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Advanced Oncotherapy receives first payment from partner Yantai Cipu

The AIM-listed cancer treatment developer said the £6.5mln payment from Yantai had been received through its affiliated entity Liquid Harmony
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As part of an exclusive distribution agreement, Yantai agreed to pay the group £16.5mln

Advanced Oncotherapy PLC (LON:AVO) has received the first payment relating to its exclusive distribution agreement with partner company Yantai Cipu.

The AIM-listed cancer treatment developer said the £6.5mln payment from Yantai had been received through its affiliated entity Liquid Harmony, with the remaining balance of £10mln to be received in the coming weeks.

READ: Advanced Oncotherapy signs lease for new UK testing and assembly site

The group entered into an exclusive distribution agreement with Yantai Cipu in December 2017, in which Yantai agreed to pay the group £16.5mln.

In an update in April, Advanced Oncotherapy said Yantai had extended distribution negotiations with a major Chinese medical and pharmaceutical company to strengthen its market access in several East Asian countries including China and South Korea.

The firm added that the proceeds of the payment would be used toward repayment of a £6.7mln loan made to the company by Blackfinch Investment Ltd.

The company also said Blackfinch had agreed to set a 70p exercise price of the batch of 1,000,000 warrants issued to Blackfinch on 24 March 2017 in relation to the loan.

After the loan is repaid, Blackfinch will release the security held on the company's lease for 141-143, Harley Street and on certain other equipment.

Nicolas Serandour, chief executive of Advanced Oncotherapy, said: "We appreciate the flexibility demonstrated by Blackfinch who extended the maturity of the Loan on the same terms. We have been impressed by their seriousness in understanding our technology."

In mid-afternoon trading Friday, Advanced Oncotherapy shares were up 14.2% at 60p.

--Adds share price--

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