12th Oct 2015 07:29
LONDON (Alliance News) - Advanced Oncotherapy PLC said Monday it has inked a joint venture deal with fellow AIM-listed company Circle Holdings PLC to operate its proton beam cancer therapy centre in Harley Street, London.
Under the deal the two companies will form a new company, which it will both fund to the amount of GBP6 million to cover pre-opening costs and working capital. The venture will be 50.1% owned by Circle, and 49.9% by Advanced Oncotherapy.
The Harley Street site will house Advanced Oncotherapy's LIGHT system, a proton accelerator used for the treatment of cancer.
Advanced Oncotherapy is also in talks with Circle about an agreement to supply its LIGHT system alongside Circle's planned new-build independent hospital in Edgbaston, Birmingham.
"Circle Health has a great record for providing innovative healthcare delivery and are the ideal candidate to operate our flagship Harley Street site. Whilst we expect our ongoing business model to focus on Advanced Oncotherapy as a manufacturer of cutting edge proton therapy systems, we felt it was crucial, given the strategic importance of our first site in Harley Street, to have a vested interest in the ongoing operational success of our facility. Working alongside Circle Health, we expect it to transform the UK's approach to cancer radiotherapy treatment," said Chief Executive Officer of Advanced Oncotherapy Sanjeev Pandya in a statement.
Shares in Circle Holdings were untraded Monday morning shortly after market open. They last closed at 38.65 pence. Shares in Advanced Oncotherapy were up 1.8% at 7.25 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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