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Quoted Micro 24 April 2023
Valereum (VLRM) has sold Bitcoin mining assets to Aquis new entrant Vinanz (BTC) in return for 27.3 million shares at 3p each. This gives Valereum a 23.5% stake in Vinanz, which plans to become a Bitcoin mining company with facilities operated by third parties in the US and Canada. The company will also consider mining other cryptocurrencies. The Vinanz share price ended the week at 3.5p. There was one trade of 30,000 shares at 3.26p a share.
E-commerce technology provider Samarkand (SMK) says 2022-23 revenues will be around £17m and the loss has been reduced. VSA forecasts a small positive EBITDA in 2023-24.
SulNOx Group (SNOX) says 2022-23 revenues more than quintupled to £203,000. There was £525,000 in cash at the end of March 2023.
Equipmake Holdings (EQIP) has agreed a partnership with H55 to develop electric aircraft technology. Switzerland-based H55 will use the company’s electric motors in its two-seater electric trainer for pilot training.
In the first three months of 2023, Guanajuato Silver (GSVR) reported record quarterly silver production of 938,000 ounces equivalent. VSA forecasts full year production of 4.7 million ounces of silver equivalent.
Goodbody Health Inc (GDBY) has decided to leave Aquis and the share price slumped 44.6% to 0.9p. It also reported a fall in full year revenues from £17.1m to £10m and an increased loss of £4.9m.
Tap Global Group (TAP) has increased revenues and users since reversing into an Aquis shell earlier this year. First quarter revenues were £1.2m, compared with £250,000 in the corresponding period last year. The regulated cryptocurrency app company increased users by 30% to 144,305.
Coinsilium Group (COIN) has raised £258,000 at 1.5p a share, with warrants attached that have an exercise price of 3p.
Chris Akers has raised his stake in Semper Fortis Esports (SEMP) from 4.57% to 19.5%. The share price jumped by one-fifth to 0.15p. The April 2021 floatation price was 1p. Chapel Down Group (CDGP) finance director Rob Smith bought 407,462 shares at an average price of 34.7p, taking his stake to two million shares. Hadron Capital, which was founded by Fenikso (FNK) non-exec director Marco D’Attanasio, has acquired 1.2 million shares at 0.6p each in Fenikso.
AIM
Sureserve (SUR) is recommending a bid from Cap10 4NetZero Bidco, which is a vehicle for private equity company Cap10 Partners. The 125p a share bid values Sureserve at £214m and that is the highest share price since the company floated as Lakehouse in 2015. Cap10 believes that taking the compliance and energy services provider company private will make it easier to focus on long-term goals.
Proton therapy cancer treatment developer Advanced Oncotherapy (AVO) announced a strategic review. A Nasdaq listing is being considered, which could involve selling the business to an existing Nasdaq company. There are no current discussions and cash is running out. Management hopes to obtain additional working capital by issuing more loan notes. That could extend the company’s cash until the end of May.
Pizza restaurants franchiser DP Poland (DPP) increased first quarter like-for-like sales in Poland by 19% and in Croatia by 16%. There are signs that food inflation is easing. However, additional investment in TV marketing will mean that the company will continue to lose money in 2023.
Business process outsourcing firm iEnergizer (IBPO) plans to cancel is AIM quotation and a general meeting will be held on 16 May to gain shareholder approval. As EICR (Cyprus) owns 82.7% that is a formality. The lack of free float has hampered liquidity and the costs of the quotation outweigh any benefits. Management expects to leave AIM on 26 May. There are plans for a matched bargain facility.
Unikmind has increased its bid for cyber security software provider Kape Technologies (KAPE) from 285p to 290p ($3.60) a share and some of the vendors of past acquisitions have agreed to accept.
Property bridging loans provider Vector Capital (VCAP) reported a slightly better than expected pre-tax profit for 2022. Management, though, is being cautious about lending this year. There was a £200,000 provision for doubtful debts, but the pre-tax profit was still £100,000 better than forecast at £2.8m. The total dividend is 2.53p a share. The average loan book was 27% higher than the previous year. This year the loan book could fall because of higher standards for new lending.
Woodbois (WBI) says that the lender to its Denmark-based Woodgroup timber trading subsidiary has given notice on a $6m lending facility. The facility provided by Sydbank is fully drawn, but there is also $3.1m in cash deposits with Sydbank, which wants a refinance plan by the end of May. Premier Miton subsequently sold its 9.96% stake.
Environmental and life sciences technology company DeepVerge (DVRG) says that revenues have been incorrectly recognised. That means that the 2022 figure will be 45%-50% lower than the £17.2m previously flagged. Some of the expected revenues have been delayed while others will not be recognised. The order book is more than £10m and this will be recognised in 2023 and 2024. There is £1m in the bank and more funding will be required.
Xeros Technology (XSG) is winning new business, but cash is declining. The 2022 figures were in line with expectations and cash was £6.5m. finnCap believes that the cash should last until the second quarter of 2024. That is despite the 2023 loss forecast being increased to £4.8m. The progress of the launch of a domestic washing machine using Xeros filtration technology by a partner has been slower than hoped. Breakeven could still be achieved late in 2024.
Dekel Agri-Vision (DKL) says that the quantity and quality of raw cashew nuts acquired for its new facility are in line with expectations and the pricing is better than anticipated. Average production rates have increased to 10 tonnes/day.
Tertiary Minerals (TYM) has commenced its latest exploration programme for the Lubuila copper project in Zambia following the ending of seasonal rains.
MAIN MARKET
Interim revenues at J Smart (Contractors) (SMJ) slumped from £5.16m to £2.12m, while pre-tax profit dived from £6.33m to £260,000, although the corresponding period included a £6.06m disposal gain. The interim dividend is 0.96p. Net assets are £123.7m, but this would have been lower if there had been a property revaluation at the end of the period.
Fourth quarter revenues for kitchenware retailer ProCook Group (PROC) were 10% lower than the same time last year, with high street sales flat – a new store was opened in Kingston-upon-Thames. There was a 65% increase on the previous quarter. Full year revenues were 10% lower at £62.3m and ProCook will breakeven.
Andrew Hore
Quoted Micro 6 March 2023
Invinity Energy Systems (IES) is repaying the remaining $2.1m of its $2.5m convertible loan facility provided by RiverFort Global Opportunities out of the proceeds of the recent placing. There is a 10% redemption premium, making the total cost £1.92m. That stops dilution by the issue of six million shares. Related warrants can be exercised at 32p a share. There are 1.35 million warrants in issue with a further 499,980 warrants to be issued.
Cadence Minerals (KDNC) says the Hastings Technology Metals share price has fallen thereby reducing the value of the stake received when Cadence Minerals swapped its 30% stake in mineral concessions in the Yangibana rare earths project. Even so, Hastings is making progress in developing the mine and ore reserves increased by one-quarter to 20.93Mt at 0.9% total rare earth oxide grade. That increases the mine life to 17 years and production could start in 2024. Shipping of iron ore concentrate from the Amapa iron ore project should recommence in the next six months.
KR1 (KR1) had a net asset value of 60.6p a share at the end of January 2023.
SuperSeed Capital Ltd (WWW) had earnings of 6p a share for the fourth quarter and NAV was 102p a share at the end of 2022.
BWA Group (BWAP) is still seeking a cash injection. Some mineral licences may become the subject of joint ventures or be sold. An issue of 5.76 million shares at 0.5p a share to directors partly settles their fees.
Good Energy (GOOD) has started a rooftop solar installation operation.
Fuel additives supplier SulNOx Group (SNOX) says RemNOx Ltd has not taken up the option to acquire a total of 24.08 million shares at 30p each from directors between 6 February and 28 February.
Quantum technology investment company Quantum Exponential Group (QBIT) appointed Stuart Woods as chief operating and strategy officer.
Fenikso Ltd (FNK), formerly Lekoil, received $665,000 as partial repayment of the loan of $51.9m. Creditors are currently more than $2m. The next payment will be out of the February oil production proceeds.
TruSpine Technologies (TSP) has still not received the promised bridge loan facility or a share subscription. A £200,000 loan has been received from a third party. This will provide working capital.
Trading in Wheelsure Holdings (WHLP) shares is suspended because the accounts for the year to August 2022 have not been issued. Talks continue concerning a cash injection.
RentGuarantor Holdings (RGG) has moved to the Apex segment of the Aquis Stock Exchange.
Phoenix Asset Management has slashed its stake in Silverwood Brands (SLWD) from 16.5% to 1%. Miton UK MicroCap Trust increased its stake in IamFire (FIRE) from 8.69% to 9.27%. William Black has taken a 6.11% stake in Western Selection (WESP).
AIM
Accrol (ACRL) has signed a licensing agreement with Unilever, which will enable the tissue products manufacturer to sell a kitchen towel product under the Lifebuoy brand. This is a brand with strong recognition among consumers. This will be a higher priced product than the products currently produced by Accrol. A new paper mill is being built.
AB Traction increased its stake in construction dispute services provider Driver (DRV) from 20.6% to 27.5%. Ruffer has sold its stake.
WH Ireland has upgraded its 2023 forecasts for LifeSafe Holdings (LIFS) after the fire safety products supplier published a full year trading statement. The 2022 revenues were £3.9m, having been £1.3m at the interim stage. US sales are accelerating. The 2023 forecast revenues have been raised from £5.5m to £6.5m with a slight reduction in the loss to £400,000.
Non-executive directors of Inland Homes (INL) have all resigned because of related party issues that they were not informed about at the relevant times. That would leave the residential property developer with one director, so Simon Bennet is staying on for a fortnight so another director can be appointed – if not the shares will be suspended. Founder Stephen Wicks is likely to return to the board. There will be further announcements about the related party issues.
Gold explorer Panthera Resources (PAT) has entered into a conditional arbitration funding agreement with a subsidiary of Litigation Capital Management (LIT) for the damages claim against the Republic of India for breaches of its obligations under the Australia-India bilateral investment treaty. Up to $10.5m will be provided to cover the costs of the claim.
Purplebricks (PURP) has received approaches for the acquisition of the company, or its businesses and the ongoing strategic review has been widened to include a formal sale process.
Hostels operator Safestay (SSTY) generated higher than expected revenues in 2022 as occupancy levels continue to rebuild and reaching 63%. Revenues were £19m, compared with a forecast of £17.9m. A small pre-tax loss is forecast with a move back to profit expected this year.
Proton therapy technology developer Advanced Oncotherapy (AVO) has secured a convertible loan note facility of £4.95m. In return, the lenders will receive a portion of the revenues generated by the proton therapy machine installed in the Harley Street Centre, capped at £2.5m each year over a ten-year period.
Healthcare services provider Totally (TLY) warns that although full year revenues will be in line with expectations increasing costs means that profit will be below forecasts. Canaccord Genuity has cut its 2022-23 pre-tax profit forecast from £5.8m to £3.8m, down from £4m the previous year. Net cash is expected to be £5.5m at the end of March 2023.
Metal Tiger (MTR) is proposing the cancellation of its AIM quotation so that it has more flexibility with its new investment strategy. A general meeting will be held on 20 March for shareholders to vote on the cancellation and the new investing policy. The company will remain listed on ASX.
MAIN MARKET
URA Holdings (URAH) has completed the acquisition of the Gravelotte emerald mine in South Africa. This used to be the largest emerald mine in the world. The mineral resource estimate is 29 million carats and there are 12 other potential targets. The consideration was £100,000 in shares at 2.5p each.
Mass Energy Developments (MED) announced successful capacity market bids from the 9MW Pyebridge synchronous gas-powered flexible generation facility of £60/Kw and £64/Kw per annum.
IQ-AI Ltd (IQAI) says that the FDA has granted orphan drug designation status for gallium maltolate for the treatment of glioblastoma multiforme brain cancer. Enrolment has started on a phase I clinical trail to evaluate safety and dosage.
Andrew Hore
Quoted Micro 24 October 2022
Chapel Down Group (CDGP) had a bumper grape crop in terms of quality and yield. Chapel Down has 750 acres of vines and the harvest was more than 2,000 tonnes, up from 1,400 tonnes last year, with a particularly good crop for sparkling wines. The English sparkling wine market grew by 29% in 2021More than two million bottles of many types of wine can be made from the harvest. A further 38 acres of vines were planted this year with 118 acres planned. More land is being sought. Management wants to double the size of the business by 2026.
Property investor Ace Liberty & Stone (ALSP) launched an open offer to raise £4.56m at 25p a share, which is a big discount to the market price. The share price fell 25.8% to 47.5p. The open offer closes on 14 November and enables existing shareholders to finance the strategy to buy additional properties. Management believes that economic uncertainty will provide opportunities to acquire high yielding properties.
Ananda Developments (ANA) has changed the acquisition terms for the 50% not owned in DJT Plants. The purchase price has been cut from £7.3m to £3.2m, which is payable in shares at 0.925p a share giving the seller Anglia Salads 29.9% of the enlarged share capital. That is double the current share price. The chairman’s £2.3m loan to Ananda will be swapped for convertible loan notes and warrants. DJT is analysing its 2022 field trial crops to determine the amounts of cannabinoids and terpenes contained in the cannabis flowers. This will help the company to decide which cultivars to use. There are international growers interested in purchasing seeds from DJT.
Love Hemp (LIFE) says it will sell all LH Botanicals products and LH Botanicals Ltd, which is owned by Love Hemp chief executive Tony Calamita, does not sell these products and has never traded. An application has been filed to strike the company off the company register.
Hydrogen Utopia International (HUI) has secured a convertible loan facility with Conrad Griffiths, owner of 9.45% of the company. The €650,000 facility is interest free until the beginning of 2023 when the annual interest charge is 5%. The repayment date is 31 December 2025. The conversion price is 20p – based on the exchange rate of €1.14/£.
Invinity Energy Systems (IES) has secured the sales contract for a 10MWh VS3 flow battery system for a solar microgrid in southern California.
Goodbody Health Ltd (GDBY) has signed an agreement with Allied Pharmacies that will add 17 clinics to its network offering diagnostic testing and adds services such as ear wax micro suction.
SulNOx Group (SNOX) has signed up South Africa-based bus company Lowveld Bus Service, which will use SulNOxEco fuel conditioner in its fleet of more than 170 buses.
VVV Resources (LON: VVV) has appointed Jim Williams as an executive director. He was previously a chief executive of AIM-quoted Arian Silver Corporation, which is now known as Alien Metals (UFO). David Rigoll and Simon Clarke have left the board.
Chris Akers has upped his stake in Quetzal Capital (QTZ) from 22% to 23.4%. Investee company Tap Global has added GBPT stablecoin to its cryptocurrency trading platform.
Harry Hyman has increased his stake in Oberon Investments Group (OBE) from 3.08% to 4.15%. Phoenix Asset Management Partners has taken a 16.5% stake in Silverwood Brands (SLWD).
AIM
Semiconductors designer EnSilica (ENSI) generated more than 50% of its revenues from its design and supply division for the first time last year. Revenues increased from £8.61m to £15.3m with design and supply’s contribution jumping from £2.82m to £8.02m. This is down to contracts starting to move from the design to supply stage. A loss was turned into a pre-exceptional profit of £165,000. That is before R&D tax credits of £683,000. EnSilica capitalised £2.2m of development spending last year.
Latest new AIM admission Sondrel (SND) raised £20m at 55p a share and the price rose to 58p in early dealings. The semiconductor designer will spend the money on employing more engineers and accelerate sales. There are more than £300m of revenue opportunities for designing semiconductors. If selected, Sondrel can expect to supply the semiconductor for five years plus. The medium-term target revenues are in excess of £100m.
Revolution Bars (RBG) is acquiring Peach Pubs for £16.5m. Peach Pubs has 21 food-led pubs in the south of England and the Midlands. There should be £1.5m of cost savings from combining the businesses at a minimal cost, but they will not be fully achieved until 2024-25. finnCap has adjusted its 2022-23 forecast for Revolution Bars due to higher energy costs, so the earnings estimate has been reduced by 69% to 0.5p.
Affimer technology developer Avacta (AVCT) is acquiring in vitro diagnostics distributor Launch Diagnostics for £24m, plus up to £13m in performance related earn outs. This acquisition is part of the strategy to build up a European distribution business. Kent-based Launch Diagnostics is a profitable business that supplies diagnostic reagents and instrumentation for pathology applications. A placing at 95p a share will raise £7m and a three-for-365 open offer could raise up to £2m more. A £55m convertible bond issued at 95% of par could raise £52.5m and it is convertible at a 25% premium to the 95p a share placing price.
Gear4Music (G4M) edged up interim revenues by 2% with the growth coming from Europe and the rest of the world. The musical instruments retailer is upgrading its websites and trading is improving, although gross margins are lower.
Tatton Asset Management (TAM) generated inflows of £907m in the six months to September 2022. Assets under management have reached £11.3bn, with a further £1bn of assets under influence. There was an 11% improvement in earnings to 9.8p a share and the interim dividend 10% ahead at 4.4p a share. Inflows are expected to slow and full year expectations have been trimmed, but earnings should improve from 18.6p a share to 19.8p a share.
Logistics Development Group (LDG) has raised its stake in cakes maker Finsbury Food (FIF) from 4.4% to 6.77%. A further £4.17 has been invested at an average of 81p a share. The previous investment was at 69.5p a share, which was just above the low for 2022. Richard Griffiths increased his stake in Logistics Development Group from 7.04% to 8.71%. Logistics Development Group should have received more than £31m for its stake in CareTech.
Learning and development products and services provider Mind Gym (MIND) generated interim revenues 11% ahead at £26.8m with the majority coming from the US. Net cash is £4.5m. The interims will be published on 2 December. A full year pre-tax profit of £2.87m is forecast.
Advanced Oncotherapy (AVO) has raised £6m at 25p a share from Odey Asset Management. The subscription was at a 12% premium to the market price.
Mattress supplier eve Sleep (EVE) has appointed an administrator.
Anthony Laiker has left the Vela Technologies (VELA) board and sold his 6% stake. He was reappointed to the board in July having been a director between 2013 and 2020.
MAIN MARKET
Kitchenware retailer ProCook Group (PROC) says revenues continued to decline in the second quarter, but the rate slowed and there has been growth in early October. Freight costs are falling offsetting the change in exchange rates. Fackelmann Gmbh owns a 9% stake.
LED lighting and wiring accessories supplier Luceco (LUCE) says destocking has happened faster than expected, so the 2022 profit outcome will be lower than anticipated. Underlying operating profit is expected to be £20m-£22m in 2022. Net debt was £46.5m at the end of September 2022.
Carclo (CAR) says interim sales were ahead of the same period last year and slightly better than expectations. However, operating profit is slightly lower than previously. The life sciences division has grown even though two product launches were delayed. There was also increased demand from the aerospace sector.
Motor dealer Lookers (LOOK) outperformed the UK car market in the third quarter and pre-tax guidance has been increased to no less than £75m. Last year’s pre-tax profit was £90.7m, but that benefited from government assistance and a strong used vehicle market. However, a lack of available new cars to sell is holding back the performance of all motor dealers.
An administrator has been appointed to Toople (TOOP) after it failed to secure financing for a proposed acquisition.
Andrew Hore – Quoted Micro 13 April 2020
Suffolk-based brewer Adnams (ADB) returned to profit in 2019. Revenues fell from £78.9m to £74.7m, while a loss of £877,000 was turned into a pre-tax profit of £39,000. Stripping out one-off costs, there was an underlying decline in profit. Investment in the brewery and a new IT system have led to some disruption of the business. There will be no final dividend due to COVID-19 and the subsequent pub closures. There are tangible assets valued at £43.8m, much of which is freehold property and Adnams is in discussions about new lending facilities.
Directors’ pay has been halved and other costs reduced to a minimum.
Ananda Developments (ANA) is formulating responses to the latest questions from the Home Office. The MHRA has also requested a meeting to discuss the application to grow >0.2% THC cannabis. Ananda has a 50% interest in DJT Plants which plans to grow the cannabis in Lincolnshire.
World High Life (LIFE) has gained a quotation on the US OTC market. They started trading on 8 April.
NQ Minerals (NQMI) produced 8,127 tonnes of lead concentrate and 4,609 tonnes of zinc concentrate at the Hellyer mine in the first quarter of 2020. Further production increases are planned. Mining continues in Tasmania and the concentrate can still be shipped.
AIM
Replacement windows supplier Safestyle (SFE) has raised £8.5m at 17p a share and this will provide a strong cash buffer during the COVID-19 outbreak. Banking covenants will be waived for up to six months.
ReNeuron (RENE) has secured a collaboration with a major pharma company for the potential use of the company’s exosomes, derived from the CTX neural stem cell line.
D4T4 Solutions (D4T4) won additional SaaS-based business in the fourth quarter. That has delayed the recognition of revenues and led to a 14% fall in reported revenues to £21.7m. The forecast was for revenues of £26.7m. Pre-tax profit fell from £6m to £5m. There is £12.7m of cash in the bank.
Churchill China (CHH) has decided not to pay a final dividend even though net cash was £15.6m at the end of 2019. Underlying pre-tax profit improved from £9.4m to £11.2m in 2019. Manufacturing operations have been suspended and costs are being reduced. Capital investment in manufacturing and kiln capacity should be completed in the first half of 2020.
Real Estate Investors (REI) says that trading remains strong and it still intends to pay its dividend. Rental collection was good in the first quarter of 2020. Forecasts have been trimmed with nav expected to fall from 67.4p a share to 66.1p a share. That is still well above the share price.
Circassia Pharma (CIR) is transferring the US commercial rights to Tudorza and Duaklir to AstraZeneca. The $149.9m loan from AstraZeneca (and accrued interest) will be offset against the consideration for the transfer. AstraZeneca still owns 18.9% of Circassia. The focus of Circassia will be the Niox respiratory diagnostic platform.
Advanced Oncotherapy (AVO) has raised a further £14.9m at 25p a share. This will be spent on development and gaining approval for its LIGHT proton therapy system.
Cinema operator Everyman Media (EMAN) has raised £17.5m at 100p a share. This will help finance the business while the cinemas are closed.
Upheavals continue at Nostra Terra Oil and Gas (NTOG) with a further general meeting requisitioned and the resignation of chairman Andrew Morrison. A share issue raised £318,000 at 0.25p a share. Chief executive Matt Lofgran has agreed to a 60% reduction in salary until the next significant fundraising.
Trading in the shares of Bould Opportunities (BOU) has been cancelled but it continues to push ahead with a potential biotechnology acquisition.
MAIN MARKET
Aquila Services Group (AQSG) is aiming to at least break even in 2020-21 and maintain a positive cash balance. The figures for the year to March 2020 will not be as good as forecast, although it was profitable. Cost savings by the consultancy services provider include the chief executive standing down and there will be no final dividend.
Avation (AVAP) says that it has received bid interest, but progress has been hampered by COVID-19. The commercial aircraft lessor has $129m in cash and it is offering short-term financial relief to airlines. Management believes that ongoing income should be enough to cover costs for another 12 months.
Car and property bridging finance provider S and U (SUS) is paying a final dividend of 50p a share. That is lower than the previous year’s final of 51p a share, but it means the total dividend for 2019-20 is 2% higher. There are signs of reduction in lending in the early weeks of the new financial year.
Flavourings and fragrances supplier Treatt (TET) says interim revenues were 5% lower due to a fall in the price of citrus raw materials. There was growth in other areas with tea revenues 48% higher. There has been strong growth in recent orders because of the use of ingredients in soaps and sanitisers. The factory relocation in the UK will not happen until 2021. Net cash was £6.5m at the end of March 2020. The interims will be published on 12 May.
Argo Blockchain (ARB) generated revenues of £6m in the first quarter of 2020. There was £1.8m generated in March, down from £2.5m in February. The decline was due to lower bitcoin prices and more difficult cryptocurrency mining conditions.
Spinnaker Opportunities (SOP) has raised £40,000 from a loan note issue to two investors. The conversion price is 5p a share. There will be a warrant for every two shares that is exercisable at 5p a share.
Andrew Hore
Advanced Oncotherapy #AVO – Final Results statement plus CEO and Chairmans report
Advanced Oncotherapy (AIM: AVO), the developer of next generation proton therapy systems for cancer treatment, announces audited results for the year ended 31 December 2017, another year of significant technological development and installation of the Company’s first LIGHT system.
Key highlights:
· Successful integration of three of the four key LIGHT system structures significantly reducing technical risk
· Technological development on-track to be capable of treating superficial tumours by the end of Q3 this year
· Science and Technology Facilities Council agreement to establish a UK testing and assembly site
· Harley Street site building work on schedule, first patient treatment expected by the second half of 2020
· Commercial distribution agreement with Yantai CIPU for China and other parts of Asia
· Stronger financial position since 31st December 2017 having secured £33.3m of financing post period end
· Ongoing commercial discussions with sites in the USA, Europe, Asia and Middle East
Nicolas Serandour, CEO of Advanced Oncotherapy, said: “The technological development of our LIGHT system remains on-track and we continue to proceed with a significantly reduced overall technology risk profile. Similarly work at Harley Street remains on schedule and with additional funding through our licence agreement with Yantai CIPU and the equity fundraise in which they and other investors participated we enter into the second half of 2018 from a stronger position.
“In 2018 we expect to fire a proton beam through the first CCL module and ultimately produce a beam capable of treating superficial tumours by the end of Q3 2018. The Board remain confident that we can deliver to these timescales and that we will have the financial resources to do so. On behalf of the Board, we would like to thank all of our shareholders for their continued support and belief, and we look forward to further success ahead.”
Posting of Annual Report & Notice of AGM
The annual report for the year ended 31 December 2017 will shortly be available from the Company’s website at www.advancedoncotherapy.com and will be posted to shareholders shortly together with a notice of Annual General Meeting to be held at 2.30pm on Wednesday, 25 July 2017 at The Royal Society of Medicine, 1 Wimpole Street, London W1G 0AE.
Advanced Oncotherapy Plc |
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Dr. Michael Sinclair, Executive Chairman |
Tel: +44 20 3617 8728 |
Nicolas Serandour, CEO |
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Stockdale Securities (Nomad & Joint Broker) |
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Antonio Bossi / Ed Thomas |
Tel: +44 20 7601 6100 |
Stifel Nicolaus Europe (Joint Broker) |
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Jonathan Senior / Ben Maddison |
Tel: +44 20 7710 7600 |
Walbrook PR (Financial PR & IR) |
Tel: +44 20 7933 8780 or avo@walbrookpr.com |
Paul McManus / Anna Dunphy |
Mob: +44 7980 541 893 / Mob: +44 7876 741 001 |
About Advanced Oncotherapy Plc www.avoplc.com
Advanced Oncotherapy is a provider of particle therapy with protons that harnesses the best in modern technology. Advanced Oncotherapy’s team “ADAM”, based in Geneva, focuses on the development of a proprietary proton accelerator called Linac Image Guided Hadron Technology (LIGHT). LIGHT’s compact configuration delivers proton beams in a way that facilitates greater precision and electronic control.
Advanced Oncotherapy will offer healthcare providers affordable systems that will enable them to treat cancer with an innovative technology as well as lower treatment-related side effects.
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.
CHAIRMAN & CHIEF EXECUTIVE OFFICER’S REPORT
INTRODUCTION
We are delighted to report another year of significant progress in the technological development and installation of our first LIGHT system, the next generation proton therapy system for treating cancer.
In March 2017 we updated shareholders on our expected timelines for achieving certain technical milestones in the development of the LIGHT system. We are pleased to say that we have made considerable advances which not only ensure that we remain on track to deliver according to this timetable, but also that we have significantly reduced the overall technical risk of this project through the successful integration of three of the four key structures.
As a result we have ended the year in a much stronger position through both the achievement of these technological milestones and the announcement in December of a £33.3 million investment, including £16.8 million of equity investments, alongside our commercial distribution agreement with Yantai CIPU Medical Technology Co. Ltd (“Yantai CIPU”) through their affiliated company Liquid Harmony Ltd to market and sell our LIGHT systems across China and certain neighbouring geographies in Asia. The equity funding was completed in February 2018 and we received £16.5 million from Yantai CIPU in May 2018 in respect of the distribution agreement. Some of the funds have been used to repay loans received during 2017 which were used to help fund working capital and LIGHT development costs during 2017.
The Board are therefore confident that we will deliver a proton therapy system that will be capable of treating superficial tumours by the end of Q3 2018, a critical milestone which we believe will mark a significant inflection point for shareholder value.
OUR TECHNOLOGY AND KEY DIFFERENTIATORS
At the core of our business model, we will offer healthcare providers affordable systems that will enable them to treat cancer with an innovative proton therapy technology which offers better health outcomes for patients and lower treatment related side effects. Our LIGHT system (Linac Image Guided Hadron Technology) offers the following advantages:
- Superior proton beam: The LIGHT system uses an innovative linear accelerator rather than a cyclotron/ synchrotron. This means that particle collision with structures within the accelerator is reduced, thus creating less radioactive energy. The results are increased safety and lower shielding requirements, reducing overall installation time and cost;
- Precision: LIGHT’s proton beam can be moved very rapidly, allowing for more accurate temporal and spatial targeting of moving tumours. Furthermore, spot scanning allows a more conformal dose that can be altered to meet individual needs, and beam energy can be adjusted at source, requiring no absorbers or energy reduction devices. This is a unique feature of linear accelerators such as LIGHT and cannot be achieved with commercially available systems;
- Compact, modular and easy to install: While other systems come in one size, LIGHT can be customised due to its modularity. This offers clinics an opportunity to expand their offering to other rooms and / or to increase system strength step by step as clinical needs develop. The fact that new modules can be added to increase output energy at any point reduces the commitment by healthcare providers to high upfront costs for systems that may not be fully utilised;
- Affordability: Due to the modular nature of the system and mass-production manufacturing, LIGHT is well positioned to compete with other proton therapy systems currently available. LIGHT is associated with lower capital, operational, and decommissioning costs;
- City-centre focus: LIGHT’s unique properties allow for implementation in existing clinical sites and densely populated areas where space is scarce. This means making the technology more accessible to patients, ensuring that as many people as possible can benefit from it;
- An integrated system: Full work-flow integration from patient intake, over treatment planning, through to beam delivery, ensures a seamless patient treatment experience.
TECHNOLOGICAL DEVELOPMENT
2017 has seen considerable advancements in the technology development and manufacture of our first LIGHT system. During the year we successfully integrated and tested the first Side Coupled Drift Tube Linac (“SCDTL”) with the Radiofrequency Quadrupole (“RFQ”) and proton source, three of the four key components of the LIGHT system. These achievements have allowed us to significantly de-risk our technological development process. In addition lower power testing of the individual accelerating SCDTL units have met expectations whilst the design of the remaining Coupled Cavity Linacs (“CCLs”) high-speed accelerating structures is well proven and documented.
One of our key milestones for 2017 was the further development of the Patient Positioning System (“PPS”) which is designed to prepare and position patients for the high accuracy and dose sparing proton treatments produced by the LIGHT system. As already confirmed in our latest technological update the Diagnostic Quality CT scanner has been manufactured, and integration testing completed. A real time X-ray verification system has been developed, the robotic treatment chair has been successfully tested, and the scanning magnet subsystem produced. Most importantly, the connectivity between the PPS and the accelerating units has been established and successfully evaluated with system function emulation tools.
During the year we also announced that the LIGHT system’s unique ionisation chamber was received from our partner Pyramid Technical Consultants and is part of our overall safety system, monitoring beam position, spot size and dosage. More recently, at the end of May, we announced successful Time-of-Flight testing showing good results for beam control and adjustment, a key aspect of our ability to offer a system with improved precision and easy adjustment at source to offer accurate and versatile treatments.
In early May we also announced an agreement with the UK Government’s Science and Technology Facilities Council (“STFC”) to establish a UK testing and assembly site for our first operational LIGHT system, within the STFC Daresbury Laboratory in Cheshire, home to the UK’s Accelerator Science and Technology Centre. Building work is now underway to prepare the site to receive the LIGHT system components. We will retain our testing facility at CERN, Geneva where we continue to advance our LIGHT system technological development.
Our main focus now remains on the further development of the LIGHT system and to fire the proton beam through the SCDTLs and the CCL producing a beam capable of treating superficial tumours by the end of Q3 this year.
During 2017, we spent £8.4 million (2016: £8.9 million) to achieve these milestones and other LIGHT development work and this is included in Intangible Assets.
HARLEY STREET
We are very pleased with the progress at our 141/143 Harley Street site. The sub-structural work continues to progress well and we remain on-track to create central London’s first proton therapy centre. We remain confident that the site will be completed in H1 2019 with first patient treatment expected by the second half of 2020.
The freeholder of the site, the Howard de Walden Estate, continues to bear the costs of construction.
A time-lapse video of the construction work on site is available on our website (www.advancedoncotherapy.com) and we are updating this video as work progresses.
FUTURE PLANS FOR COMMERCIALISATION
As we’ve said before the technical development of our first LIGHT system is the key focus of the Group, however we know that we must also be mindful of the commercial opportunities available once this is completed. We must prepare ourselves to respond to the huge worldwide medical need for access to an affordable proton therapy technology that can be easily installed and safely operated in areas of high patient population density.
Due to the nature of our game-changing technology and its key differentiators (as outlined above) we continue to receive substantial interest in the LIGHT system. In the UK we are continuing discussions for a second site in Birmingham, and we remain in ongoing discussions regarding a number of sites in the USA and others across in Europe, Asia and the Middle East.
We have long recognised that China represents a significant opportunity for our technology given the potential need for a significant number of proton therapy centres. Yantai CIPU have already identified 11 potential installation sites for the LIGHT system. We remain confident that there will be a high demand for our LIGHT system given that precision medicine has been listed as one of the strategic industries to receive support in the People’s Republic of China’s 13th Five-Year Plan for economic and social development (2016-20).
In addition, we expect to work with Yantai CIPU to explore opportunities to manufacture parts of the LIGHT system in selected geographic areas and the Board believes the Group will benefit greatly from the knowledge and contacts of the Han family, who ultimately owns Yantai CIPU.
From our current commercial engagements and in discussion with key partners, such as Yantai CIPU, we have observed that the commercial focus of potential customers is on a technology partner that is able to provide an entire solution and not just a standalone medical equipment device isolated from other considerations such as building or financing. Customers are looking for a seamless integration of accelerator and treatment equipment; they are keen to speak to one team who will mobilise the relevant resources from a marketing, service, maintenance, technical and medical expertise; and the solution needs to consider their financial constraints. We are looking to establish additional partnerships like that with Yantai CIPU which allows us to respond to these customer needs. We are also assessing various opportunities for providing vendor financing to our prospective customers to ensure that we not only compete in terms of technology and costs, but also on our ability to provide a whole fully integrated solution.
FINANCING
In July 2017, we announced that a consortium led by one of our longstanding investors, AB Segulah, provided additional financing to the Group through a £3.9 million loan facility. At the same time we agreed with Bracknor to waive the requirement for the Group to drawdown the minimum of 10 convertible loan note tranches and declared that the Group would not intend to use the Bracknor facility in the future. Shares were issued in February 2018 to settle the loans. It was announced in May 2018 that all outstanding loan notes previously drawn down by the Company, as well as the conversion and commitment fees, were satisfied by the issue of new shares simultaneously placed to a Singaporean family office.
The support shown by our Swedish investors during the year allowed us to approach long-term financing options from a stronger position, and so in December we also announced that Yantai CIPU, in addition to providing local knowledge and contacts, would make a significant equity investment in the Group.
Alongside Yantai CIPU’s subscription other investors agreed to subscribe for shares and we raised a total of £16.8 million before expenses. As part of this process we reached an agreement with the consortium to accept repayment of their loan in return for the issue of conversion shares.
Our Board wanted to ensure that dilution of existing shareholders was limited and with this in mind the agreement with Yantai CIPU was structured in such a way that we will benefit from the additional non-dilutive source of funding through the £16.5 million licence fee.
We are also greatly encouraged to see the extent of support from our Board as part of the Subscription and Placing and the degree to which they continued to purchase shares in the Group throughout last year and also the support of a new long-term shareholder M3T PTE Ltd with whom the remaining shares due to Bracknor were placed at the end of last month.
The conclusion of these investments has provided the funding foundations necessary for us to focus on making our proton therapy technology available to patients around the world and to progress towards the production and installation of our first LIGHT system in Harley Street, London.
FINANCIALS
The Group recorded a comprehensive loss of £14.7 million in the year ended 31 December 2017 (2016: £8.7 million), with shareholder funds as at 31 December of £28.7 million (2016: £34.0 million).
Cash and cash equivalents at the year-end were £56,479 (2016: £1,448,524), although these year-end figures do not take into account the post period financing agreements referred to above which have improved the liquidity of the Company.
In February 2018, the Group raised additional equity of £20.9 million through subscriptions, placings and the conversion of debt. As detailed in a circular dated 22 December 2017, included in this was a subscription for £13.5 million by Yantai CIPU.
In addition to this, the Group entered into an exclusive distribution agreement with Yantai CIPU to market and sell Advanced Oncotherapy’s LIGHT system across China, Macau, Taiwan, Hong-Kong and South Korea. Under the agreement, Yantai CIPU made a payment of £16.5 million to the Group, of which the final £10 million have been received in May 2018, completing the total £30 million investment from Yantai Cipu.
Finally, the Group announced in May 2018 that it repaid all the loan made to the Company by Henslow Trading Limited. As a result, all the assets of the Group are now free of any security arrangement.
SCIENTIFIC AND OPERATIONAL EXPERTISE
We have worked hard this year to ensure that we had the best scientific and operational expertise at a Board level to aid us in our dual focus of completing the technological development of the LIGHT system and developing channels for future commercial roll-out of our technology.
During the year we appointed three Non-Executive Directors who bring considerable experience and expertise to our Board: Professor Steve Myers’ who is also Executive Chairman of our fully owned subsidiary, ADAM S.A., held previous roles as Director of Accelerators and Technology at CERN; Hans von Celsing, who has considerable experience in the business development of both radiation and proton therapy companies; and Dr. Nick Plowman a key opinion leader in radiation oncology technology and clinical oncologist at St Bartholomew’s Hospital and Great Ormond Street Hospital.
In addition, the senior management team was reinforced by Ed Lee, who joined as Chief Operating Officer. Ed joined from Optivus Proton Therapy at Loma Linda University, site of the world’s first and longest running commercial proton therapy centre. Dr. Jonathan Farr also joined us from the St Jude Children’s Research Hospital, a world-renowned institution in paediatric oncology, as Director of Medical Physics.
OUTLOOK
We know that there are millions of patients worldwide who could potentially benefit from, and deserve to have, access to the very best affordable, precision adaptive proton therapy technology. We believe strongly that it is unacceptable that they should have to settle for less than that.
We believe we are ideally placed to address this need given the LIGHT system’s modularity and linear design which lends itself naturally to mass production, shorter manufacturing lead times, easier installation/commissioning and a technology that not just offers significant cost advantages, but clinical advantages too.
The technological development of our LIGHT system remains on-track and we continue to proceed with a significantly reduced overall technology risk profile. Similarly work at Harley Street remains on schedule and with additional funding through our licence agreement with Yantai CIPU and the equity fundraise in which they and other investors participated we enter into the new financial year from a strong position.
In 2018 we expect to produce a beam capable of treating superficial tumours by the end of Q3 2018. The Board remain confident that we can deliver to these timescales. On behalf of the Board, we would like to thank all of our shareholders for their continued support and belief, and we look forward to further success ahead.
Dr Michael Sinclair |
Nicolas Serandour |
Executive Chairman |
Chief Executive Officer |
Consolidated statement of profit or loss and other comprehensive income |
Group |
Group |
For the year ended 31 December 2017 – Financials in £ |
2017 |
2016 |
Revenue |
– |
– |
Cost of sales |
– |
– |
Gross profit |
– |
– |
Administrative expenses |
(14,492,595) |
(13,087,307) |
Operating loss |
(14,492,595) |
(13,087,307) |
Finance income |
– |
9,045 |
Finance costs |
(1,994,891) |
(106,338) |
Loss on ordinary activities before taxation |
(16,487,486) |
(13,184,600) |
Taxation |
2,827,115 |
2,818,050 |
Loss after taxation from continuing operations |
(13,660,371) |
(10,366,550) |
Profit/(Loss) for the year from discontinued operations |
– |
22,100 |
Loss after discontinued operations |
(13,660,371) |
(10,344,450) |
Loss for the period |
||
Equity of shareholders of the parent company |
(13,660,371) |
(10,346,660) |
Non-controlling interests |
– |
2,210 |
(13,660,371) |
(10,344,450) |
|
Other comprehensive income |
||
Items that will not be subsequently reclassified to profit or loss: |
||
Exchange differences on translation of foreign operations |
(1,065,130) |
1,608,705 |
Total comprehensive loss for the year net of tax |
(14,725,501) |
(8,735,745) |
Total comprehensive loss attributable to: |
||
Equity of shareholders of the parent company |
(14,725,501) |
(8,737,955) |
Non-controlling interests |
– |
2,210 |
(14,725,501) |
(8,735,745) |
|
Loss per ordinary share |
||
Basic and diluted |
||
Continuing operations |
(17.55)p |
(17.05)p |
Discontinued operations |
0.00p |
0.04p |
(17.55)p |
(17.01)p |
|
Weighted average number of shares (000’s) |
77,832 |
60,799 |
Consolidated statement of financial position |
Group |
Group |
|
As at 31 December 2017- Financials in £ |
2017 |
2016 |
|
Non-current assets |
|||
Intangible assets |
30,569,979 |
23,355,065 |
|
Property, plant and equipment |
1,180,937 |
1,464,264 |
|
Investment property |
310,000 |
310,000 |
|
Trade and other receivables |
838,887 |
– |
|
32,899,803 |
25,129,329 |
||
Current Assets |
|||
Trade and other receivables |
1,964,792 |
506,963 |
|
Corporation tax R&D refund |
2,850,000 |
3,148,006 |
|
Cash and cash equivalents |
56,479 |
1,448,524 |
|
Inventories |
7,629,292 |
7,437,508 |
|
12,500,563 |
12,541,001 |
||
Total assets |
45,400,366 |
37,670,330 |
|
Current liabilities |
|||
Trade and other payables |
(7,491,290) |
(3,134,314) |
|
Borrowings |
(9,247,218) |
(543,250) |
|
(16,738,508) |
(3,677,564) |
||
Non-current liabilities |
|||
Borrowings |
– |
– |
|
Deferred tax |
– |
– |
|
– |
– |
||
Total liabilities |
(16,738,508) |
(3,677,564) |
|
Net assets |
28,661,858 |
33,992,766 |
|
Equity |
|||
Share capital |
20,233,799 |
18,116,946 |
|
Share premium reserve |
43,259,389 |
43,117,741 |
|
Share option reserve |
5,743,609 |
4,258,148 |
|
Reverse acquisition reserve |
11,038,204 |
11,038,204 |
|
Loan note conversion reserve |
5,650,631 |
– |
|
Exchange movements reserve |
460,410 |
1,525,539 |
|
Accumulated losses |
(57,724,185) |
(44,063,813) |
|
Equity attributable to shareholders of the Parent Company |
28,661,858 |
33,992,766 |
|
Non-controlling interests |
– |
– |
|
Total equity funds |
28,661,858 |
33,992,766 |
Compact, modular and easy to install: While other systems come in one size, LIGHT can be customised due to its modularity. This offers clinics an opportunity to expand their offering to other rooms and / or to increase system strength step by step as clinical needs develop. The fact that new modules can be added to increase output energy at any point reduces the commitment by healthcare providers to high upfront costs for systems that may not be fully utilised;
Consolidated statement of changes in equity |
||||||||||
For the year ended 31 December 2017- Financials in £ |
||||||||||
Share capital |
Share premium reserve |
Share option reserve |
Reverse acquisition reserve |
Loan note conversion reserve |
Exchange movement reserve |
Accumulated losses |
Equity share holders interest |
Non-Controlling interest |
Total |
|
Balance at 01 January 2016 |
14,183,284 |
32,815,156 |
3,045,779 |
11,038,204 |
– |
(83,166) |
(33,719,363) |
27,279,894 |
– |
27,279,894 |
Loss for the year |
– |
– |
– |
– |
– |
– |
(10,346,660) |
(10,346,660) |
2,210 |
(10,344,450) |
other comprehensive income exchange movement |
– |
– |
– |
– |
– |
1,608,705 |
– |
1,608,705 |
– |
1,608,705 |
Total comprehensive Income |
– |
– |
– |
– |
– |
1,608,705 |
(10,346,660) |
(8,737,955) |
2,210 |
(8,735,745) |
Arising on issues |
||||||||||
of ordinary shares |
3,762,040 |
9,776,707 |
– |
– |
– |
– |
– |
13,538,747 |
– |
13,538,747 |
Share based payment |
||||||||||
– cost of raising equity |
50,000 |
150,000 |
72,861 |
– |
– |
– |
– |
272,861 |
– |
272,861 |
– employee services |
121,622 |
375,878 |
955,443 |
– |
– |
– |
– |
1,452,943 |
– |
1,452,943 |
– acquisition of ADAM sa |
– |
– |
161,742 |
– |
– |
– |
– |
161,742 |
– |
161,742 |
– other services |
– |
– |
22,324 |
– |
– |
– |
– |
22,324 |
– |
22,324 |
Group provision for minority interest |
– |
– |
– |
– |
– |
– |
2,210 |
2,210 |
(2,210) |
– |
Balance at 31 December 2016 |
18,116,946 |
43,117,741 |
4,258,148 |
11,038,204 |
– |
1,525,539 |
(44,063,813) |
33,992,766 |
– |
33,992,766 |
Balance at 01 January 2017 |
18,116,946 |
43,117,741 |
4,258,148 |
11,038,204 |
– |
1,525,539 |
(44,063,813) |
33,992,766 |
– |
33,992,766 |
Loss for the year |
– |
– |
– |
– |
– |
– |
(13,660,372) |
(13,660,372) |
– |
(13,660,372) |
other comprehensive income exchange movement |
– |
– |
– |
– |
– |
(1,065,130) |
– |
(1,065,130) |
– |
(1,065,130) |
Total comprehensive Income |
– |
– |
– |
– |
– |
(1,065,130) |
(13,660,372) |
(14,725,501) |
– |
(14,725,501) |
Arising on issues |
||||||||||
of ordinary shares |
208,334 |
41,666 |
– |
– |
– |
– |
– |
250,000 |
– |
250,000 |
Share based payments |
||||||||||
– employee services |
55,587 |
2,913 |
690,810 |
– |
– |
– |
– |
749,310 |
– |
749,310 |
– acquisition of ADAM S.A. |
– |
– |
161,742 |
– |
– |
– |
– |
161,742 |
– |
161,742 |
– cost of raising equity |
– |
– |
16,877 |
– |
– |
– |
– |
16,877 |
– |
16,877 |
– cost of raising finance |
– |
– |
544,163 |
– |
– |
– |
– |
544,163 |
– |
544,163 |
Conversion of loan notes |
1,852,932 |
97,068 |
– |
– |
– |
– |
– |
1,950,000 |
– |
1,950,000 |
– other services |
– |
– |
71,869 |
– |
– |
– |
– |
71,869 |
– |
71,869 |
Convertible loans raised |
– |
– |
– |
– |
5,650,631 |
– |
– |
5,650,631 |
– |
5,650,631 |
Balance at 31 December 2017 |
20,233,799 |
43,259,389 |
5,743,609 |
11,038,204 |
5,650,631 |
460,410 |
(57,724,185) |
28,661,858 |
– |
28,661,858 |
Consolidated statement of cash flows |
||||||||||||||||||||||
For the year ended 31 December 2017 – Financials in £ |
||||||||||||||||||||||
2017 |
2016 |
|||||||||||||||||||||
Continued |
Discontinued |
Group |
Continued |
Discontinued |
Group |
|||||||||||||||||
Cash flow from operating activities |
||||||||||||||||||||||
Loss after taxation |
(13,660,371) |
– |
(13,660,371) |
(10,366,550) |
22,100 |
(10,344,450) |
||||||||||||||||
Adjustments: |
||||||||||||||||||||||
Taxation |
(2,827,115) |
– |
(2,827,115) |
(2,818,050) |
– |
(2,818,050) |
||||||||||||||||
Finance costs |
1,994,891 |
– |
1,994,891 |
106,338 |
– |
106,338 |
||||||||||||||||
Finance income |
– |
– |
– |
(9,045) |
– |
(9,045) |
||||||||||||||||
Depreciation |
365,470 |
– |
365,470 |
345,371 |
– |
345,371 |
||||||||||||||||
Share based payments |
1,543,961 |
– |
1,543,961 |
1,909,871 |
– |
1,909,871 |
||||||||||||||||
Cash flows from operations before changes in working capital |
(12,583,163) |
– |
(12,583,163) |
(10,832,065) |
22,100 |
(10,809,965) |
||||||||||||||||
Changes in inventories |
(191,784) |
– |
(191,784) |
(3,019,219) |
– |
(3,019,219) |
||||||||||||||||
Property deposits made |
(838,887) |
– |
(838,887) |
– |
– |
– |
||||||||||||||||
Change in trade and other receivables |
(2,139,752) |
– |
(2,139,752) |
14,770 |
– |
14,770 |
||||||||||||||||
Change in trade and other payables |
4,341,687 |
(8,530) |
4,333,157 |
662,213 |
14,912 |
677,125 |
||||||||||||||||
Cash (used) / generated from operations |
(11,411,899) |
(8,530) |
(11,420,429) |
(13,174,302) |
37,012 |
(13,137,290) |
||||||||||||||||
Interest paid |
(568,667) |
– |
(568,667) |
(246,550) |
– |
(246,550) |
||||||||||||||||
Convertible loan costs paid |
(721,327) |
– |
(721,327) |
– |
– |
– |
||||||||||||||||
Corporation Tax Receipt |
3,125,121 |
– |
3,125,121 |
2,454,268 |
– |
2,454,268 |
||||||||||||||||
Cash flows from operating activities |
(9,576,772) |
(8,530) |
(9,585,302) |
(10,966,583) |
37,012 |
(10,929,571) |
||||||||||||||||
Capital expenditure on intangible assets |
(8,437,115) |
– |
(8,437,115) |
(8,908,411) |
– |
(8,908,411) |
||||||||||||||||
Purchase of buildings plant and equipment |
(123,597) |
– |
(123,597) |
(770,339) |
– |
(770,339) |
||||||||||||||||
Interest received |
– |
– |
– |
16,713 |
– |
16,713 |
||||||||||||||||
Cash flows from investment activities |
(8,560,712) |
– |
(8,560,712) |
(9,662,037) |
– |
(9,662,037) |
||||||||||||||||
Cash flows from financing activities: |
||||||||||||||||||||||
Equity share capital raised |
250,000 |
– |
250,000 |
13,538,747 |
– |
13,538,747 |
||||||||||||||||
Convertible loans |
7,800,000 |
– |
7,800,000 |
– |
– |
– |
||||||||||||||||
Other short term loans |
8,703,968 |
– |
8,703,968 |
(456,750) |
– |
(456,750) |
||||||||||||||||
Intra Group Cash Transfers |
(9,163) |
9,163 |
– |
19,991 |
(19,991) |
– |
||||||||||||||||
Cash flows from financing activities |
16,744,805 |
9,163 |
16,753,968 |
13,101,988 |
(19,991) |
13,081,997 |
||||||||||||||||
Increase/(decrease) in cash and cash equivalents |
(1,392,679) |
633 |
(1,392,045) |
(7,526,633) |
17,021 |
(7,509,612) |
||||||||||||||||
Cash and cash equivalents at 01 January 2017 |
1,431,502 |
17,021 |
1,448,524 |
8,958,135 |
– |
8,958,135 |
||||||||||||||||
Cash and cash equivalents at 31 December 2017 |
38,824 |
17,654 |
56,479 |
1,431,502 |
17,021 |
1,448,524 |
||||||||||||||||
The annual report for the year ended 31 December 2017 will be available from the Company’s website at www.advancedoncotherapy.com and will shortly be posted to shareholders together with a notice of Annual General Meeting to be held at 2:30pm on Wednesday, 25 July 2017 at the Royal Society of Medicine, 1 Wimpole Street, London W1G 0AE.
Radiation for Mesothelioma: Could Proton Therapy Be the Answer? – Advanced Oncotherapy #AVO
Researchers at the Maryland Proton Therapy Treatment Center say that a highly-targeted version of proton beam radiation could be the future of radiotherapy for malignant plural mesothelioma.
Advanced Oncotherapy #AVO, is developing a unique, fully integrated, proton therapy system. The LIGHT System is expected to be the first commercially available linear proton accelerator for medical treatment of cancer patients.
Link to the full Directors Talk article at the link below.
Advanced Oncotherapy #AVO – Update on Financing
Advanced Oncotherapy (AIM: AVO), the developer of next-generation proton therapy systems for cancer treatment, announces that the Company has received £10 million from Yantai Cipu, through its affiliated entity Liquid Harmony, in relation to the balance of payments due under the Distribution Agreement announced on 7 December 2017. This completes the £30 million investment from Yantai Cipu.
In addition, the Company announces that further to previous announcements regarding the Bracknor funding facility, all outstanding Convertible Loan Notes (“CLN”) owned by Bracknor are being converted into new ordinary shares of 25p issued (“Ordinary Shares”) at a price of 46p. As part of this transaction, 5,127,560 Ordinary Shares are being issued as a result of the conversion and the satisfaction of the payment of conversion fee and commitment fees (the “Conversion”). The new Ordinary Shares will be immediately transferred to a third party investor called M3T PTE Ltd. M3T PTE Ltd is a Special Purpose Vehicle created by a Singaporean Family Office to hold these Ordinary Shares. As a result, Bracknor no longer holds CLN relating to the Company.
Application will be made for admission to trading on AIM (“Admission”) of the 5,127,560 new Ordinary Shares deriving from the Conversion and it is expected that Admission will occur on or around 5 June 2018.
Total voting rights
Following Admission, the Company’s enlarged issued share capital will comprise 155,629,233 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 155,629,233. 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 Guidance and Transparency Rules.
Commenting, Nicolas Serandour, CEO of Advanced Oncotherapy, said: “Today’s announcement is a further important step forward in strengthening our balance sheet position. With the completion of our financing arrangement with Yantai Cipu and the placing of the remaining shares due to Bracknor in the hand of a long-term shareholder, we are progressing steadily with our plans of setting our business onto a sustainable path for profitable growth. I want to thank Bracknor for their support since last summer and welcome M3T PTE Ltd as a new shareholder of the Company.“
For further information, please contact:
Advanced Oncotherapy Plc |
|
Dr. Michael Sinclair, Executive Chairman |
Tel: +44 20 3617 8728 |
Nicolas Serandour, CEO |
|
Stockdale Securities (Nomad & Joint Broker) |
|
Antonio Bossi / Ed Thomas |
Tel: +44 20 7601 6100 |
Stifel Nicolaus Europe (Joint Broker) |
|
Jonathan Senior |
Tel: +44 20 7710 7600 |
Walbrook PR (Financial PR & IR) |
Tel: +44 20 7933 8780 or avo@walbrookpr.com |
Paul McManus / Anna Dunphy |
Mob: +44 7980 541 893 / Mob: +44 7876 741 001 |
About Advanced Oncotherapy Plc www.avoplc.com
Advanced Oncotherapy is a provider of particle therapy with protons that harnesses the best in modern technology. Advanced Oncotherapy’s team “ADAM”, based in Geneva, focuses on the development of a proprietary proton accelerator called Linac Image Guided Hadron Technology (LIGHT). LIGHT’s compact configuration delivers proton beams in a way that facilitates greater precision and electronic control.
Advanced Oncotherapy will offer healthcare providers affordable systems that will enable them to treat cancer with an innovative technology as well as lower treatment-related side effects.
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.
Advanced Oncotherapy #AVO – Successful testing supports the superior clinical outcomes of LIGHT
Advanced Oncotherapy (AIM: AVO), the developer of next-generation proton therapy systems for cancer treatment, provides the following technological update.
The LIGHT system has been designed to electronically control the fast delivery of protons to the tumour site. This unique ability provides the opportunity to alter the exact amount of radiation that is given to every part of the tumour in a few micro-seconds. This feature is invaluable for accurate tumour targeting and side-effect minimisation, particularly in the case of moving targets. As part of its testing and regulatory plan, the Company has developed a Time-of-Flight measurement system which measures the speed of the beam; this allows the system to measure the energy of each proton pulse, which is a very important clinical parameter.
TOF testing of beam energy control and adjustment has proved to be successful with real-time results demonstrating remarkably good agreement with computer simulations. The accurate evaluation of the beam energy requires measurement of time differences to picosecond precision (a picosecond being the time it takes light to travel one third of a millimetre).
In the meantime, the Company continues to make significant progress with power testing of the Side Coupled Drift Tube Linac integrated with the Radiofrequency Quadrupole and proton source. With much of the technological development now de-risked, the Company is on target to have a system capable of treating superficial tumours by the end of Q3 2018.
Jonathan Farr, Director of Medical Physics at Advanced Oncotherapy, said: “Proton therapy is a high precision patient treatment. In proton therapy, the beam energy determines the depth of dose deposition in the patient. Because of the protons stopping in the patient’s body during treatment, we would like to know the proton beam energy at the instant it is delivered. The new Advanced Oncotherapy Time-of-Flight on-line energy measurement feature gives us the ability to do just that. I consider it to be a real advancement from previous and existing systems on the market and a key building block in offering more versatile treatments with the potential for significantly improved clinical outcomes.”
For further information, please contact:
Advanced Oncotherapy Plc |
|
Dr. Michael Sinclair, Executive Chairman |
Tel: +44 20 3617 8728 |
Nicolas Serandour, CEO |
|
Stockdale Securities (Nomad & Joint Broker) |
|
Antonio Bossi / Ed Thomas |
Tel: +44 20 7601 6100 |
Stifel Nicolaus Europe (Joint Broker) |
|
Jonathan Senior / Ben Maddison |
Tel: +44 20 7710 7600 |
Walbrook PR (Financial PR & IR) |
Tel: +44 20 7933 8780 or avo@walbrookpr.com |
Paul McManus / Anna Dunphy |
Mob: +44 7980 541 893 / Mob: +44 7876 741 001 |
About Advanced Oncotherapy Plc www.avoplc.com
Advanced Oncotherapy is a provider of particle therapy with protons that harnesses the best in modern technology. Advanced Oncotherapy’s team “ADAM”, based in Geneva, focuses on the development of a proprietary proton accelerator called Linac Image Guided Hadron Technology (LIGHT). LIGHT’s compact configuration delivers proton beams in a way that facilitates greater precision and electronic control which is not achievable with older technologies.
Advanced Oncotherapy will offer healthcare providers affordable systems that will enable them to treat cancer with an innovative technology as well as lower treatment related side effects.
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.