Celsion Receives $2 Million Allocation Through the New Jersey Technology Business Tax Certificate Transfer (NOL) Program
Non-Dilutive Funding Strengthens Balance Sheet; Extends Current Operating Runway to Over Three Years
LAWRENCEVILLE, N.J., Feb. 23, 2021 (GLOBE NEWSWIRE) -- Celsion Corporation (NASDAQ: CLSN), a clinical stage development company focused on DNA based immunotherapy and next generation vaccines, today announced it has received approval from the New Jersey Economic Development Authority’s (NJEDA) Technology Business Tax Certificate Transfer (NOL) program to sell $2 million of its unused New Jersey net operating losses (NOLs) for the tax years 2018 and 2019. The NOLs are typically sold at a small, single-digit discount to qualified companies with operations in New Jersey. As a result, the Company anticipates it will be able to transfer this credit and receive approximately $1.85 million of net cash proceeds. With this additional funding, the Company expects to report over $54 million in cash and investments at end of the first quarter ending March 31, 2021.
This competitive program, administered by the NJEDA, enables qualified companies to sell their unused New Jersey net operating losses and R&D tax credits to unaffiliated, profit-generating corporate taxpayers in the state of New Jersey, up to a current maximum lifetime benefit of $15 million per company. This allows technology and biotechnology companies with NOLs to turn their tax losses and credits into cash proceeds to fund more R&D, expand its workforce, and cover other allowable expenditures. Celsion was one of several qualifying biotechnology/technology companies to share in the funding this year.
“The NJEDA’s NOL program reinforces our belief in the State of New Jersey’s commitment to biotechnology research. With the New Jersey State Legislature increasing the maximum lifetime benefit per company from $15 million to $20 million, we plan to participate in this innovative funding program again next year,” said Michael H. Tardugno, Celsion Corporation’s chairman, president and chief executive officer. “The proceeds from the NOL sale helps augment our cash position, and together with the recent $35 million common stock only financing in January 2021, at the current spending rate, extends our operating runway into the first quarter of 2024. With this new, non-dilutive funding, we are positioned to continue to advance our recently announced vaccine initiative. Additionally, we expect these funds to cover full patient enrollment and primary efficacy read-out of the Phase I/II OVATION 2 Study for GEN-1, depending upon the extent to which Progression Free Survival (PFS) is achieved. We appreciate the support and commitment of the NJEDA in facilitating our continued innovation and applaud their efforts to foster continued investment and growth for businesses in New Jersey.”