Recce Pharmaceuticals Ltd (ASX:RCE, OTC:RECEF) has boosted its finances by A$6,219,241 after receiving two research and development (R&D) rebates.
This comprises A$4,311,202 from the Australian Tax Office for the year ending June 30, 2022, and an advance payment of A$1,908,039 from Radium Capital, as a proportion of the company’s 2023 financial year R&D applicable expenditure.
The A$4,311,202 reflects the anti-infective company’s expanded pre-clinical and clinical R&D activities undertaken locally and overseas during the 2022 financial year, with the funds provided to the company in cash, caveat free.
The Australian Government’s 43.5% research and development tax incentive rebate is typically reserved for Australian-based R&D only.
Recce was in the unique situation of being granted the ability to capture 43.5% of its R&D applicable activities overseas as well, as reflected in this rebate.
The advance payment of A$1,908,039 received from Radium Capital reflects quarterly R&D expenditure during the July 1-November 30, 2023, financial year period.
Important cash injection
The company may use Radium’s services to access up to 80% of the anticipated R&D rebate accruing interest at the compounded rate of 1.25% per month.
Recce Pharmaceuticals chief executive officer James Graham said: “The total cash amount of A$6,219,241 received from the R&D Tax Incentive Rebate and Radium’s advanced payment is most welcomed and provides the company with an important cash injection to continue our R&D activities while supporting the expansion and acceleration of our ongoing and upcoming clinical programs.”