Company's announcement on 29 February 2024, continued to make progress. However there have been further delays encountered with the Proposed Financing Transaction and the initial tranche of funding was not received by the Company by the end of March 2024 as previously anticipated.

 

The Company and the Investor are working towards the initial tranche of funding, which is still expected to be in the region of $15 million, being received during April 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 29 February 2024, the Company has continued to carefully manage its working capital position and its creditors. 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 29 February 2024 the Company's shares remain suspended from trading on AIM.

 

Further announcements will be made at the appropriate time.

 

Capitalised terms in this announcement have the same meaning given to them in the Company's announcement of 29 February 2024.

 

Advanced Oncotherapy Plc	www.avoplc.com
Dr. Michael Sinclair, Executive Chairman	Tel: [phone]
Nicolas Serandour, CEO
WH Ireland Limited (Financial adviser)	Tel: [phone]
Antonio Bossi / James Bavister	[e-mail]
Allenby Capital Limited (Nomad and Joint Broker)
Nick Athanas / Piers Shimwell (Corporate Finance) Amrit Nahal / Matt Butlin (Sales & Corporate Broking)	Tel: [phone]
SI Capital Ltd (Joint Broker)
Nick Emerson	Tel: [phone]
Jon Levinson	Tel: [phone]

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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