ChitogenX Inc (CSE:CHGX, OTCQB:CHNXF) told investors that it made significant progress in deleveraging its balance sheet and improving its working capital as it continued to advance its ORTHO-R technology platform during the second quarter of its 2024 financial year.
Among the corporate highlights for the quarter ended July 31, 2023, the company noted an agreement with Bruder Consulting & Venture Group to serve as its exclusive advisory firm for the pursuit of new strategic development partnerships. The agreement is also aimed at accelerating ongoing partnership discussions for its ORTHO-R proprietary regenerative medicine platform and associated assets.
The company also highlighted the closing of the first tranche of its amended non-brokered private placement offering of units for $3.86 million in May 2023, followed by the closing of the second tranche in June for a total consideration of $288,391.40.
Following the end of the quarter, along with its results announcement, the company announced it closed the third tranche on September 29 for a total consideration of $688,271.45.
All three tranches included debt conversions from holders of convertible debentures in the company.
"The debt conversion and funds raised during the quarter have contributed to significantly deleveraging our balance sheet and improved our working capital,” ChitogenX senior vice president and chief financial officer Luc Mainville commented.
“The conclusion of enrollment of our Phase I/II rotator cuff trial and other initiatives have led to a significant reduction of our expenses and financial charges. We anticipate continued control over our expenses over the coming quarters but material R&D progress as we take full advantage of our 3-year $3.4 million R&D grant.”
Also subsequent to the end of the quarter, the company concluded the enrolment of 20 subjects in its US multi-site rotator cuff tear repair Phase I/II clinical trial.
Additionally, it received a notice of allowance for a key patent in the US and Canada. The patents make the Chitosan-based biopolymer scaffold proprietary without the need for it to be combined with plasma-rich platelets or other blood products as was previously the case.
"The attractiveness of our proprietary scaffold for use in regenerative medicine continues to grow. The recent grant of a key patent in the US and in Canada, has extended our proprietary properties well beyond orthopedic applications,” ChitogenX president and CEO Philippe Deschamps said.
“We intend to leverage our proprietary leadership in regenerative medicine by combining our technology platform with biologics, therapeutic agents and other blood products applications.
“Leveraging our proprietary platform to secure strategic development partnership agreements remains our top priority at the moment while continuing to advance our clinical and other R&D initiatives,” Deschamps added.
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