Advanced Oncotherapy Plc (LON:AVO), the developer of next-generation proton therapy systems for cancer treatment, announced today that in relation to the announcement dated 7 December 2017 and following the passing of the resolution proposed for the vote of the Company’ shareholders on 23 January 2018, the Company has been informed by Yantai Cipu that the Chinese authorities have authorised the transfer from China of the £13,500,000 payable by Yantai Cipu for the subscription for 45,000,000 new ordinary shares of £0.25 each to be issued by the Company to Yantai Cipu (the “Subscription”) at £0.30 per share (the “Subscription Price”).
As a consequence of the completion of the Subscription by Yantai Cipu, and as detailed in the circular dated 22 December 2017 (the “Circular”), the placing of 10,868,782 new ordinary shares with new and existing investors at the Subscription Price (the “Placing”), as well as the conversion of the loan made by Swedish Investors by way of issue of 13,697,697 new ordinary shares (the “Conversion”), have also been completed.
Application has been made for admission to trading on AIM (“Admission”) of the 69,566,479 new ordinary shares deriving from the Subscription, the Placing and the Conversion and it is expected that Admission will occur on or around 22 February 2018. Following Admission, the total number of ordinary shares in issue will be 150,501,673 and Yantai Cipu will hold 29.90% of the enlarged issued share capital of the Company.
Yantai Cipu has also informed Advanced Oncotherapy Plc that they are in advanced negotiation with a major medical equipment and pharmaceutical distribution company in China for a collaboration to accelerate and strengthen their market access in the People’s Republic of China, Hong Kong, Macau, Taiwan and South Korea (the “Territories”). The Company and Yantai Cipu have agreed that it is in the best interest of the Company and its shareholders to extend the Long Stop Date for the Distribution Agreement until 31 March 2018 to enable the satisfactory completion of the negotiations with the new participant. The commitment of Yantai Cipu vis-à-vis the Distribution Agreement is unchanged, and the receipt of the £16,500,000 payment from Yantai Cipu relating to the commercial agreement with Yantai Cipu also announced on 7 December 2017 is not conditional on the completion of negotiations with the distribution company. The receipt of funds in relation to the commercial agreement is subject to approval from the Government of the People’s Republic of China for the transfer of monies to the United Kingdom.