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Advanced Oncotherapy lays out prospective recapitalization, funding plan
Chicago, July 24 – Advanced Oncotherapy plc announced a prospective recapitalization and funding plan to raise up to £100 million, according to a company update.
In the absence of additional financing being available in the immediate term, the company would need to take steps to preserve and maximize value for its creditors, including the possible appointment of an administrator.
Currently, the company’s shares are suspended from trading.
The company’s three-part plan includes a potential debt-to-equity conversion, a new interest-bearing secured loan and an equity fundraise.
The company currently has £33.1 million of financing borrowings outstanding:
• £8.3 million of 5% debt due June 2023 with lender Nerano Pharma Ltd.;
• £4 million of 15% debt due July 2024 also with Nerano;
• £10 million of Libor plus 200 basis points debt due September 2023 with Nerano and Credit Suisse as lenders;
• £1.5 million of debt with 1.25% per month interest with Nerano due June 2022;
• £2.7 million of debt with a French lender due February 2025;
• £100,000 of other debt; and
• £6.4 million in a secured convertible note facility due January 2024.
Nerano has agreed to convert its debt. The company is hopeful that most of the convertible noteholders will agree to convert their notes.
The company intends that the French lender would be paid in cash, if the rest of the recapitalization plan is successful.
Second, the company is in discussions with a lender for a new £10 million loan. Interest would be at 12%, with repayment in cash after 24 months.
The loan is contingent on the rest of the plan.
The company is also hoping to raise £6.17 million in an equity fundraising.
The company, based in the United Kingdom, is a provider of particle therapy with protons.
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