Update on ScandiNova collaboration

RNS Number : 3335J

Advanced Oncotherapy PLC

02 April 2015

 

2 April 2015

ADVANCED ONCOTHERAPY PLC

("Advanced Oncotherapy" or the "Company")

Update on ScandiNova Collaboration and Supplemental Agreement

Update on ScandiNova collaboration

Advanced Oncotherapy (AIM: AVO), the developer of next-generation proton therapy systems for cancer treatment, announces that in reward for delivering the modulators for the Company's proprietary LIGHT system ahead of schedule, the Company has agreed to issue ScandiNova Systems AB ('ScandiNova') 2,807,018 ordinary shares at a price of 7.125p ("Shares") in lieu of a payment of £200,000. This award recognises ScandiNova as a key partner in helping the Company build subsequent machines.

ScandiNova entered into a collaboration with the Company in July 2014 to develop and manufacture the high energy systems that will power the units of the LIGHT system. ScandiNova specialises in the development of solid state controlled power systems which require about one third of the space and are 30% more efficient than those used in standard, older technology and contributes to making the LIGHT system considerably smaller, more efficient and less expensive than existing proton therapy units which are either installed or under construction around the world.

Commenting on the agreement, Sanjeev Pandya, CEO of Advanced Oncotherapy, said: "Awarding these Shares to one of our key partners recognises the speed with which they have developed and supplied this key component of the LIGHT system. Becoming shareholders confirms the strong partnership we have formed with ScandiNova during the process of completing our first LIGHT system."

Supplemental Agreement with Braham AG ("Brahma")

In accordance with the share purchase agreement for ADAM SA announced on 25 September 2013 and as referred in the chairman's statement in the 2013 Annual Report, Brahma, the vehicle of the Colussi family, the vendor of ADAM, are entitled to be issued with additional shares in AVO as part of the consideration to maintain their shareholding at 25.1%.

Following discussions between the parties, Brahma has agreed, by way of a Supplemental Agreement, to take their current entitlement to 86 million shares as 40 million Shares and 46 million, 5 year warrants ("Warrants"). The Warrants are exercisable at yesterday's closing mid-price of 7.125p per share.

Brahma's remaining entitlement to any additional shares and warrants will be satisfied once a further £1.9 million of equity capital is raised. The issue of further equity to Brahma will be based on the same ratio of shares and warrants as announced today, with the warrants exercisable at the closing market price of the shares on the day before their grant.

Commenting on this, Nicolas Serandour, CFO, said: "The exercise of these warrants incorporated into this arrangement instead of the issue of ordinary shares will further strengthen our balance sheet. We very much appreciate the continued support and confidence of Brahma and the Colussi family."

Application has been made for the 42,807,018 Shares to be admitted to trading on AIM ("Admission") and it is expected that Admission will occur on or about 9 April 2015. The Shares will rank pari passu in all aspects with the existing ordinary shares of the Company.

Total voting rights

Following Admission, the Company's enlarged issued share capital will comprise 1,074,109,207 ordinary shares, with voting rights. The Company does not hold any ordinary shares in treasury. Therefore the total number of ordinary shares in the Company with voting rights will be 1,074,109,207. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

Related Party Transaction

Brahma is classified as a Related Party, as defined in the AIM Rules. The entering into the supplemental agreement by the Company is therefore classified as a transaction with a related party for the purposes of the AIM Rules. In accordance, therefore, with the AIM Rules, the directors of the Company, having consulted with the Company's nominated adviser, Westhouse Securities Limited, consider that the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned.

Advanced Oncotherapy Plc	www.avoplc.com
Sanjeev Pandya, CEO	Tel: [phone]
Nicolas Serandour, CFO
Westhouse Securities (Nomad & Joint Broker)
Antonio Bossi / David Coaten	Tel: [phone]
Beaufort Securities (Joint Broker)
Saif Janjua / Jon Levinson	Tel: [phone]
Walbrook PR (Financial PR & IR)	Tel: [phone] or [e-mail]
Paul McManus / Anna Dunphy	Mob: [phone] / Mob: [phone]

About Advanced Oncotherapy Plc www.avoplc.com

Advanced Oncotherapy's team based at CERN in Geneva focuses on the development of a proprietary proton accelerator called Linac Image Guided Hadron Technology (LIGHT). LIGHT accelerates protons to the energy levels achieved in legacy machines but in a unit that is a quarter of the size and between a quarter and a fifth of the cost. This compact configuration delivers proton beams in a way that facilitates a greater precision and electronic control which is not achievable with older technologies.

Advanced Oncotherapy is a provider of particle therapy with protons that harnesses the best in modern technology. As a result, Advanced Oncotherapy will offer healthcare providers affordable systems that will enable them to treat cancer with an innovative technology as well as better health outcomes and lower treatment related side effects.

The Company has signed a purchase agreement with Sinophi Healthcare Limited for one LIGHT proton therapy system to be installed in a hospital in China and has further Letters of Intent from other healthcare providers.

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.

 

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