Advanced Oncotherapy (AVO.L): £15m fundraise and Covid-19 update
Market capitalisation: £63.6m; Share price: 26p
· Proton therapy developer, Advanced Oncotherapy, announced a £15m fundraise.
· The funds are intended to progress the regulatory approval of LIGHT, the Group’s novel proton beam therapy system for cancer treatment.
· The subscription, conditional upon shareholder approval, was completed at 25p/share.
· In response to the COVID-19 pandemic, AVO noted the Daresbury Laboratory and Harley Street sites have been temporarily closed
· The Company expects the first LIGHT System to become operational with first patient treatment in 2021 (previously expected end of 2020).
The completion of a double-digit fundraise in current market conditions is an achievement and should ensure AVO is well capitalised for the current period of uncertainty driven by the coronavirus pandemic. The delay in first patient treatment to 2021 is unsurprising given the current lockdown conditions. LIGHT is classified as a medical device and is therefore going through the CE and FDA 510(k) pathways. Under remote working conditions the Group is still able to progress documentation work for the regulatory submission. Proton therapy has been observed to have benefits over conventional radiotherapy, such as a more focused dose of radiation to the tumour site and a reduction in damage to healthy tissue surrounding the tumour site. #AVO