Celsion Receives $2 Million Allocation Through the New Jersey Technology Business Tax Certificate Transfer (NOL) Program
February 23 2021 - 8:00AM
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
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. ChurchExecutive Vice President and
CFO609-482-2455jchurch@celsion.com
LHA Investor RelationsKim
Sutton Golodetz212-838-3777kgolodetz@lhai.com
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