Advanced Oncotherapy, a U.K.-based developer of therapy systems for cancer treatment, has revealed its intention to raise up to £110 million ($144 million) through a prospective recapitalization and funding plan. The company also confirmed that it is currently engaged in formal sales process discussions.
The prospective plan consists of three key elements. Firstly, a debt to equity conversion is proposed, which aims to raise up to £37.4 million. Secondly, Advanced Oncotherapy plans to secure a new £10 million interest-bearing loan. Lastly, an equity fundraising initiative is being pursued, with a target of £73.5 million.
It is important to note that the plan is still subject to various conditions, and the equity fundraising component in particular is in its early stages, making it uncertain at this time.
Advanced Oncotherapy’s shares have been suspended since late June following the need for the publication of its 2022 accounts and clarification of its financial position. The company has emphasized its urgent requirement for additional financing in order to continue operating as a going concern.
In response to this financial predicament, Advanced Oncotherapy has initiated discussions with various investors to secure bridge financing, which would help alleviate its immediate financing needs.
While the funding plan remains the company’s primary focus, it is worth mentioning that Advanced Oncotherapy also continues to explore formal sales discussions with strategic players. However, there is no guarantee that an offer will be made.