Next-generation proton therapy systems developer Advanced Oncotherapy announced on Friday that, in relation to its announcement on 7 December and following the passing of the resolution by shareholders on 23 January, it has been informed by Yantai Cipu that the Chinese authorities have authorised the transfer from China of £13.5m.
The AIM-traded firm said the amount was payable by Yantai Cipu for the subscription for 45 million new ordinary shares, to be issued by the company to Yantai Cipu at 30p per share.

As a result of the subscription, and as detailed in a circular issued on 22 December, the placing of 10,868,782 new ordinary shares with new and existing investors at the subscription price, as well as the conversion of the loan made by Swedish investors by way of issue of 13,697,697 new ordinary shares, was also completed.

Application had been made for admission to trading on AIM of the 69,566,479 new ordinary shares deriving from the cubscription, the placing and the conversion, the board confirmed, with admission expected on or around 22 February.

Following admission, the total number of ordinary shares in issue would be 150,501,673, and Yantai Cipu would hold 29.90% of the enlarged issued share capital of the company.

"Yantai Cipu has also informed the company that they are in advanced negotiation with a major medical equipment and pharmaceutical distribution company in China for a collaboration to accelerate and strengthen their market access in the People's Republic of China, Hong Kong, Macau, Taiwan and South Korea," the board announced in its statement.

"The company and Yantai Cipu have agreed that it is in the best interest of the company and its shareholders to extend the long stop date for the distribution agreement until 31 March to enable the satisfactory completion of the negotiations with the new participant."

Advanced Oncotherapy said the commitment of Yantai Cipu around the distribution agreement remained unchanged, and the receipt of the £16.5m payment from Yantai Cipu relating to the commercial agreement with was not conditional on the completion of negotiations with the distribution company.

"The receipt of funds in relation to the commercial agreement is subject to approval from the Government of the People's Republic of China for the transfer of monies to the United Kingdom."

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