On January 6, 2021 VolitionRx Limited (NYSE AMERICAN: VNRX) ("Volition") reported it has been awarded additional non-dilutive funding totaling approximately $4 million from the Walloon Region and Namur Invest, Belgium (Press release, VolitionRX, JAN 6, 2021, View Source [SID1234573592]). To date, Agencies from the Walloon Region have awarded Volition an aggregate of approximately $13 million in non-dilutive funding including this most recent award. This additional funding consisted of a cash grant of $1.3 million and $2.7 million in loans.
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"It is a key part of our financing strategy to actively seek non-dilutive funding as this provides additional cash at favorable terms to support the Company’s continued development, and this latest funding takes the total non-dilutive funding to-date from all sources to over $15 million," commented Cameron Reynolds, President and Chief Executive Officer of Volition. Mr. Reynolds added, "We are delighted with the great progress we are making on so many fronts and look forward to achieving many milestones throughout this year."
Dr. Gaetan Michel, Chief Executive Officer of Volition’s subsidiary, Belgian Volition SRL, commented, "We are delighted with the financial assistance that we have received from the Walloon Region and other agencies and would like to thank Monsieur Willy Borsus, Vice-President of the Walloon Government, the Walloon Minister for Economy as well as Nicolas Delahaye and Renaud Hattiez from Namur INVEST for their continued support. This funding will support the purchase and fit-out of Silver One, our new production facility and a number of cutting-edge projects."
About the Funding
The grant of approximately $1.3 million (Euro 1.1 million) from the Walloon Region is to support a project entitled Epigenetic Modifications of Nucleosomes Associated with Cancer.
The unsecured loan of approximately $1.1 million (Euro 929, 432) from the Walloon Region is to support the research and technology transfer for the production of recombinant nucleosomes. The repayment terms are split into 2 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.
The unsecured loan of approximately $600,000 (Euro 495,000) also from the Walloon Region is to support the analysis of tumor DNA using an innovative nucleosome immunoprecipitation method.
The repayment terms are also split into 2 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 provided a loan of approximately $1 million (Euro 830,000) to support the purchase and fit-out of the Silver One production facility. The loan bears an interest rate of 4% and is repayable over ten years ending March 2031