ASX-listed biopharmaceutical company Dimerix (ASX:DXB) reports it is set to receive $2.8 million following its entering into a non-dilutive funding agreement with Radium Capital in order to receive early access into part of the Research and Development (R&D) tax incentive.
The company says the early access to forecast FY23 R&D Tax Incentive (RDTI) provides Dimerix with immediate funds, which will strengthen its financial position in order to continue executing upon its phase three FSGS kidney clinical trial.
Adding on, Dimerix notes the immediate funds will be equivalent to 80% of its accrued R&D tax incentive for the period 1 July 2022 – 31 December 2022, and will also allow for a further advance payment upon each quarter end.
“This non-dilutive facility is a prudent option to strengthen our balance sheet”
The company also notes the initial advance of $2,842,500 was based on eligible R&D Tax incentive expenditure that has been verified by an independent accounting firm.
In addition, it is reported the advance will be received within the next week accruing interest at the compounded rate of 1.17% per month, and that the repayment is timed to coincide with receipt of the company’s 2023 R&D refund, which is expected by 30 September 2023.
Speaking on the tax incentive claim, Dimerix Chief Executive Officer (CEO) and Managing Director Dr Nina Webster said: “This non-dilutive facility is a prudent option to strengthen our balance sheet and allows us to continue to progress towards commercialisation of our lead candidate, DMX-200.”
As of 31 December 2022, Dimerix reported a cash position of $5.7 million.
Dimerix is an ASX-listed clinical-stage pharmaceutical company developing innovative new therapies in areas with unmet medical needs for global markets. The company is currently developing its proprietary product DMX-200 for FSGS, respiratory complications associated with COVID-19, and diabetic kidney disease.