Advanced Oncotherapy to repay loan with distribution agreement payment of £6.5m

Cancer treatment developer Advanced Oncotherapy announced on Friday that it will repay a significant chunk of a loan after receiving £6.5m from Yantai Cipu pertaining to a distribution agreement.

The payment from Yantai Cipu, made through Yantai’s affiliated entity Liquid Harmony, relates to an agreement that was first announced in December and is expected to be followed by a balance of £10m in the next few weeks.

The proceeds of the first payment will be used towards the repayment of a loan from Blackfinch Investment Ltd, through its subsidiary Henslow Trading Limited, for a total aggregate nominal value of £6.7m including interest.

Nicolas Serandour, chief executive of Advanced Oncotherapy, said: "We appreciate the flexibility demonstrated by Blackfinch who extended the maturity of the loan on the same terms. We have been impressed by their seriousness in understanding our technology.”

Following the repayment of the loan, Blackfinch has agreed to release the security it held on the lease for 141-143, Harley Street and on certain other equipment of the Advanced Oncotherapy.

All of the company’s assets are now free of any security arrangement.

The company’s distribution agreement with Yantai Cipu was made with a view to strengthen its market access in several East Asian countries including China and South Korea, and has so far facilitated distribution negotiations with a major Chinese medical and pharmaceutical company.

As of 0849 BST, Advanced Oncotherapy’s shares were up 12.86% at 59.25p.