AdAlta Ltd (ASX:1AD) has received a further $1.6 million under the Victorian Government’s research and development cash flow loan initiative.
This brings the total funds secured under the facility to the maximum amount of $4 million.
The funds will further extend the company’s cash runway and be used to further progress the development of an inhaled form of lead product AD-214 for use in clinical trials in idiopathic pulmonary fibrosis patients.
It will also go towards the discovery of i-bodies against targets in AdAlta’s internal pipeline and under its collaboration with Carina Biotech.
Non-dilutive funding facility
AdAlta executed a $4 million non-dilutive funding facility with the Treasury Corporation of Victoria (TCV) as part of the initiative in September 2021.
The clinical-stage biotechnology company has met the facility requirements to receive the full $1.6 million second tranche of funds.
This initiative is administered by Invest Victoria and is designed to support innovative Victorian small to medium enterprises (SMEs), who are investing in research and development activity to develop the products, services and technologies vital to the State’s future economy.
Interest on facility advances is variable at the 'TCV 11am' loan interest rate, currently at 0.265%.
Repayment of the facility is timed to coincide with receipt of AdAlta’s FY2023 R&D Tax Incentive (RDTI) rebate, expected by October 31, 2023, but which may be repaid earlier.
The facility is secured by the FY2022 and FY2023 RDTI refunds.
Last month, the company completed a $1.25 million entitlement offer, bringing total funds raised to $5 million after the completion of a share placement in December 2021.
The funds raised will go towards developing its pipeline, which consists of four core programs, and will also provide strategic flexibility to optimise licensing partnerships as new data becomes available.
Proprietary i–body technology platform
Headquartered in Melbourne, AdAlta is a clinical-stage drug development company using its proprietary i-body technology platform to generate a promising new class of medicines.
It is using its i-body technology platform to solve challenging drug targeting problems and generate a promising new class of single domain antibody-protein therapeutics.