AdAlta has received an institutional investment of up to $3m from New Life Sciences LLC and $700,000 from Meurs Group
The two investments will allow the company to accelerate the recent SYNBV MoU
An extended final repayment has also been secured on its existing Treasury Corporation of Victoria (TCV) loan facility
Special report: An institutional investment of up to $3.7m, including up to $3m to be invested by New Life Sciences Capital, provides important strategic flexibility for AdAlta as it looks to grow other aspects of the business.
AdAlta’s (ASX:1AD) lead asset, AD-214, is being developed for fibrotic diseases, including the debilitating and fatal disease, Idiopathic Pulmonary Fibrosis (IPF).
A Phase I extension study of AD-214 evaluated the safety and tolerability of multiple intravenous (IV) 10 mg/kg doses in healthy volunteers and was essential for both progressing to Phase II studies and for partnering.
While results are now being shared with a list of potential partners in a view to progress licencing or financing a transaction in the near term, 1AD is also progressing its strategy to secure new clinic assets.
Funding to support partnerships
The company has received up to $3m from New Life Sciences LLC and up to $700,000 from existing shareholder Meurs Group to support and accelerate the recently announced partnerships with venture capital firm SYNthesis BioVentures Fund (SYNBV).
The two companies are collaborating to form AdCella, a jointly owned entity aimed at facilitating the entry of innovative cellular immunotherapies from Asia into western regulated markets, leveraging AdAlta’s i-body technology.
AdCella, once formed, will aim to identify partners across Asia capable of developing multifunctional cellular immunotherapies targeting solid tumours.
It will license or acquire commercialisation rights for these products outside Asia, in return for conducting initial clinical trials in Australia and integrating 1AD’s i-body technology into the partner companies’ future product pipeline.
AdAlta says in this way, many of the initial assets would be substantially de-risked because they will have already generated clinical data in their “home” markets.
Looking beyond AD-214
“This financing provides important strategic flexibility for AdAlta,” 1AD CEO and MD Tim Oldham says.
“Through the new support from New Life Sciences Capital and continued support from existing shareholder the Meurs Group, we are able to look beyond potential AD-214 transactions.
“We can now advance our cellular immunotherapy collaboration with SYNthesis BioVentures and our internal i-body programs with greater certainty,” he says.
“The flexible nature of this investment means we only draw down what we need and can continue to maximise any non-dilutive financing that may come from transactions.”
Extension of Victorian government RDTI loan facility
1AD has also secured an extended final repayment date on its existing Treasury Corporation of Victoria (TCV) loan facility as part of the Victorian government’s R&D Cash Flow Loan Initiative.
“We are grateful for the continued support of the Victorian Government for AdAlta via the R&D Cash Flow Loan Initiative and for the biotech sector generally,” Oldham says.
“This amendment aligns our repayment date with the anticipated receipt of our next RDTI rebate payment.”
This article was developed in collaboration with AdAlta, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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