Neurotech International Ltd (ASX: NTI), a clinical-stage biopharmaceutical development company focused predominantly on paediatric neurological disorders with a broad-spectrum oral cannabinoid drug therapy called NTI164, has announced it has secured a $3.15 million loan. The company, which has completed several clinical trials in Autism Spectrum Disorder (ASD), Paediatric Autoimmune Neuropsychiatric Disorders Associated with Streptococcal Infections (PANDAS) and Paediatric Acute-Onset Neuropsychiatric Syndrome (PANS) (collectively PANDAS/PANS), along with Rett Syndrome, confirmed it has entered into a secured loan agreement with Rockford RDF Pty Ltd as trustee for the Rockford RDF Unit Trust (Rockford). This financial injection is earmarked to support Neurotech’s operations into the coming years.
The $3.15 million loan is notable for providing Neurotech with non-dilutive funding. It is secured against the company’s anticipated refundable research and development (R&D) tax incentive offsets for the financial years 2026 and 2027. The proceeds from this loan are strategically allocated to several key areas. These include the advancement of the company’s crucial Phase III Clinical Studies in Autism Spectrum Disorder, funding ongoing research and development activities, and addressing general working capital requirements to ensure continued operational stability.
Under the terms of the agreement, the loan amount of $3.15 million excludes a 1.0% establishment fee, which will be capitalised into the loan balance at drawdown. The loan carries an interest rate of 16.0% per annum, calculated daily on the outstanding balance, with a default interest rate of 20.0% per annum. The facility has a minimum term of 120 days from the agreement date and a maturity date of 31 December 2027, with an option for the company to extend this by 30 days under specific conditions. Repayment of the facility is expected to occur in two tranches, funded by the company’s anticipated FY2026 and FY2027 refundable R&D tax incentive offsets, over which Rockford holds a first-ranking security.
