Advanced Oncotherapy secures up to £42m in new loan facilities

Advanced Oncotherapy CEO Nicolas Serandour

Advanced Oncotherapy has entered into two financing agreements giving it access to up to £42m of additional funding to develop and expand its next generation proton beam therapy LIGHT system.

The agreements with existing supplier VDL ETG Precision BV and shareholder Nerano Pharma Limited will be used to accelerate certification and advance the manufacturing of up to 30 LIGHT systems.

The VDL facility provides up to €20m in the form of an unsecured loan agreement which can be drawn down by Advanced Oncotherapy during a six-year commitment period.

VDL ETG Precision BV, a subsidiary of VDL Groep BV, manufactures precision parts, prototypes, sub-assemblies and modules used in Advanced Oncotherapy’s LIGHT system and the two companies have agreed to collaborate in a number of additional areas.

Amounts drawn down will be related to purchase orders associated with the sale of LIGHT systems to customers. Advanced Oncotherapy will repay each loan in full, three years after the initial drawdown date, with the option to voluntarily repay part of or all of the loan in advance.

The Nerano Facility is an interest-bearing secured convertible facility for up to $30m, which can be drawn down at any time during the three-year term.

Interest at a rate of 5% will accrue on all amounts drawn under the facility and paid on an annual basis with the option to defer payment until the maturity date of 29 June 2023.

Nerano Pharma is a financing vehicle wholly owned by Seamus Mulligan, a significant shareholder in Advanced Oncotherapy. The new facility is secured on the LIGHT components being built in Daresbury and Geneva and associated intellectual property. Under the deal, Nerano Pharma will be entitled to a share of the profit generated by the Harley Street centre for up to 15 years.

Advanced Oncotherapy CEO Nicolas 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.