Advanced Oncotherapy Plc (LON:AVO), the developer of next-generation proton therapy systems for cancer treatment, announces that further to the Company’s announcement of 3 April 2018, the Company has received from Yantai Cipu, through its affiliated entity Liquid Harmony, £6.5 million as the first payment relating to the Distribution Agreement announced on 7 December 2017. The Company has been advised by Liquid Harmony that the balance of £10.0 million will be received in the coming weeks.
The proceeds from the above payment will be used towards the repayment of the loan made to the Company by Blackfinch Investment Ltd (“Blackfinch”) through its subsidiary Henslow Trading Limited, for a total aggregate nominal value, including interest, of £6.7 million (the “Loan”).
In addition, the Company and Blackfinch have agreed to set at 70p the exercise price of the batch of 1,000,000 warrants issued by the Company to Blackfinch on 24 March 2017 in relation to the Loan.
After repayment of the Loan by the Company, Blackfinch has agreed to release the security it held on the Company’s lease for 141-143, Harley Street and on certain other equipment of the Company. All the assets of the Company are now free of any security arrangement.
Commenting, Nicolas Serandour, CEO of Advanced Oncotherapy Plc, said: “We appreciate the flexibility demonstrated by Blackfinch who extended the maturity of the Loan on the same terms. We have been impressed by their seriousness in understanding our technology.”