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Advanced Oncotherapy plc (AIM: AVO), the developer of next generation proton therapy systems for cancer treatment, announces that on Tuesday 25 April it drew down a further £2 million as part of the 12-month convertible and redeemable loan agreement announced on 27 March 2017 with Blackfinch Investment Ltd, through its subsidiary Henslow Trading Limited. This brings the total financing from Blackfinch to £5 million. This additional £2 million facility is issued on the same terms as the initial £3 million loan announced on 27 March 2017.

Terms of the Loan Agreement

• 1 year loan
• £5m loan in total now fully drawn down
• Interest rate of 11%
• Repayment in cash at maturity, or possibility at discretion of the lender at any time within the next 12 months to convert all or part of the loan into Advanced Oncotherapy shares at a conversion price of 100p per share

Loan security

The £5 million loan is secured on the Company’s lease for 141-143, Harley Street and on certain other equipment of the Company. Should the Company not meet its obligations under the Loan Agreement and after a four month period during which the lease is offered for sale, four shareholders and directors (the “Guarantors”) of the Company, being Dr Nick Plowman, Fairford Capital (a company 100 per cent. owned by Michael Bradfield) and Professor Chris Nutting, in addition to Michael Sinclair who, as announced on 27 March 2017, had already provided an offer to buy back the lease, have agreed with Blackfinch to buy back the lease at a value equivalent to the outstanding amount of the £5m loan plus accrued interests and expenses. The Guarantors have also undertaken to the Company that, should they be required to buy back the lease from Blackfinch, they will offer the then shareholders of the Company the opportunity to participate in the buy back on the same terms as their participation pro rata for their shareholding in the Company.

Related party transactions

The offers by Nick Plowman, Fairford Capital and Chris Nutting to buy back the lease from Blackfinch which is part of the loan agreement with Blackfinch constitute transactions with related parties under the AIM Rules for Companies.  In accordance, therefore, with the AIM Rules, the directors of the Company, with the exclusion of Nick Plowman, Michael Bradfield  and Chris Nutting and Michael Sinclair, who had also made an offer to Blackfinch to buy back the lease as set out in the announcement of 27 March 2017, having consulted with the Company’s nominated adviser, Stockdale Securities Limited, consider that the terms of Nick Plowman, Fairford Capital and Chris Nutting entering into the agreement with Blackfinch are fair and reasonable insofar as the Company’s shareholders are concerned.

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About Advanced Oncotherapy plc www.avoplc.com

Advanced Oncotherapy is a provider of particle therapy with protons that harnesses the best in modern technology. Advanced Oncotherapy’s team “ADAM”, based in Geneva, focuses on the development of a proprietary proton accelerator called Linac for Image Guided Hadron Therapy (LIGHT). LIGHT accelerates protons to the energy levels achieved in legacy machines but in a unit that is a quarter of the size and between a quarter and a fifth of the cost. This compact configuration delivers proton beams in a way that facilitates greater precision and electronic control which is not achievable with older technologies.

Advanced Oncotherapy will offer healthcare providers affordable systems that will enable them to treat cancer with an innovative technology as well as better health outcomes and lower treatment related side effects.

Advanced Oncotherapy continually monitors the market for any emerging improvements in delivering proton therapy and actively seeks working relationships with providers of these innovative technologies. Through these relationships, the Company will remain the prime provider of an innovative and cost-effective system for particle therapy with protons.

About Blackfinch www.blackfinch.com

Blackfinch is an established UK provider of tax-efficient investment solutions. Their philosophy is based on transparency and simplicity and their services provide real solutions to real financial planning challenges faced by individuals today