AdAlta Ltd (ASX:1AD) has received its FY2023 Research and Development Tax Incentive (RDTI) refund of $2,350,940 from the Australian Government.
The clinical-stage drug discovery company received the refund for 43.5% of eligible expenditure.
The Research and Development Tax Incentive (RDTI) is an initiative of the Australian Government that offers crucial backing for the biotechnology sector among others. Companies can claim cash refunds for qualified research and development expenses under this program.
Leveraging its in-house i-body technology platform, AdAlta aims to address intricate drug targeting challenges and create a novel category of single-domain antibody-enabled protein and cell therapeutics that hold the promise for treating complex medical conditions.
The i-body technology draws inspiration from a unique antigen-binding domain initially discovered in sharks and later engineered as a human protein. The outcome is an array of distinct proteins that can engage with hard-to-reach targets, such as G-protein coupled receptors (GPCRs), implicated in various severe diseases. i-bodies have the distinction of being the first fully human single-domain antibody scaffold, and the inaugural ones based on the shark motif, to undergo clinical trials.
Loan facility extension
AdAlta is in the final stages of extending its A$4 million loan facility with the Treasury Corporation of Victoria (TCV). This extension is part of the Victorian Government's Research and Development Cash Flow Loan Initiative.
“We are grateful for the support of the Victorian Government via the R&D Cash Flow Loan Initiative,” AdAlta CEO and managing director Dr Tim Oldham said.
“It has substantially reduced the requirement to raise equity capital over the past two years and this amendment ensures we continue to use our accrued RDTI refund to fund this facility.”
The table below details the initial and revised terms of the facility, as tentatively agreed upon by AdAlta Limited and Invest Victoria. The modifications are contingent solely on the final approval from Invest Victoria and the formal signing of the extension agreement by both AdAlta Limited and the Treasury Corporation of Victoria (TCV).
The company plans to utilise a portion of its RDTI refund for the fiscal year 2023 for the initial repayment. It expects to rely on accessible RDTI financing facilities and its forthcoming fiscal year 2024 RDTI refund, largely generated from the continuing Phase I extension clinical trial, to facilitate the amended facility repayments in January and April 2024.
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