RespireRx Pharmaceuticals (OTC:RSPI) Inc said that as of January 11, 2023, it has established a new, currently wholly-owned, unlisted public company in Australia called ResolutionRX.
The company said that this is the first in a series of steps all for the purpose of developing compounds that target the body’s endocannabinoid system, in particular the repurposing of dronabinol which as an endocannabinoid CB1 and CB2 receptor agonist, for the treatment of obstructive sleep apnea.
It noted that one of the main purposes for the creation of ResolutionRX was to allow it to participate in the Australian research and development tax credit, a 43.5% refund of qualified and development expenditures as reported on ResolutionRX’s Australian tax return.
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RespireRX chief financial officer Jeff Margolis said creating ResolutionRX has made it possible to access finance channels separate from and possibly in addition to those of the company, in order to unlock the unrealized asset values of its pharmaceutical cannabinoid program."
“We also believe that this will enable us to accelerate the development of dronabinol for OSA with cost-effective access to capital while accessing certain financial incentives available in Australia,” he added in s statement.
RespireRX interim CEO Arnold Lippa commented: “I hope that this approach might interest other small biotech companies to seek novel approaches for overcoming some of the limitations experienced in the United States financial markets.”
RespireRX is a leader in the discovery and development of medicines for the treatment of psychiatric and neurological disorders, with a focus on treatments that address conditions affecting millions of people, but for which there are few or poor treatment options, including obstructive sleep apnea, attention deficit hyperactivity disorder, epilepsy, pain, recovery from spinal cord injury, and certain neurological orphan diseases.
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