Celsion Provides Update on its Application to Sell $1.5 Million of New Jersey Net Operating Losses
November 08 2021 - 9:00AM
Celsion Corporation
(NASDAQ: CLSN), a
clinical-stage development company focused on DNA-based
immunotherapy and next-generation vaccines, today announced it was
notified by the New Jersey Economic Development Authority (NJEDA)
that the Company’s application to sell $1.5 million of its
unused New Jersey net operating losses (NOLs) for the tax
year 2020 under the Technology Business Tax Certificate Transfer
(NOL) program has been approved the NJEDA’s Board of Directors. The
Company anticipates it will be able to transfer this credit to a
qualified company and receive approximately $1.4
million of net cash proceeds. With this additional funding,
the Company expects to report over $62 million in cash
and investments at end of the third quarter ended September
30, 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 $20 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 is
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, this has allowed Celsion to
continue participating in this innovative funding program,”
said Michael H. Tardugno, Celsion Corporation’s chairman,
president and chief executive officer. “The proceeds from the NOL
sale will help augment our strong cash position, and together with
recent common stock only financings in the first half of
2021, at the current spending rate, extends our operating runway
through 2024. With this non-dilutive funding, we are positioned to
continue to advance our DNA vaccine initiative. Additionally, we
expect these funds to cover full patient enrollment and primary
efficacy read-out of the Phase 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
2021, Celsion has sought innovative ways to finance our
clinical development programs and research initiatives. Balancing
the high cost of research and drug development without losing focus
on our shareholders is reflected in our successful application to
sell $16.5 million of our New Jersey NOL’s over the past
four years,” said Jeffrey W. Church, Celsion Corporation’s
executive vice president and chief financial officer. “With the
support of our shareholders and the State of New Jersey, 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 immunotherapies and
DNA-based therapies; and a platform for the development of nucleic
acid vaccines currently focused on SARS-CoV2. The company’s product
pipeline includes GEN-1, a DNA-based immunotherapy for the
localized treatment of ovarian cancer. Celsion also has two
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.
Celsion’s wholly owned subsidiary, Celsion GmbH, is managing
ThermoDox®, a proprietary heat-activated liposomal encapsulation of
doxorubicin, which is under investigator-sponsored development for
several cancer indications. For more information on Celsion,
visit www.celsion.com and www.celsiongmbh.com.
Forward-looking Statements
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.
Celsion Investor
ContactJeffrey W.
Church609-482-2455jchurch@celsion.com
LHA Investor RelationsKim
Sutton Golodetz212-838-3777kgolodetz@lhai.com
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