Advanced Oncotherapy, a U.K.-based developer of therapy systems for cancer treatment, announced on Monday that it has signed a nonbinding term sheet with a third-party investor to secure approximately $80 million in funding. This funding will help meet the company’s cash flow requirements until its Light system receives European certification.
The terms of the transaction are still subject to agreement on definitive documentations, satisfaction of conditions, and obtaining all necessary approvals and consents. The funding is expected to consist of a combination of equity and debt financing.
The Light system, designed for the treatment of tumors, is scheduled to be used on the first patients in 2024, following certification.
Advanced Oncotherapy’s shares have been suspended since late June. The publication of its 2022 accounts and clarification of its financial position have been pending. In order to continue as a going concern, the company urgently requires additional financing and has been actively pursuing bridge financing options.
While discussions on bridge financing are still ongoing, Advanced Oncotherapy has secured £200,000 ($243,300) through a short-term unsecured loan from a new investor, as well as £150,000 from an existing investor.
It is important to note that there is no guarantee the financing transaction will proceed. Additionally, the company is engaged in discussions under its formal sale process with strategic players in the radiotherapy sector.