Financing partnership agreement with DiaMedCare AG

RNS Number : 6893K

Advanced Oncotherapy PLC

06 January 2021

 

Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of this announcement, this information is now considered to be in the public domain.

6 January 2021

ADVANCED ONCOTHERAPY PLC

("Advanced Oncotherapy" or the "Company")

Lessor financing partnership agreement with DiaMedCare AG

Advanced Oncotherapy (AIM: AVO), the developer of next-generation proton therapy systems for cancer treatment, is pleased to announce a partnership agreement with DiaMedCare AG ("DiaMedCare"), the globally active asset financing partner in the life sciences and other innovative technology sectors. Under the terms of the agreement, Advanced Oncotherapy will be able to offer its customers easier access to the Company's LIGHT system through a flexible financing solution that reduces the need for large initial upfront payments from customers. The partnership agreement will cover projects in Europe and the United States, in line with the Company's aim to democratise proton beam therapy.

This partnership is a key step forward in the Company's commercialisation strategy as it offers Advanced Oncotherapy's customers the opportunity to access LIGHT systems at a much more affordable price. DiaMedCare's leasing solutions work very well with Advanced Oncotherapy's business model, given LIGHT's modularity and easy installation. This partnership will allow for the democratisation of proton therapy by deploying LIGHT systems in smaller clinics and urban environments compared with other systems on the market that require large installation sites and significant shielding.

Under the terms of the partnership agreement, DiaMedCare will acquire LIGHT systems and lease them back to the Company's customers that are commissioning the LIGHT system for oncology treatments. In addition, DiaMedCare will also be able to bridge manufacturing costs until delivery of the LIGHT system to customers.

The terms of any financing solutions provided by DiaMedCare will be specific to each project and will be subject to definitive agreements being entered into between the Company, DiaMedCare and the customer.

Kreske Nickelsen, Partner at DiaMedCare, commented:

"We are very happy to support Advanced Oncotherapy in bringing LIGHT systems to market much faster and more efficiently. Today, legacy proton therapy systems are usually associated with high upfront capital costs that can introduce a significant hurdle to adoption, particularly for many smaller treatment centres. Thanks to its modular design, its lighter weight and its improved proton efficiency, Advanced Oncotherapy's LIGHT systems are a true innovation for the market of proton therapy. DiaMedCare's tailor-made lease financing solutions for Advanced Oncotherapy's customers will eliminate large upfront payments for the system and will make proton therapy more accessible to local, smaller hospitals. We are convinced that our innovative financing will strongly enhance the future growth of Advanced Oncotherapy."

Nicolas Serandour, CEO of Advanced Oncotherapy, commented:

"We are pleased to sign this flexible financing agreement with such an experienced and specialised partner as DiaMedCare to support future sales of our LIGHT systems. The modularity of the LIGHT system allows Advanced Oncotherapy to offer its customers this unique financing opportunity and enable wider access to the LIGHT system. We believe this partnership will significantly increase our pipeline of sales opportunities and democratise proton beam therapy."

The Company intends to release a technical update announcement on Monday, 11 January 2021.

- ENDS -

Advanced Oncotherapy plc	www.avoplc.com
Dr Michael Sinclair, Executive Chairman	Tel: [phone]
Nicolas Serandour, CEO
Allenby Capital Limited (Nomad and Joint Broker)
Nick Athanas / Liz Kirchner (Corporate Finance) Amrit Nahal / Matt Butlin (Sales & Broking)	Tel: [phone]
SI Capital Ltd (Joint Broker)
Nick Emerson	Tel: [phone]
Jon Levinson	Tel: [phone]
FTI Consulting (Financial PR & IR)	[e-mail]
Simon Conway / Rob Winder	Tel: [phone]

Notes for Editors

About Advanced Oncotherapy Plc www.avoplc.com

Advanced Oncotherapy, 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 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 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.

About DiaMedCare www.diamed.care  

DiaMedCare AG ("DMC") is a globally active financing specialist for innovative technologies and   equipment. The company was co-founded and is chaired by Prof. Erich Reinhardt, former CEO of Siemens Healthcare, a Siemens AG subsidiary . DMC provides tailor-made CAPEX financing solutions for companies which are starting commercialisation of new products and enables them to offer their customers product/market-specific "equipment-as-a-service" solutions via pay-per-use, renting or subscription models. Backed by large institutional investors, DMC offers a broad industry network and know-how and actively supports high-growth companies to accelerate the market entry of their innovations.

 

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