Advanced Oncotherapy PLC (AIM:AVO), developer of next-generation proton therapy system for cancer treatment LIGHT, has entered into secured convertible loan note agreements to raise £5mln from new and existing investors and certain directors of the AIM-listed company.
Total funds of £3.8mln have been received from investors as of March 1, with the balance of funds due to be received shortly save for £500,000 from executive chairman Michael Sinclair, due mid-March.
The company further announced that a £2.9mln facility provided in July 2022 by a French counterparty has been converted to notes and warrants with a minimum conversion price of 25p.
Warrants to subscribe for 1.25mln new ordinary shares will also be issued on or around March 3 to the French counterparty with an exercise price of 25p per share, exercisable until March 3, 2026.
The funds raised will further strengthen the company's balance sheet and contribute to the funding for progressing the assembly, documentation, verification and validation activities.
The funding received from the secured convertible note provides the company with a cash runway until the end of April 2023.
Per the RNS, Advanced Oncotherapy is taking steps to raise additional financing, both dilutive and non-dilutive. These financing options involve further possible equity financings, the quantum and timing of which will also depend, inter alia, on the outcome and the timing regarding the non-dilutive financing options.
In the absence of additional funding the company will need to take steps to extend its cash runway beyond the end of April 2023, including further cost reduction initiatives.