- AdAlta (1AD) executes a non-dilutive funding agreement with Radium Capital to help accelerate the company’s discovery activities and expand its pipeline
- The loan facility will provide immediate funds equivalent to the majority of AdAlta’s accrued research and development tax incentive (RDTI) rebate
- AD1 has the ability to access up to 80 per cent of its accrued RDTI rebate, being $1.68 million for the nine months ending March 31
- Managing Director and CEO Tim Oldham says the facility will bring forward future cash flow as 1AD progresses its transformation to a multi-asset company
- AdAlta shares are in the grey at 13 cents apiece at 2:27 pm AEST
AdAlta (1AD) has executed a non-dilutive funding agreement with Radium Capital, which is pegged to help accelerate the company’s discovery activities and expand its pipeline.
Based in Melbourne, 1AD is a clinical-stage biotechnology company focussed on developing novel therapeutic products from its i-body platform.
The loan facility will provide AdAlta with immediate funds equivalent to the majority of is accrued research and development tax incentive (RDTI) rebate, initially for the nine months ending March 31.
Under the facility, the company can access up to 80 per cent of the accrued RDTI rebate, with eligible expenditure first requiring verification by a Radium-approved accounting firm.
According to 1AD, the advance for the nine-month timeframe comes to $1.68 million and will be received before the end of the current financial year.
Further, interest on any facility advances will accrue at 14 per cent per annum. Repayment is timed to coincide with receipt of AdAlta’s RDTI refund for the 2021 financial year, expected by October 31.
Managing Director and CEO Tim Oldham said of the deal: “This facility is a prudent option to bring forward future cash flow as we progress our transformation to a multi-asset company.”
On Friday, AdAlta shares were trading in the grey at 13 cents apiece at 2:27 pm AEST.