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.”
“Throughout the course of 2020 and into the first quarter of 2021, Celsion has sought innovative ways to finance our clinical development programs in some of the world’s most challenging cancers. Balancing the high cost of research and drug development without losing focus on our shareholders is reflected in our successful application to sell $15 million of our New Jersey NOL’s over the past three years,” said Jeffrey W. Church, Celsion Corporation’s Executive Vice President and CFO. “With the support of our shareholders, we look forward to an exciting and promising year ahead.”
For more details on this funding for this year’s NOL program, please visit www.njeda.com.
About Celsion Corporation
Celsion is a fully integrated, clinical stage biotechnology company focused on advancing a portfolio of innovative cancer treatments, including DNA-based immunotherapies and next generation vaccines, through clinical trials and eventual commercialization. The company’s product pipeline includes GEN-1, a DNA-based immunotherapy for the localized treatment of ovarian cancer. PLACCINE, a non-clinical stage DNA plasmid vaccine platform, is in early development with its first application targeting SARS-CoV-2. The company’s product pipeline includes GEN-1, a DNA-based immunotherapy for the localized treatment of ovarian cancer. ThermoDox®, a proprietary heat-activated liposomal encapsulation of doxorubicin, is under investigator-sponsored development for several cancer indications. Celsion also has two feasibility stage platform technologies for the development of novel nucleic acid-based immunotherapies and other anti-cancer DNA or RNA therapies. Both are novel synthetic, non-viral vectors with demonstrated capability in nucleic acid cellular transfection. For more information on Celsion, visit www.celsion.com.
Forward-looking statements in this news release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are subject to a number of risks and uncertainties, many of which are difficult to predict, including, unforeseen changes in the course of research and development activities and in clinical trials; the uncertainties of and difficulties in analyzing interim clinical data, particularly in small subgroups that are not statistically significant; FDA and regulatory uncertainties and risks; the significant expense, time and risk of failure of conducting clinical trials; the need for Celsion to evaluate its future development plans; possible acquisitions or licenses of other technologies, assets or businesses; possible actions by customers, suppliers, competitors or regulatory authorities; and other risks detailed from time to time in the Celsion's periodic filings with the Securities and Exchange Commission. Celsion assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise.
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