Yesterday, Advanced Oncotherapy (AVO) informed that it has disposed of its subsidiary, Oncotherapy Resources Ltd (ORL), for a consideration of £100,000. The company has already received payment of £75,000 and would receive the remaining amount after one year of the disposal.
Beaufort Securities view on Advanced Oncotherapy : The aforementioned sale of ORL is in line with AVO’s strategy to focus on the development of its Proton Therapy technology. The company plans to dispose of the Folkestone property to complete the process of reorganization. Earlier this week, AVO informed of the successfully completed the high power testing of two Coupled Cavity Linac (CCL) modules at its facility in Geneva. The result validates the use of modules under necessary environment to provide high energy protons for effective treatment of patients. Last month, the company received second LIGHT purchase order from China, along with the prospect of construction of further four Proton Centres in the country (with an overall cost of around £800m) that will also use AVO technology. The Chinese market provides the company a huge opportunity owing to the rise in newly diagnosed cancer cases and deaths due to cancer in China. Furthermore, AVO has signed a joint venture agreement with CircleHealth to operate the Company’s proton beam cancer therapy centre in Harley Street. In view of the continuous developments surrounding AVO, we believe the company has bright prospects going ahead. Therefore, we retain a Speculative Buy rating on the stock.
Beaufort Securities acts as corporate broker to Advanced Oncotherapy plc
