Island Pharmaceuticals Ltd (ASX:ILA) has secured a loan facility for the 2024 financial year with Radium Capital, providing an injection of funding ahead of an anticipated research and development tax incentive refund from the Australian Government.
The antiviral drug company expects to receive the initial advance under the facility – for the period ending November 20, 2023 – of $386,300 by the end of the calendar year.
Under the loan facility, Island can access up to 80% of its accrued RDTI rebate, as determined by a Radium-approved accounting firm based on eligible expenditure.
Straightforward and effective
“A specialist loan facility of this nature secured against the R&D rebate is an attractive form of non-dilutive funding for Island,” Island Pharmaceuticals managing director and CEO Dr David Foster said.
“We are pleased to have worked with Radium Capital on this straightforward and effective debt facility.”
ILA says early access to these funds provides additional working capital for the advancement of its lead asset against dengue fever, ISLA-101.
Island is in the process of completing a Single Ascending Dose study for ISLA-101, with data expected early 2024 before it then proceeds with a Phase 2a study, which the company expects to take place soon after.