Update on Financing Discussions

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 £28 million owed to trade and other unsecured creditors and £41 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: [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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[1] Excluding value of embedded derivatives

 

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