Soligenix Inc (OTCBB:SNGX), better known for offering products capable of treating rare diseases, announced that it had received $490,000 via the well-known Technology Business Tax Certificate Transfer program run by New Jersey authorities. As per the reports, the amount was received in the form of non-dilutive financing.
What’s This Program Is About?
Under this program, loss-making biotechnology companies can sell their R&D Tax Credits and NOLs (Loss Carryovers) to profitable & unaffiliated corporate taxpayers in New Jersey area. Such loss-making biotech companies cannot only turn their tax credits and losses into cash proceeds but also purchase other facilities and fund more R&D than ever with the help of this program.
Different authorities take care of a number of activities to execute the entire proceeding in a hassle-free manner. While New Jersey Division of Taxation decides the tax benefits, New Jersey Economic Development Authority checks the eligibility of the companies to participate in this program. Lastly, New Jersey Commission on Science and Technology looks after the technology used by the company and how it can be viable in the best possible manner.
Although many states have had talks to initiate programs like this, none other than the state of Jersey could execute this program successfully.
The senior management team of the company is delighted to announce this news and hopes that this funding will help it touch newer heights in the coming months. According to Christopher J. Schaber, Ph.D., CEO & President, Soligenix, there are many innovative ways through which Soligenix tries to raise funding from time to time. However, it wouldn’t have been possible without the support of NJEDA.
It’s the sixth time when the company has received NOL Funding and hopes that it will be able to utilize this funding in an effective manner. Soligenix Inc (OTCBB:SNGX) looks forward to getting continuous support from the state of New Jersey.