VolitionRx Limited (NYSEAMERICAN:VNRX) announced Wednesday that it has received an additional $4 million in non-dilutive funding from a Belgian region.
The funds will go towards developing the epigenetics company’s Silver One production facility in Belgium, where the Austin, Texas-based company is working on diagnostic blood tests.
Volition said the additional funding consists of a cash grant of $1.3 million and $2.7 million in loans from the Walloon Region and Namur Invest, Belgium.
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To date, the group has received approximately $13 million in non-dilutive funding from agencies in the Walloon region of the country.
Volition CEO Cameron Reynolds told shareholders that non-dilutive funding is a key part of the firm’s financing strategy as it provides additional cash at favorable terms to support the company's continued development.
“(This) latest funding takes the total non-dilutive funding to-date from all sources to over $15 million," Reynolds said in a statement. "We are delighted with the great progress we are making on so many fronts and look forward to achieving many milestones throughout this year."
The financing consisted of a grant worth 1.1 million Euros (US$1.3 million) from the Walloon Region to help support a project that examines epigenetic modifications of nucleosomes associated with cancer.
A loan of 929,432 Euros (US$1.1 million) from the Walloon Region will go towards research and technology transfer for the production of recombinant nucleosomes. Repayment terms are spilt into two parts: repayment independent of revenues (limited to 30% from 2022 to 2036) and repayment revenue dependent at 4.34% of revenue generated on this product from launch up to 2036.
Another unsecured loan from the Walloon Region of 495,000 Euros (US$600,000) will support the analysis of tumor DNA using an innovative nucleosome immunoprecipitation method. Repayment terms are also split in two parts: repayment independent of revenues (limited to 30% from 2023 to 2034) and repayment revenue dependent at 2.89% of revenue generated on this product from launch up to 2032.
Namur Invest also provided a loan of 830,000 Euros (US$1 million) to support the purchase and retrofit of the Silver One production facility. The loan bears an interest rate of 4% and is repayable over ten years ending March 2031.
Volition's research and development activities are centered in Belgium, with a small laboratory in California and additional offices in Texas, London and Singapore.
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