Immuron (ASX: IMC) has secured a A$1.4 million (C$1.5 million) funding agreement with Paladin Labs which the company will use to continue expansion of its Travelan® product into other territories.
Travelan® is a novel, over the counter product that is up to 90% effective in preventing travellers’ diarrhoea.
Under the agreement, the initial drawdown will be C$1 million, including a coupon rate of 10% and not repayable until three years from the date of initial drawdown.
Paladin has the right to convert all or part of the funds advanced into fully paid ordinary Immuron shares at an agreed conversion price of $A0.0473 per share.
Under a licence agreement signed by both parties in late November, Paladin receives exclusive rights to commercialise Travelan in certain territories, including Canada, Latin America and sub-Saharan Africa.
Immuron received an upfront licence fee of C$500,000 for those territories from Paladin and will receive additional performance milestone payments over the term of the licence.