Technology advances & stronger balance sheet

AVO is focused on delivering a more affordable, novel, proton-based radiotherapy system, based on technology originally developed at the world renowned CERN. The company is entering an exciting stage with construction of its Harley Street site well underway and on schedule, with the site expected to be ready for installation by end 1H’19. While the interim results provide a commercial and financial update, AVO continues its progress in accelerating the proton beam and is on-track in building a machine capable of treating superficial tumours by 3Q’18. The financing has been on a rocky road but confidence is building up as the proton accelerates.

• Strategy: To develop a proton therapy system at an affordable price for the payor, financially attractive to the operator, whilst generating superior patient outcomes. AVO benefits from the technology know-how developed by ADAM, a CERN spin-off, and leverage world-class suppliers for manufacturing.
• Interims: AVO is on track to hit the milestones set during the Investor Presentation back in March 2017. Two milestones have already been reached. Also, the Harley Street site is progressing apace and the LIGHT machine is taking shape with the third element, from a total of four, being integrated.
• Integration: AVO is now progressing with integration of the different modules, with three of the four main accelerating elements already integrated. With less technically challenging units now being integrated, the LIGHT project is being increasingly de-risked. Acceleration of the proton beam continues apace.
• Financing: Cash of £0.23m on the 30th June, has been boosted by the £3.9m shareholder loan together with a £3.1m R&D tax credit received from HMRC post period. With a cashburn of ca.£1.9m per month, further capital will be needed in the near future, for which discussions are well advanced.
• Investment summary: Demand for proton therapy is increasing worldwide and the need for a small, flexible, affordable and close-to-patient machine is becoming ever more apparent. AVO has attracted strong partners and discussions with potential customers have already started. Attention is focused on the construction timetable for the flagship Harley Street site, where excavation and construction work is progressing very well.