Advanced Oncotherapy PLC Update on Financing Discussions (0936Z)
09 January 2024 - 8:00PM
UK Regulatory
TIDMAVO
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 GBP28
million owed to trade and other unsecured creditors and GBP41
million [1] 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
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.
[1] Excluding value of embedded derivatives
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