Advanced Oncotherapy (AIM: AVO), the developer of next-generation proton therapy systems for cancer treatment, announces that a consortium formed by AB Segulah and other investors (together “Segulah”) has made available a £3.9m loan to the Company. The loan will have a two year maturity and a 12% per annum rolled up interest rate.
The Segulah group includes AB Segulah, a significant shareholder of the Company, and a group of Swedish investors, including AFMS Radgivning Och Invest AB, Peter Gyllenhammar AB, Mijesi AB and Emendum AB.
Segulah will be issued 15.6 million warrants with a strike price of 25p exercisable at any time over the next five years. Part or all of the loan can be redeemed at any time by the Company at 105% of par value. If an equity financing is carried out by the Company at or above 25p before the end of 2017 the loan can be converted into equity at 25p per share.
Agreement with Bracknor
Bracknor has agreed to waive the requirement for the Company to drawdown the minimum of 10 tranches. The Segulah loan, which is equivalent to three tranches, will entitle Bracknor to receive commitment fees on this amount only at a reduced rate of 2.5%. No further fees are owed to Bracknor.
The Company does not intend to use the Bracknor facility in the future. As part of these arrangements the Company will issue 7 million warrants to Bracknor. These warrants are exercisable at 25p and may be exercised at any time over the next five years.
Commenting, Nicolas Serandour, CEO of Advanced Oncotherapy, said: “The Bracknor financing has been valuable to the Company. I would like to thank them for their flexibility in renegotiating its terms. I am particularly pleased to welcome the support shown by our highly valued Swedish investors and in particular the role that Segulah has played in arranging this new facility. Segulah was our first institutional investor and has participated in every financing since that date. The Company has benefitted not only from their financial support but also from advice grounded in their extensive international Med-Tech expertise.”
Share Talk last update: 26 June 2017 Advanced Oncotherapy (AIM: AVO) Final Results
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