Advanced Oncotherapy secures £3.9m loan

Shareholders in AIM-listed Advanced Oncotherapy, a developer of next-generation proton therapy systems for cancer treatment, have made a £3.9m loan available to the company.

The loan, made available by a consortium formed by major shareholder Segulah and a group Swedish investors, will have a two-year maturity and a 12% per annum rolled up interest rate.

Segulah will be issued 15.6m 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.

Advanced Oncotherapy said Bracknor has agreed to waive the requirement for the company to drawdown the minimum 10 tranches. It added that it does not intend to use Bracknor Investment Group’s convertible loan note facility in the future.

Chief executive officer Nicolas Serandour 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."

At 1145 BST, the shares were up 95% to 19p.