Advanced Oncotherapy to raise GBP37.4mln as first proton beam therapy nears completion


Advanced Oncotherapy PLC (LSE:AVO) has proposed a GBP37.4mln equity fundraise as it moves towards completing its first LIGHT proton therapy system, with a 230MeV beam expected by the end of 2021.

The funds are being raised from new and existing investors in a placing and subscription priced at 40p per share, a premium of 17% to the average closing middle market price over the past 30 days.

Advanced Oncotherapy said it intends to use the net proceeds of the share issue to continue the assembly, documentation, verification and validation activities for the first LIGHT system, as well as purchasing the remaining components of the system including payments due to existing supplier Cosylab DD for its services.

In conjunction with the fundraise, the company has entered into a new development and supply agreement with Cosylab.

A developer, manufacturer and integrator of controls systems in particle therapy facilities and large physics facilities, Cosylab has been providing certain services relating to the development, manufacturing and supply of the Light Room control system within the LIGHT system.

Cosylab has agreed to receive 2.49mln new ordinary shares in settlement of fees owed and has also subscribed for 8.65mln shares at the issue price, agreeing not to dispose of its subscription shares before 17 July 2024.

Philippe Glatz, a professional investor with significant interests in the health and life science sector, who is also an existing significant shareholder in the company, is a cornerstone investor in the subscription, with other investors including Finland’s Ahlstrom Capital and Paris-based DNCA Investments, also an existing major shareholder.

Nicolas Serandour, chief executive of Advanced Oncotherapy, said: “This proposed equity fundraise is the largest in the company’s history and it will significantly bolster the company’s balance sheet as we remain on track to deliver the first LIGHT system in the remainder of this year.

“The company has also made significant progress on the business development front in the last 18 months, despite the impact of COVID-19, having signed four commercial deals. We believe, therefore, that this proposed fundraise also recognises the potential for the LIGHT system to deliver on the company’s mission of democratising proton therapy as an effective option for the treatment of cancer.”

In addition to the placing and subscription, a total of 6,470,880 new ordinary shares are being issued by the company for non-cash consideration, including Cosylab’s supplier fee shares, as well as director fee share, the bonus shares and the adviser fee shares.

There will also be 84.9mln warrants to subscribe for new ordinary shares also issued, exercisable at 60p per share for a period of 36 months following admission.


Please enter your comment!
Please enter your name here