Join our daily newsletter At The Bell to receive exclusive market insights
- Rewardle (RXH) secures a $290,000 research and development financing facility to drive growth
- Rewardle participates in the Australian Government’s R&D Tax Incentive scheme, however refunds are usually received between three and nine months post financial year
- The financing facility established with lender Radium will mature either by November 30 or on receipt of the FY22 R&D rebate
- The company says this allows it to maximise its fee to equity conversion opportunities, while still having enough working capital to support new growth
- Shares are trading grey at 1.1 cents at 3:43 pm AEST
Rewardle (RXH) has secured a $290,000 research and development financing facility to drive growth.
The software business has developed a ‘business to business to consumer’ software platform dubbed the Rewardle platform.
The marketing and payments platform allows members to connect with local businesses across Australia on a single cloud based platform powered by Big Data analysis.
The company has a long term strategy to leverage its operational capabilities, expertise and intellectual property to develop new opportunities and tap in to new markets.
To assist with this, RXH has established a financing facility for its research and development activities in the 2022 financial year with lender Radium Capital.
Rewardle participates in the Australian Government’s R&D Tax Incentive scheme, however refunds are usually received between three and nine months post financial year.
The facility established with Radium essentially fills the gap between the company’s investments in research and development activities and when it receives the government refund.
The loan amount is $289,035 and will mature either by November 30 or on receipt of the FY22 R&D rebate.
Rewardle’s Founder and Executive Chairman, Ruwan Weerasooriy, said the financing allows the company to “continue aggressively maximising” its fee to equity conversion opportunities, while still having enough working capital to support new growth.
“While we find ourselves emerging from the COVID-19 pandemic to face macroeconomic headwinds, we’re confident that our multi-dimensional growth strategy and agile operating structure can be adapted as required so the business can operate and grow without requiring additional capital,” Mr Weerasooriya said.
Shares were trading in the grey at 1.1 cents each at 3:43 pm AEST.
