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Neurizon Therapeutics (ASX:NUZ) retreated in intra-day trade on Wednesday after inking a non-dilutive loan agreement for $1.5 million to fund its current and future operations seeking to treat Huntington’s with its flagship drug NUZ-001.
The funds in question are secured against its expected Federal Government R&D Tax Incentive scheme rebate for FY25.
Specialist R&D financing firm Radium Capital has stumped up the loan, repayable from Neurizon’s 2025 R&D Tax Rebate at an interest rate of 17%. The loan, Neurizon reports, represents less than 30% of the anticipated R&D Tax Rebate.
“We are very pleased to have accelerated a portion of our expected 2025 R&D Tax Rebate through a specialist loan agreement. This non-dilutive funding arrangement enhances our near-term liquidity position and complements our existing healthy cash balance, allowing us to confidently advance our exciting pipeline of work”, CEO Dr. Michael Thurn said.
This type of loan is regarded by Neurizon, and other companies that conduct research, as an attractive and capital-efficient funding mechanism to tap funds in advance of receiving an R&D Tax Rebate.
NUZ has been trading flat at 16.5 cps in early afternoon trade.
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