Join our daily newsletter At The Bell to receive exclusive market insights
- Dimerix (DXB) is set to pocket $2.8 million as a prepayment of a research and development (R&D) tax incentive claim
- DX8 penned a funding deal with Radium Capital to gain early access to the equivalent of 80 per cent of its accrued R&D tax incentive for July 1 to December 31 last year
- The company says the funds strengthen its financial position, allowing it to push forward with its phase three FSGS kidney clinical trial to test the safety of DMX-200
- The advance will be received in the next week, accruing interest at a compounded rate of 1.17 per cent per month
- Dimerix shares are up 8.33 per cent to 13 cents at 10:50 am AEDT
Dimerix (DXB) is set to pocket $2.8 million as a prepayment of a research and development (R&D) tax incentive claim.
The company has penned a non-dilutive funding agreement with Radium Capital to gain early access to the equivalent of 80 per cent of its accrued research and development tax incentive for July 1 to December 31 last year. The deal allows for a further advance payment upon each quarter’s end.
The initial advance of $2,842,500 was based on DX8’s eligible R&D tax incentive expenditure verified by an independent accounting firm.
The company said the funds strengthened its financial position, allowing it to push forward with its phase three Focal Segmental Glomerulosclerosis (FSGS) kidney clinical trial, which will test the safety of the company’s DMX-200 product.
The advance will be received in the next week, accruing interest at a compounded rate of 1.17 per cent per month, with the repayment timed to coincide with receipt of the company’s 2023 R&D refund, expected by September 30, 2023.
The company reported a cash position of $5.7 million as of 31 December 2022.
Dimerix shares were up 8.33 per cent to 13 cents at 10:50 am AEDT.
