Advanced Oncotherapy PLC, a developer of next-generation proton therapy systems for cancer treatment, has provided an update on its financing discussions. The company is working on a recapitalization plan with a third-party investor, with whom they have signed a non-binding term sheet. As of the announcement date, no binding agreements have been entered into, and the company is hopeful of receiving an initial tranche of funding during January 2024, although there is no guarantee of this. The company is also in advanced discussions for a short-term loan facility to provide additional bridge financing.

The company's current liabilities include an estimated £28 million owed to trade and other unsecured creditors and £41 million of financial debt. Additionally, the company is assessing ways to improve the balance sheet of its Swiss operating subsidiary, ADAM SA, which has been granted certain protections against its creditors through to 20 March 2024.

The board of the company is hopeful of a satisfactory outcome but acknowledges the uncertainty surrounding the Financing Transaction and the short-term loan facility. Without access to the additional capital proposed to be provided by the Investor, the company is unlikely to continue trading and may become insolvent.

The company's shares remain suspended from trading on AIM pending the completion of the Financing Transaction, publication of the annual report and accounts for the year ended 31 December 2022, and publication of the unaudited interim results for the six months ended 30 June 2023.

Advanced Oncotherapy Plc, headquartered in the UK, is focused on providing particle therapy with protons through its proprietary proton accelerator called Linac Image Guided Hadron Technology (LIGHT). The company aims to offer healthcare providers affordable systems that enable them to treat cancer with innovative technology and lower treatment-related side effects. Advanced Oncotherapy Plc continues to monitor the market for emerging improvements in delivering proton therapy and seeks working relationships with providers of these innovative technologies to remain a prime provider of cost-effective systems for particle therapy with protons.