29th Jun 2020 14:40
(Alliance News) - Advanced Oncotherapy PLC said its pretax loss was flat in 2019 as higher finance costs offset a lower operating loss.
Shares in Advanced Oncotherapy were up 6.2% at 26.45 pence in London in afternoon trading.
The company, which is developing proton therapy systems for cancer treatment, posted a GBP21.9 million pretax loss for 2019, the same as the year before.
Operating loss narrowed to GBP20.7 million from GBP21.8 million, due to GBP1.9 million cost of sales incurred in 2018 that did not repeat. However, a jump in finance costs to GBP1.2 million from GBP80,187 resulted in a maintained annual loss.
In light of the Covid-19 pandemic, the company has focused primarily on finalising documentation and software development for its LIGHT proton therapy system.
Chief Executive Nicolas Serandour said: "During 2019 we have continued the technical development of our LIGHT system as well as bolstering our financial position. We have signed strategic partnerships with UHB, the Mediterranean Hospital of Limassol and The London Clinic and established a research project with Cleveland Clinic. Following the financing agreements announced separately today, the company is now in a good position to assemble its first commercial system and treat patients in 2021.
"We have made tremendous progress with the LIGHT system over the past 12 months as we remain focused on our vision of democratising access to proton therapy for patients across the world by lowering the cost of providing this treatment modality and so improving cancer patient outcomes. Following the impact of Covid-19, we are now in the progress of restarting work with social distancing implemented at our Daresbury facility, and will update the market in due course on progress made."
Separately on Monday, Advanced Oncotherapy said it had entered two financing agreements giving access to up to around GBP42 million of further funding for LIGHT system development and to advance the manufacture of as many as 30 LIGHT systems.
A EUR20.0 million unsecured debt facility agreement has been signed with existing supplier VDL ETG Precision BV, a subsidiary of VDL Groep BV, while Advanced Oncotherapy also has entered into an interest-bearing secured convertible facility with Nerano Pharma Ltd - a financing vehicles owned by Seamus Mulligan - for up to USD30 million.
CEO Serandour said: "We are pleased to announce these debt facilities from VDL Groep and Nerano Pharma, which will allow the Company to further the assembly and certification of our LIGHT system and to advance our pipeline of construction opportunities. We have a long-standing relationship with VDL ETG Precision as a current supplier to our business and we look forward to strengthening this partnership as they help build our business for future orders. In addition, we are delighted with the continued financial support provided by Seamus Mulligan, a significant shareholder in the company."
By Anna Farley; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
AVO.L