Acrux Limited secures short term funding facility with Radium Capital

Acrux Limited (ASX: $ACR) has secured a non-dilutive short-term funding facility for its R&D Tax Incentive Rebate ('RDTI') with Radium Capital. The company received $1,487,144 on 28 June 2024, representing 80% of the estimated RDTI for the ten months to 30 April 2024. This short term facility will be repaid later in the 2024 calendar year when the FY24 RDTI is received from the Australian Tax Office and is secured against the RDTI receivable balance, attracting an interest charge of 1.33% per month. The funding facility aims to better align the timing of cashflow with R&D expenditure and RDTI, serving as a tool to manage the company's working capital.

Executive Commentary on Short Term Funding Facility

Acrux is pleased to have secured a short term funding facility with Radium Capital, which will provide the necessary financial support to manage our R&D Tax Incentive Rebate. This facility allows us to optimize our working capital and align our cashflow with R&D expenditure, ensuring a more efficient financial management approach. We are confident that this strategic move will positively impact our operations and support our ongoing commitment to developing and commercializing pharmaceutical products. We look forward to leveraging this funding to further advance our pipeline of topically applied pharmaceutical products and explore new opportunities for growth and collaboration.

Summary of Acrux's Short Term Funding Facility

Acrux Limited (ASX: $ACR) has successfully secured a non-dilutive short-term funding facility with Radium Capital to support its R&D Tax Incentive Rebate. The company received $1,487,144, representing 80% of the estimated RDTI for the ten months to 30 April 2024. This funding, aimed at better aligning cashflow with R&D expenditure, will be repaid later in the 2024 calendar year when the FY24 RDTI is received from the Australian Tax Office. The facility is secured against the RDTI receivable balance, with an interest charge of 1.33% per month. Acrux's strategic move to secure this funding reflects its commitment to efficient financial management and its dedication to advancing pharmaceutical products. The company remains well positioned to explore commercial partnering and product development opportunities, leveraging its expertise and resources to bring affordable products to the market.