Neurizon Secures $1.5M Loan at 17% Interest Against R&D Tax Rebate
Neurizon Therapeutics has secured a $1.5 million loan against its expected 2025 R&D tax rebate, boosting liquidity without diluting shareholders. This strategic move supports ongoing development of its neurodegenerative disease treatments.
- Secured $1.5 million loan from Radium Capital
- Loan backed by a portion of 2025 Australian R&D Tax Rebate
- Non-dilutive funding preserves shareholder equity
- Interest rate set at 17% per annum
- Cash balance stood at $4.16 million as of June 30, 2025
Neurizon’s Strategic Financing Move
Neurizon Therapeutics Limited, a clinical-stage biotech company focused on neurodegenerative diseases, has taken a significant step to strengthen its financial position by securing a $1.5 million loan. This loan is uniquely structured, being secured against a portion of the company’s anticipated 2025 Research and Development (R&D) Tax Rebate from the Australian Federal Government.
By leveraging this rebate, Neurizon gains immediate access to funds without issuing new shares, thereby avoiding dilution of existing shareholders’ stakes. This approach aligns with the company’s goal to maintain operational momentum while preserving capital efficiency.
Details of the Loan Agreement
The financing was provided by Radium Capital, a specialist firm in R&D financing, and carries an interest rate of 17% per annum. Importantly, the loan represents less than 30% of the expected rebate, indicating a conservative approach to leveraging future government incentives.
As of June 30, 2025, Neurizon reported a cash balance of $4.161 million, meaning this loan supplements an already solid liquidity position. This additional funding is expected to support the advancement of Neurizon’s drug development pipeline, particularly its lead candidate NUZ-001, aimed at treating amyotrophic lateral sclerosis (ALS) and potentially other neurodegenerative conditions.
Implications for Shareholders and Future Growth
Dr. Michael Thurn, Managing Director and CEO, emphasized the attractiveness of this financing strategy, highlighting its non-dilutive nature and the alignment with the company’s operational goals. By accelerating access to anticipated government rebates, Neurizon can sustain research activities without immediate equity raises, a critical factor for biotech firms navigating costly clinical development stages.
This move also reflects a broader trend among innovative biotech companies to creatively manage funding challenges by tapping into government incentives and specialist financing solutions. For Neurizon, it signals confidence in its R&D pipeline and a commitment to advancing treatments for complex neurological diseases.
Bottom Line?
Neurizon’s savvy use of R&D rebate financing sets the stage for sustained innovation without shareholder dilution.
Questions in the middle?
- How will the 17% interest rate impact Neurizon’s overall financing costs?
- What milestones are expected for NUZ-001 development in the coming year?
- Could Neurizon pursue similar financing strategies for future R&D rebates?
