Pharmaxis to Receive up to $4.4 Million Prepayment of its Expected 2023 R&D Tax Incentive Claim
Release Date: 08/08/2023 8:29am
Pharmaxis Ltd (ASX: PXS) today announced it had executed a $4.4 million loan facility agreement with a fund managed by Paddington Street Finance to provide advanced access to a substantial part of the Company’s 2023 anticipated research and development tax incentive.
The Paddington Street Finance loan provides up to 85% of the Company’s anticipated 2023 R&D tax incentive of $5.2 million. The loan is to be repaid by the earlier of 31 December 2023 or receipt of the tax incentive payment which is expected before the end of 2023. The loan is secured by way of security over substantially all the assets of Pharmaxis. Funds borrowed will be used for general working capital purposes, including to advance the Company’s clinical stage development pipeline.
Pharmaxis CEO Mr Gary Phillips commented; “We are pleased to obtain this short term loan with Paddington Street Finance. It provides Pharmaxis with timely access to its 2023 R&D tax incentive by way of a facility that is a common feature of research based companies in Australia.”
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