Advanced Oncotherapy strikes China deal and raises £37m
Advanced Oncotherapy shares surged after the cancer therapy specialist announced a distribution agreement for Greater China and South Korea and more than £37m in new funding.
The company said Yantai CIPU Medical Technology, a Chinese investor in the health industry, agreed to pay £16.5m to market and sell its LIGHT proton accelerator system.
Yantai will also buy 45m shares in Advanced Oncotherapy at 30p each, raising £13.5m. Other investors, including board members and debt holders will acquire shares on the same basis for a further £7.4m. The total funds raised will be £37.4m.
The shares had jumped 66% to 54.75p by 09:26 GMT on Thursday.
Advanced Oncotherapy develops proton treatments for cancer, which target a cancerous tumour more effectively than traditional radiation treatments with less damage to other parts of the body. LIGHT is the company’s latest proton accelerator, which it says is cheaper, more precise and smaller than previous versions.
Nicolas Serandour, Advanced Oncotherapy’s chief executive, said: "I am delighted that we have been able to conclude deals to provide shareholders not only with the security of longer-term financing, but which also introduce a new experienced strategic investor with strong distribution capacity and already established commercial interest in Asia, particularly in one of our key target markets, China.
Yantai, owned by the wealthy Han family, has identified eleven potential sites for installing LIGHT. The companies are aiming for three installations over the next four years and financing of 10 more. Yantai’s Zhang RenHua and Chunlin Han will join Advanced Oncotherapy’s board.