Anteris Technologies Ltd (ASX:AVR) (FRA:DDF) has entered into a short-term facility for the advance of $1.22 million which provides immediate funds equivalent to the company’s forecast research and development (R&D) tax incentive offset for the majority of the 2020 calendar year.
The Australian Government’s R&D Tax Incentive encourages companies to engage in R&D, by providing a refundable tax offset for eligible R&D activities - assisting businesses to recover some of their related costs.
The company plans to use these funds for further research and development activities.
Developing ADAPT® technology
The R&D refund confirms Anteris’ ongoing commitment to invest in, research and develop its ADAPT® technology and product development pipeline including DurAVRTM, Anteris’ 3D single-piece Aortic Valve.
The Anteris DurAVR™ aortic replacement valve addresses the acute need in terms of superior hemodynamic profile as well as chronic needs in its ability to sustain that profile longer over the lifetime of the patient.
The proven benefits of its ADAPT® tissue technology, paired with the unique 3D single piece aortic valve design of DurAVR™, has the potential to deliver a functional cure to aortic stenosis patients and provide a much-needed solution to the challenges facing heart surgeons today.
Facility terms
The key terms of the facility are:
- The advance is equivalent to the expected R&D claim for the 10 months ended October 31, 2020;
- Interest rate of 1.15% per month for the period of the facility;
- The advance may be repaid by the company at any time with a minimum three-month effective interest term;
- The facility approval fee is 0.75%, being $9,150; and
- The advance is primarily secured against the R&D refund due in 2021;
The facility is provided by Mitchell Asset Management Pty Ltd.