Avacta Group has announced its decision to settle the upcoming July quarterly amortisation payment for its unsecured convertible bonds in cash. The payment, totalling £3.13 million, comprises £2.55 million in principal and £580,000 in interest.
The company, known for developing innovative cancer treatments and diagnostics, said it carefully deliberates each payment as it arises. The board considers various factors, including the firm’s cash runway, potential shareholder dilution, and overall business outlook before making a decision.
Investors will be pleased that this particular payment has been settled in cash and avoids any dilution for investors.
Following this cash settlement, the outstanding principal on Avacta’s convertible bonds will decrease by £2.55 million to £33.15 million.
Avacta raised around £30m by way of a placing in Q1 2024 to develop the AVA6000 pre|CISION molecule targeting improvements in patient outcomes during chemotherapy.