REG - AOTI, Inc. - Admission to AIM and First Day of Dealings

AotiAnnouncement

18/06/2024 07:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240618:nRSR7740Sa&default-theme=true

RNS Number : 7740S  AOTI, Inc.  18 June 2024

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR
INTO THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, THE REPUBLIC OF SOUTH
AFRICA OR JAPAN OR ANY OTHER JURISDICTION IN WHICH PUBLICATION, RELEASE OR
DISTRIBUTION WOULD BE UNLAWFUL.

 

THIS ANNOUNCEMENT IS NOT A PROSPECTUS NOR AN ADMISSION DOCUMENT. NEITHER THIS
ANNOUNCEMENT, NOR ANYTHING CONTAINED HEREIN, SHALL FORM THE BASIS OF, OR BE
RELIED UPON IN CONNECTION WITH, ANY OFFER OR COMMITMENT WHATSOEVER IN ANY
JURISDICTION. INVESTORS SHOULD NOT SUBSCRIBE FOR OR PURCHASE ANY SECURITIES
REFERRED TO IN THIS ANNOUNCEMENT EXCEPT ON THE BASIS OF INFORMATION CONTAINED
IN THE ADMISSION DOCUMENT (THE "ADMISSION DOCUMENT") WHICH WAS PUBLISHED BY
AOTI, INC. (THE "COMPANY") ON 14 JUNE 2024 IN CONNECTION WITH THE ADMISSION OF
THE ISSUED AND TO BE ISSUED SHARES OF COMMON STOCK  (THE "SHARES") TO TRADING
ON AIM ("ADMISSION"). A COPY OF ANY ADMISSION DOCUMENT PUBLISHED BY THE
COMPANY IS AVAILABLE FOR INSPECTION ON THE COMPANY'S WEBSITE AT WWW.
AOTINC.NET.

 

 

18 JUNE 2024

 

 

AOTI, INC. (the "Company" or "Group" or "AOTI")

 

ADMISSION TO TRADING ON AIM AND FIRST DAY OF DEALINGS

 

Realising the potential of differentiated technologies in driving sustained
healing of

"hard-to-heal" chronic wounds

 

Successfully raised £35.1m for itself and certain selling shareholders

 

 

AOTI, INC., a medical technology group with a mission to help all people with
chronic conditions get back to living their lives to the fullest, is pleased
to announce the admission of its shares of common stock of the Company
("Common Shares") to trading on the AIM market of the London Stock Exchange
Group plc. The Company has successfully raised gross proceeds of £19.5
million through a placing of 14,772,918 newly issued Common Shares at a
placing price of 132 pence per Common Share (the "Placing Price"). In
addition, gross proceeds of £15.6 million were raised for certain selling
shareholders through the placing of 11,818,336 existing Common Shares at the
Placing Price.

 

AOTI's market capitalisation at the placing price of 132 pence per common
share on admission will be approximately £140 million. Dealings in the common
shares of the Company will commence today at 08.00 BST, under the ticker
"AOTI" and the ISIN "US03690C1027". The Company's admission document was
published on 14 June 2024 and is available to view on its Investor Relations
website at www.aotinc.net (http://www.aotinc.net) . Peel Hunt LLP is acting as
Nominated Adviser and Broker to the Company.

 

AOTI, INC. HIGHLIGHTS:

 

-     AOTI is a high growth medical technology business focused on the
highest growth "hard to heal" advanced wound care market segment, in
particular diabetic foot ulcers (DFUs), venous leg ulcers (VLUs) and pressure
ulcers (PUs).

 

o  DFUs frequently result in hospitalisations in diabetics and are the
leading cause of morbidity and lower extremity amputations in the diabetic
population. In the US, DFUs have a similar five-year mortality risk (at 30.5
per cent) as all-cause cancer, and in the US alone, the annual cost of
diabetic foot care is c.$79 billion, which is comparable to the c.$80 billion
annual cost spent for all cancer treatments.

 

-     The Group generated $43.9 million in revenue for the year ended 31
December 2023 and has seen compounded annual revenue growth of 38 per cent
(2021 - 2023), all of which came from its unique multi-modality Topical Wound
Oxygen (TWO(2)(®)) Therapy. The Group has been profitable at the adjusted
EBITDA level since 2017(1).

 

o  Following a period of significant investment in the Company's market
access and commercial infrastructure over the past two financial years, AOTI
is now entering its next phase of expansion with the foundations for
sustainable growth in place.

 

-     The Company's patented non-invasive platform technology, TWO(2)(®)
Therapy, is a US Food and Drug Administration (FDA) cleared and CE Marked
multi-modality topical wound oxygen therapy system that has been proven to
deliver sustained healing outcomes of chronic wounds in the at-home setting.

 

-     AOTI is a market leader with over 80 per cent market share of the
nascent topical oxygen wound therapy segment.

 

o  To support its adoption, TWO(2)(®) Therapy has generated an exceptional
level of peer-reviewed evidence, including a high quality randomised
controlled trial (RCT) and real world evidence (RWE) studies, demonstrating
long-term outcomes that support advancing health equity, with strong
cost-saving healthcare economics supporting reimbursement.

 

o  The Company has also acquired and is now rolling out its complementary and
highly differentiated disposable NEXA™ Negative Pressure Wound Therapy
system (NEXA NPWT System).

 

-     The Company has an experienced founder-led management team and
seasoned Board focused on scaling and growing the business through expanding
reimbursement in the US and opening up other geographies.

 

o  The first phase of the Company's reimbursement strategy has successfully
been completed with reimbursement having been secured in the Veterans
Association (VA) and New York Medicaid for a number of years.

 

o  The second phase of expanding wider state Medicaid payer coverage is
ongoing, with access being secured to new Medicaid states including Arizona,
New Jersey and, more recently, Tennessee, and the launch of the NEXA NPWT
System and international sales being commenced.

 

o  The third phase of the Group's market access strategy is to achieve, over
time, full US national coverage and access to the Medicare population.

 

-     Following recently published recommendations by leading clinical
associations for the use of topical oxygen therapy as an adjunct to the
standard care, including the American Diabetes Association, the Wound Healing
Society and the International Working Group on the Diabetic Foot, the Board of
AOTI believes the time is right to join AIM in order to further accelerate
commercial roll-out and build awareness of its platform technology.

 

-     The net proceeds to the Company from the IPO of £13.5 million will
be used towards funding the continued expansion of the Group's sales team in
the US and opening up new territories in which the Group's products can be
sold whilst also repaying the Group's existing financial debt. In addition,
the Group will direct some funding towards continuing to enhance the clinical
claims attached to its products, for instance, growing the evidence of
efficacy in other indications such as VLUs.

 

Dr. Mike Griffiths, Chief Executive Officer of AOTI, INC. commented:

"We are delighted to be admitted to trading on AIM, which is in line with the
Board's strategy to further accelerate the Group's commercial roll-out,
enabling us to reach our full potential whilst fulfilling our mission of
helping all people with chronic conditions get back to living their lives to
the fullest. The Board believes that AOTI has all of the building blocks in
place to secure expanded market access and commercialisation of our TWO(2)(®)
Therapy and to continue the staged roll-out of the NEXA NPWT System, the
Company's independently differentiated wound care platforms. On behalf of the
Board, I would like to thank all our new investors who have joined the AOTI
journey today and we look forward to updating them on delivering on our
scale-up strategy, underpinned by a continued trajectory of profitable
growth."

 

For the purposes of the Disclosure Guidance and Transparency Rules, the total
number of ordinary shares with voting rights in the Company with effect from
18 June 2024 will be 106,359,163. This figure may be used by shareholders as
the denominator for the calculations by which they determine if they are
required to notify their interest in, or a change of their interest in, the
Company under the FCA's Disclosure Guidance and Transparency Rules.

 

END

 

For more information, please contact:

 AOTI, INC.

 Dr. Mike Griffiths, Chief Executive Officer   +44 (0)20 3727 1000

 Jayesh Pankhania, Chief Financial Officer     ir@aotinc.net (mailto:ir@aotinc.net)

 Peel Hunt LLP (Nominated Adviser and Broker)

 Dr. Christopher Golden, Patrick Birkholm      +44 (0)20 7418 8900

 FTI Consulting (Financial PR & IR)

 Ben Atwell, Simon Conway, Alex Davis          +44 (0)20 3727 1000

                                               AdvancedOxygenTherapy@fticonsulting.com
                                               (mailto:AdvancedOxygenTherapy@fticonsulting.com)

 

 

ABOUT AOTI, INC.

 

AOTI, INC. was founded in 2006 and is based in Oceanside, California, US and
Galway, Ireland, providing innovative solutions to resolve severe and chronic
wounds worldwide. Its products reduce healthcare costs and improve the quality
of life for patients with these debilitating conditions. The Company's
patented non-invasive Topical Wound Oxygen (TWO(2)(®)) therapy has
demonstrated in differentiating, robust, double-blinded randomised controlled
trials (RCT) and real-world evidence (RWE) studies to more-durably reduce the
recurrence of Diabetic Foot Ulcers (DFUs), resulting in an unprecedented 88
per cent reduction in hospitalisations and 71 per cent reduction in
amputations over 12 months. TWO(2)(®) therapy can be administered by the
patient at home, improving access to care and enhancing treatment compliance.
TWO(2)(®) therapy has received regulatory approvals from the US (FDA), Europe
(CE Mark), UK (MHRA), Health Canada, the Chinese National Medical Products
Administration, Australia (TGA) and in Saudi Arabia.

 

 

FOOTNOTES

 

1 - Excluding IPO-related costs.

 

 

THIS ANNOUNCEMENT HAS NOT BEEN APPROVED FOR THE PURPOSES OF SECTION 21 OF THE
FINANCIAL SERVICES AND MARKETS ACT 2000 (AS AMENDED) OF THE UNITED KINGDOM
("FSMA").

 

THIS ANNOUNCEMENT IS ONLY BEING DISTRIBUTED TO AND IS ONLY DIRECTED AT (I)
INVESTMENT PROFESSIONALS FALLING WITHIN ARTICLE 19(5) OF THE FINANCIAL
SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005 (THE "ORDER")
OR (II) HIGH NET WORTH ENTITIES, AND OTHER PERSONS TO WHOM IT MAY LAWFULLY BE
COMMUNICATED, FALLING WITHIN ARTICLE 49(2)(A) TO (D) OF THE ORDER OR (III)
OTHER PERSONS TO WHOM IT MAY LAWFULLY BE COMMUNICATED (ALL SUCH PERSONS
TOGETHER BEING REFERRED TO AS "RELEVANT PERSONS"). THE SECURITIES PROPOSED TO
BE SOLD ARE ONLY AVAILABLE TO, AND ANY INVITATION, OFFER OR AGREEMENT TO
SUBSCRIBE, PURCHASE OR OTHERWISE ACQUIRE SUCH SECURITIES WILL BE ENGAGED IN
ONLY WITH, RELEVANT PERSONS. ANY PERSON WHO IS NOT A RELEVANT PERSON SHOULD
NOT ACT OR RELY ON THIS ANNOUNCEMENT OR ANY OF ITS CONTENTS.

 

THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS FOR BACKGROUND PURPOSES ONLY
AND DOES NOT PURPORT TO BE FULL OR COMPLETE. NO RELIANCE MAY BE PLACED FOR ANY
PURPOSE ON THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT OR ITS ACCURACY,
FAIRNESS OR COMPLETENESS.

 

THIS ANNOUNCEMENT DOES NOT COMPRISE AN ADMISSION DOCUMENT, LISTING PARTICULARS
OR A PROSPECTUS RELATING TO THE COMPANY AND THE INFORMATION CONTAINED HEREIN
DOES NOT CONSTITUTE, OR FORM PART OF, AND SHOULD NOT BE CONSTRUED AS, ANY
OFFER OR INVITATION OR RECOMMENDATION TO SELL OR ISSUE, OR ANY SOLICITATION OF
ANY OFFER TO PURCHASE OR SUBSCRIBE FOR ANY SHARES OR OTHER SECURITIES OF THE
COMPANY IN ANY JURISDICTION, INCLUDING THE UNITED STATES, CANADA, JAPAN, SOUTH
AFRICA OR AUSTRALIA OR IN ANY JURISDICTION IN WHICH SUCH OFFER OR SALE WOULD
BE UNLAWFUL PRIOR TO REGISTRATION, EXEMPTION FROM REGISTRATION OR
QUALIFICATION UNDER THE SECURITIES LAWS OF ANY JURISDICTION. THE DISTRIBUTION
OF THIS ANNOUNCEMENT AND OTHER INFORMATION IN CONNECTION WITH ADMISSION IN
CERTAIN JURISDICTIONS MAY BE RESTRICTED BY LAW AND PERSONS INTO WHOSE
POSSESSION THIS ANNOUNCEMENT, ANY DOCUMENT OR OTHER INFORMATION REFERRED TO
HEREIN COMES SHOULD INFORM THEMSELVES ABOUT AND OBSERVE ANY SUCH RESTRICTION.
ANY FAILURE TO COMPLY WITH THESE RESTRICTIONS MAY CONSTITUTE A VIOLATION OF
THE SECURITIES LAWS OF ANY SUCH JURISDICTION. NEITHER THIS ANNOUNCEMENT NOR
ANY PART OF IT NOR THE FACT OF ITS DISTRIBUTION SHALL FORM THE BASIS OF OR BE
RELIED ON IN CONNECTION WITH OR ACT AS AN INDUCEMENT TO ENTER INTO ANY
CONTRACT OR COMMITMENT WHATSOEVER.

 

THIS ANNOUNCEMENT IS NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR
IN PART, IN OR INTO THE UNITED STATES (INCLUDING ITS TERRITORIES AND
POSSESSIONS, ANY STATE OF THE UNITED STATES AND THE DISTRICT OF COLUMBIA),
CANADA, JAPAN, SOUTH AFRICA OR AUSTRALIA OR ANY OTHER JURISDICTION WHERE IT IS
UNLAWFUL TO DISTRIBUTE THIS ANNOUNCEMENT OR WOULD REQUIRE REGISTRATION UNDER
THE LAWS THEREOF. IN PARTICULAR, THIS ANNOUNCEMENT IS NOT AN OFFER OF
SECURITIES FOR SALE IN THE UNITED STATES. THE SECURITIES REFERRED TO HEREIN
HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF
1933, AS AMENDED (THE "SECURITIES ACT") OR UNDER ANY SECURITIES LAWS OF ANY
STATE OR OTHER JURISDICTION OF THE UNITED STATES, AND MAY NOT BE OFFERED,
SOLD, TAKEN UP, EXERCISED, RESOLD, TRANSFERRED, DELIVERED OR DISTRIBUTED,
DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES EXCEPT PURSUANT TO AN
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN COMPLIANCE WITH ANY APPLICABLE
SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION OF THE UNITED STATES. THERE
WILL BE NO PUBLIC OFFER OF THE SECURITIES REFERRED TO HEREIN IN ANY
JURISDICTION, INCLUDING IN THE UNITED STATES, CANADA, JAPAN, SOUTH AFRICA OR
AUSTRALIA. THE SECURITIES REFERRED TO HEREIN HAVE NOT BEEN APPROVED OR
DISAPPROVED BY THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR ANY
OTHER SECURITIES COMMISSION OR REGULATORY AUTHORITY IN THE UNITED STATES, NOR
HAVE ANY OF THE FOREGOING AUTHORITIES PASSED UPON OR ENDORSED THE MERITS OF
ANY OFFERING BY THE COMPANY. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENCE IN THE UNITED STATES. THE SECURITIES REFERRED TO HEREIN HAVE NOT BEEN
REGISTERED UNDER THE APPLICABLE SECURITIES LAWS OF, CANADA, JAPAN, SOUTH
AFRICA OR AUSTRALIA AND, SUBJECT TO CERTAIN EXCEPTIONS, MAY NOT BE OFFERED OR
SOLD WITHIN CANADA, JAPAN, SOUTH AFRICA OR AUSTRALIA, OR TO ANY NATIONAL,
RESIDENT OR CITIZEN OF CANADA, JAPAN, SOUTH AFRICA OR AUSTRALIA.

 

THE ANNOUNCEMENT CONTAINS FORWARD-LOOKING STATEMENTS. THESE STATEMENTS RELATE,
INTER ALIA, TO THE COMPANY'S PROPOSED STRATEGY, PLANS AND OBJECTIVES.
FORWARD-LOOKING STATEMENTS ARE IDENTIFIED BY THE USE OF SUCH TERMS AS
"BELIEVE", "COULD", "ENVISAGE", "ESTIMATE", "POTENTIAL", "INTEND", "MAY",
"PLAN", "WILL" OR VARIATIONS OR SIMILAR EXPRESSIONS, OR THE NEGATIVE THEREOF.
THE FORWARD-LOOKING STATEMENTS CONTAINED IN THE ANNOUNCEMENT ARE BASED ON
CURRENT EXPECTATIONS AND ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD
CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED BY
THOSE STATEMENTS. IF ONE OR MORE OF THESE RISKS OR UNCERTAINTIES MATERIALISE,
OR IF ANY UNDERLYING ASSUMPTIONS PROVE INCORRECT, THE COMPANY'S ACTUAL RESULTS
MAY VARY MATERIALLY FROM THOSE EXPECTED, ESTIMATED OR PROJECTED. GIVEN THESE
RISKS AND UNCERTAINTIES, CERTAIN OF WHICH ARE BEYOND THE COMPANY'S CONTROL,
POTENTIAL INVESTORS SHOULD NOT PLACE ANY RELIANCE ON FORWARD-LOOKING
STATEMENTS. THESE FORWARD-LOOKING STATEMENTS SPEAK ONLY AS AT THE DATE OF THIS
ANNOUNCEMENT. EXCEPT AS REQUIRED BY LAW, THE COMPANY UNDERTAKES NO OBLIGATION
TO PUBLICLY RELEASE ANY UPDATE OR REVISIONS TO THE FORWARD-LOOKING STATEMENTS
CONTAINED IN THIS ANNOUNCEMENT TO REFLECT ANY CHANGE IN EVENTS, CONDITIONS OR
CIRCUMSTANCES ON WHICH ANY SUCH STATEMENTS ARE BASED AFTER THE TIME THEY ARE
MADE. IN PARTICULAR, NO REPRESENTATION OR WARRANTY IS GIVEN AS TO THE
ACHIEVEMENT OR REASONABLENESS OF ANY FUTURE PROJECTIONS, MANAGEMENT ESTIMATES,
PROSPECTS OR RETURNS.

 

PEEL HUNT LLP ("PEEL HUNT"), WHICH IS AUTHORISED AND REGULATED IN THE UNITED
KINGDOM BY THE FINANCIAL CONDUCT AUTHORITY (THE "FCA"), IS EXCLUSIVELY ACTING
AS SOLE NOMINATED ADVISER TO THE COMPANY IN CONNECTION WITH THE MATTERS
REFERRED TO HEREIN, AND NO ONE ELSE. PEEL HUNT WILL NOT BE RESPONSIBLE TO
ANYONE OTHER THAN THE COMPANY FOR PROVIDING THE PROTECTIONS AFFORDED TO ITS
CLIENTS, NOR FOR PROVIDING ADVICE IN RELATION TO THE CONTENTS OF THE
ANNOUNCEMENT OR ANY TRANSACTION OR ARRANGEMENT REFERRED TO HEREIN.

 

APART FROM THE RESPONSIBILITIES AND LIABILITIES, IF ANY, WHICH MAY BE IMPOSED
ON PEEL HUNT BY THE FSMA OR THE REGULATORY REGIME ESTABLISHED THEREUNDER, PEEL
HUNT DOES NOT ACCEPT ANY RESPONSIBILITY WHATSOEVER, AND MAKES NO
REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, IN RELATION TO THE CONTENTS OF
THE ANNOUNCEMENT, INCLUDING ITS ACCURACY, COMPLETENESS OR VERIFICATION OR FOR
ANY OTHER STATEMENT MADE OR PURPORTED TO BE MADE BY IT, OR ON BEHALF OF IT,
THE COMPANY, THE DIRECTORS, THE COMPANY'S INVESTMENT ADVISER OR ANY OTHER
PERSON IN CONNECTION WITH THE COMPANY, ADMISSION, THE SHARES OR THE MATTERS
REFERRED TO HEREIN, AND NOTHING IN THIS ANNOUNCEMENT IS OR SHALL BE RELIED
UPON AS A PROMISE OR REPRESENTATION IN THIS RESPECT, WHETHER AS TO THE PAST OR
FUTURE. APART FROM THE LIABILITIES AND RESPONSIBILITIES, IF ANY, WHICH MAY BE
IMPOSED ON PEEL HUNT BY THE FSMA OR THE REGULATORY REGIME ESTABLISHED
THEREUNDER, PEEL HUNT ACCEPTS NO RESPONSIBILITY WHATSOEVER FOR THE CONTENTS OF
THE ANNOUNCEMENT OR FOR ANY OTHER STATEMENT MADE OR PURPORTED TO BE MADE BY IT
OR ON ITS BEHALF IN CONNECTION WITH ANY MATTERS REFERRED TO IN THE
ANNOUNCEMENT. PEEL HUNT ACCORDINGLY DISCLAIMS ALL AND ANY LIABILITY WHETHER
ARISING IN TORT, CONTRACT OR OTHERWISE (SAVE AS REFERRED TO ABOVE), WHICH IT
MIGHT OTHERWISE HAVE IN RESPECT OF THE ANNOUNCEMENT OR ANY SUCH STATEMENT.

 

CERTAIN FIGURES CONTAINED IN THIS ANNOUNCEMENT, INCLUDING FINANCIAL
INFORMATION, HAVE BEEN SUBJECT TO ROUNDING ADJUSTMENTS. ACCORDINGLY, IN
CERTAIN INSTANCES, THE SUM OR PERCENTAGE CHANGE OF THE NUMBERS CONTAINED IN
THIS ANNOUNCEMENT MAY NOT CONFORM EXACTLY WITH THE TOTAL FIGURE GIVEN.

 

FOR THE AVOIDANCE OF DOUBT, THE CONTENTS OF THE COMPANY'S WEBSITE ARE NOT
INCORPORATED BY REFERENCE INTO, AND DO NOT FORM PART OF, THIS ANNOUNCEMENT.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  LISQKOBKOBKDPAD