Proactive Investors - Run By Investors For Investors

Redx Pharma gets near £870,000 boost to working capital after repayment of loan previously written-off

Following the sale of significant assets by Redag Crop Protection Ltd, the repayment criteria for a loan previously granted to Redag by Redx in October 2014 has been met
Loan repayment
Redx confirmed it received a full cash repayment of £869,126, representing the original capital amount of £713,948 plus outstanding interest

Redx Pharma PLC (LON:REDX) has received an unexpected cash injection following the repayment of a loan it made which had previously been written off in its accounts, giving it a near £870,000 boost to working capital.

The AIM-listed drug discovery and development company, focused on cancer and fibrosis, said that following the sale of significant assets by Redag Crop Protection Ltd (Redag), the repayment criteria for a loan previously granted to Redag by the company in October 2014 has been met.

READ: Redx Pharma exploring options with interested parties for its NBTI programme after Deinove declines to exercise option

As a result, the group confirmed, it has now received a full cash repayment of £869,126, representing the original capital amount of £713,948 plus outstanding interest to date.

The group said, as disclosed in its accounts for the year ended 30 September 2018, the loan was originally treated as a non-current receivable, subsequently impaired, and ultimately derecognised as an asset in the accounts for the year ended 30 September 2017, as a result of the conditionality attached to the repayment.

Notwithstanding this,  it added, the directors continued to seek repayment and are pleased that this has now been achieved.

The funds will be used to augment working capital and, accordingly, the cash receipt will be disclosed in the group’s statement of comprehensive income for the year ending 30 September 2019.

View full REDX profile View Profile

Redx Pharma Plc Timeline

Related Articles

antibodies
May 02 2019
Avacta is using Affimers to develop its own cancer therapy, but it also licenses the technology to other companies, including major pharma group ModernaTX and LG Chem Life Sciences
A woman with severe depression
April 25 2019
The New York clinical-stage biopharmaceutical company has several drugs in the pipeline capable of generating hefty revenue
Challenge trials can speed up vaccine development
May 30 2019
The challenge trial charts the entire disease life cycle from healthy to sick and back to health.

© Proactive Investors 2019

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use