Soligenix receives $521,000 from New Jersey tax program
The company received the non-dilutive financing as part of New Jersey's Technology Business Tax Certificate Transfer Program. The program gives approved, unprofitable biotechnology companies the opportunity to sell unused net operating loss carryovers and unused research and development tax credits for at least 80 percent of the value of the benefits. Unaffiliated, profitable corporate taxpayers are then able to buy the benefits from the biotechnology companies.
"As we are always looking for non-dilutive ways to fund our company, we are once again very pleased with NJEDA's decision to approve our application in this year's program," Christopher J. Schaber, Soligenix's president and CEO, said. "This NOL funding increases our cash position to about $3.3 million. We are very thankful for New Jersey's continued support of its biotechnology industry."
The program allows Soligenix to turn tax losses and credits into cash proceeds to fund more research and development, buy equipment and facilities or cover other approved expenditures.
Soligenix has several products in its development pipeline including VeloThrax, a vaccine against anthrax exposure, RiVax, a ricin countermeasure, and OrbeShield, a drug that treats gastrointestinal acute radiation syndrome. VeloThrax and RiVax are the subject of a National Institute of Allergy and Infectious Diseases grant worth $9.4 million to develop the company's ThermoVax vaccine heat stabilization technology.