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Letter to Nomad Allenby & AIM Regulation: Has Advanced Oncotherapy not told us something?

By Tom Winnifrith, The Sheriff of AIM | Wednesday 12 February 2020


Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.


Nigel Somerville is too nice a guy to ask if a company has been a very naughty boy indeed. I am not.  I note his piece earlier on Advanced Oncotherapy (AVO) and it seems obvious that, while Nomad Allenby probably does not give a flying feck, the question should be asked. And so I have written to the Oxymorons at AIM Regulation asking them to investigate

Request to investigate whether AIM listed Advanced Oncotherapy has breached AIM Rules

To: AIM Regulation

Cc: Hapless Nomad Allenby

Sirs.

We have communicated before on this company which has always played fast and loose with the rules. But I write now asking you to investigate whether Advanced Oncotherapy has committed its worst sin to date. I do not accuse, I ask the question and you can easily find the answer, I cannot.

On 11 February 2020 Advanced announced that on its main project, the establishment of a Harley Street Clinic it had signed an MOU about partnering with The London Clinic. It dropped into the release that its agreement to co-develop the site on a profit share basis announced, with great fanfare, in October 2015 with Circle Health had “lapsed.”  The question is when did it know that the agreement would or was likely to lapse?

The thing is that the RNS form 2015 didn’t mention a cut-off date, so how has the deal “lapsed”? When did it lapse? When did Advanced first get an intimation that it might lapse? It seems odd to have lapsed four years and four months later.

Circle Health was taken over by Tosca Fund via a company then called DMWSL 849 Limited in 2017, with the acquirer being renamed Circle Health Holdings Limited. There is NO mention of the deal with Advanced Oncotherapy in either its FY17 or FY18 Annual Reports. Nor is there any evidence of the 50-50 joint venture with Advanced Oncotherapy.

We see boasts of hospitals and facilities in Bath, Reading, Nottingham, Birmingham, Bedfordshire and Greenwich……but not Harley Street. Indeed, the FY18 report mentions Birmingham under Future Developments ……but not Harley Street.

Yet the FY15 report of Circle Health when it was a listed plc mentions the deal with Advanced Oncotherapy in Steve Melton’s CEO report as a separate item. But that was before Advanced Oncotherapy reset the clock on Harley Street – and opening in 2017 was not going to happen.

So when did Circle pull the plug or intimate to Advanced that it might pull the plug?

Why does this matter? Because shareholders in Advanced have seen no announcement about the Circle deal lapsing until this week. But the company has repeatedly issued news shares to raise funds since October 2015, the most recent such fund raise being on 20 November 2019.

If a major partnership had lapsed or looked likely to lapse and the company raised fresh funds without telling investors that would, I think we can agree, be very naughty indeed. So the question is: when did the deal with Circle lapse or when did Advanced know that it was likely to lapse? I urge you to find out with some degree of urgency and, if needs be, take appropriate action.

I remain, as ever,

Your obedient servant

Tom Winnifrith
The Sheriff of AIM
www.ShareProphets.com



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