Advanced Oncotherapy - Case Update

Ian Corfield and David Hudson of FRP Advisory, the joint administrators of Advanced Oncotherapy PLC, have filed their proposals outlining what led to their appointment, as well as the likely outcome facing the company.

Advanced Oncotherapy was incorporated in 2005 for the purpose of developing and researching medical technologies for the treatment of cancer. Its core focus was on a proton particle therapy called “LIGHT”, an advanced form of cancer therapy using radiation as a way to kill cancer cells.

Advanced Oncotherapy had its ordinary shares listed on the AIM market under the ticker AVO.L, although its ambition had always been to seek funding through US investors via a US listing. Shortly after the company announced that LIGHT was working at full energy, for reasons unrelated to the company, the company’s largest shareholder sold a significant proportion of its shares as part of a redemption effort across its entire portfolio. This triggered concerns amongst other investors and the share price of the company started declining, causing funders not to make their committed investments.

The company struggled to raise additional finance and FRP were engaged to assist. The company signed a term sheet with a special purpose vehicle through which a group of wealthy individuals proposed to provide funding to the company. Unfortunately, this funding failed to materialise.

Ian Corfield and David Hudson of FRP Advisory were appointed joint administrators of the company on 30 May and immediately explored options to rescue the company as a going concern. Hilco were retained to assist with a sale process and the teaser was distributed to 3,000 parties. Unfortunately, no offers were received, and the decision was made to market only the assets for sale. A marketing process is currently underway.

The joint administrators’ proposals can be found HERE.