Advanced Oncotherapy PLC (AIM:AVO), the developer of LIGHT, the next-generation proton therapy system for cancer treatment, has announced an equity fundraise of £1.5mln before expenses.
The company said the fundraise has been conducted through a direct subscription for a total of 6,000,000 new ordinary shares at a price of 25p each. The shares have been subscribed for by an existing institutional shareholder.
The company said the net proceeds of the subscription will be used to support its operations having successfully achieved a fully operational LIGHT accelerator operating at 230 MeV in September 2022, and for general working capital purposes.
The issue price represents a premium of 49.3% to the company's closing middle market price of an ordinary share on 9 December 2022. Once issued, the subscription shares will rank pari passu in all respects with the existing ordinary shares of the company.
Under the terms of the share subscription, warrants to subscribe for 12,000,000 new ordinary shares will also be issued to the subscriber by 15 June 2023 with an exercise price of 25p per share, exercisable until 15 December 2027, subject to the company being granted the relevant share authorities at an Extraordinary General Meeting to be scheduled in the first half of 2023.
In the event that the number of subscription shares held by the subscriber on the warrant issue date has decreased compared to the number of subscription shares issued to them, the number of warrants to be issued to the subscriber will be adjusted accordingly with the number of warrants to be issued to the subscriber being equal to 200% of the number of subscription shares held by the subscriber on that date.