29 February 2024
ADVANCED ONCOTHERAPY
PLC
("Advanced Oncotherapy", "AVO" or the "Company")
Further update on financing
discussions
Further to the Company's
announcement released on 1 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.
On 9 January 2024 and 1 February
2024 the Company announced, inter
alia, that it was continuing to work on its recapitalisation
plan with the third-party investor (the "Investor") that it entered into a
non-binding term sheet with on 14 November 2023 (the "Proposed Financing Transaction").
Discussions with the Investor on the Proposed Financing Transaction
have, since 1 February 2024, continued to make progress and the
Investor has re-confirmed their continued commitment to the
Proposed Financing Transaction. However there have been further
delays encountered with the Proposed Financing Transaction and the
initial tranche of funding has, as at the date of this
announcement, not been received.
The Company and the Investor are now
working towards the initial tranche of funding, which is still
expected to be in the region of $15 million, being received by the
end of March 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 9 January 2024, the Company has been carefully managing
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 1 February 2024 the Company's shares remain
suspended from trading on AIM.
Further announcements will be made
at the appropriate time.
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Advanced Oncotherapy Plc
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www.avoplc.com
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Dr. Michael Sinclair, Executive
Chairman
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Tel: +44
(0) 20 3617 8728
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Nicolas Serandour, CEO
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WH
Ireland Limited (Financial
adviser)
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Tel: +44
(0) 20 7220 1666
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Antonio Bossi / James
Bavister
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AVOPLC@whirelandcm.com
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Allenby Capital Limited (Nomad
and Joint Broker)
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Nick Athanas / Piers Shimwell
(Corporate Finance)
Amrit Nahal / Matt Butlin (Sales
& Corporate Broking)
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Tel: +44
(0) 20 3328 5656
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SI
Capital Ltd (Joint
Broker)
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Nick Emerson
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Tel: +44
(0) 1483 413 500
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Jon Levinson
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Tel: +44
(0) 20 3871 4066
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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.