IMUNON Receives $1.3 Million from Sale of its New Jersey Net Operating Losses
- IMUNON, Inc. receives $1.3 million in net cash proceeds from the sale of $1.4 million of unused New Jersey net operating losses.
- The non-dilutive funding enhances the company's balance sheet and extends its current operating runway.
- The Technology Business Tax Certificate Transfer program administered by NJEDA allows IMUNON to finance its clinical development programs through the sale of NOLs.
- IMUNON expresses gratitude to NJEDA for fostering investment and growth opportunities for businesses in New Jersey.
- The program enables qualified companies to sell up to $20 million of their unused New Jersey net operating losses and R&D tax credits to support R&D, workforce expansion, and other allowable expenses.
- None.
The recent announcement by IMUNON, Inc. regarding the acquisition of non-dilutive funding through the sale of New Jersey net operating losses (NOLs) is a strategic financial move. By leveraging the NJEDA's NOL program, IMUNON has effectively converted tax assets into liquid capital without issuing new shares, thus avoiding shareholder dilution. This cash injection can be seen as a positive signal to the market, reflecting the company's ability to utilize innovative financial instruments to support its operations.
From a financial perspective, the use of NOLs is a savvy tool for companies that are not yet profitable. It allows for the preservation of cash, which is particularly valuable for clinical-stage companies like IMUNON that face significant R&D expenditures. The $1.3 million in net cash proceeds extends the company's operating runway, potentially reducing the need for near-term financing that could have placed downward pressure on the stock price.
Investors should note that while this funding strategy is beneficial, it is not a reflection of the company's revenue-generating capabilities. It's essential to monitor IMUNON's progress in its clinical development programs to assess the long-term viability and potential for future profitability.
IMUNON's participation in the NJEDA's Technology Business Tax Certificate Transfer program illustrates a broader trend within the biotechnology sector where companies capitalize on state-sponsored initiatives to support their growth. By selecting this non-dilutive funding route, IMUNON not only bolsters its balance sheet but also demonstrates fiscal prudence—a trait that may increase its attractiveness to potential partners and investors.
For stakeholders, the key takeaway is the company's ability to navigate the competitive process to secure funding. This reflects positively on management's competence and the company's strategic positioning within the biotech landscape of New Jersey. Moreover, the fact that IMUNON has been able to sell a substantial amount of NOLs over the years indicates a consistent approach to managing its financial resources.
While this move does not directly impact the company's market valuation, it can indirectly influence investor sentiment by showcasing financial acumen and resourcefulness. It is also indicative of the company's commitment to maintaining shareholder value, which could have favorable implications for stock stability in the short to mid-term.
Non-dilutive funding strengthens balance sheet and extends current operating runway
LAWRENCEVILLE, N.J., March 25, 2024 (GLOBE NEWSWIRE) -- IMUNON, Inc. (NASDAQ: IMNN), a clinical-stage drug-development company focused on developing DNA-mediated immuno-oncology therapies and next-generation vaccines, announces receipt of
“This program offered by the NJEDA provides IMUNON with investor-friendly ways to finance its clinical development programs,” said Jeffrey W. Church, IMUNON’s executive vice president and CFO. “The sale of more than
The Technology Business Tax Certificate Transfer administered by the NJEDA enables qualified companies to sell up to
For more details on this NOL program, please visit www.njeda.com.
About IMUNON
IMUNON is a clinical-stage biotechnology company focused on advancing a portfolio of innovative treatments that harness the body’s natural mechanisms to generate safe, effective and durable responses across a broad array of human diseases, constituting a differentiating approach from conventional therapies. IMUNON is developing its non-viral DNA technology across its modalities. The first modality, TheraPlas®, is developed for the coding of proteins and cytokines in the treatment of solid tumors where an immunological approach is deemed promising. The second modality, PlaCCine®, is developed for the coding of viral antigens that can elicit a strong immunological response. This technology may represent a promising platform for the development of vaccines in infectious diseases.
The Company’s lead clinical program, IMNN-001, is a DNA-based immunotherapy for the localized treatment of advanced ovarian cancer currently in Phase 2 development. IMNN-001 works by instructing the body to produce safe and durable levels of powerful cancer-fighting molecules, such as interleukin-12 and interferon gamma, at the tumor site. Additionally, the Company is entering a first-in-human study of its COVID-19 booster vaccine (IMNN-101). We will continue to leverage these modalities and to advance the technological frontier of plasmid DNA to better serve patients with difficult-to-treat conditions. For more information on IMUNON, visit www.imunon.com.
Forward-Looking Statements
IMUNON wishes to inform readers that forward-looking statements in this news release are made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned that such forward-looking statements involve risks and uncertainties including, without limitation, unforeseen changes in the course of research and development activities and in clinical trials; the uncertainties of and difficulties in analyzing interim clinical data; the significant expense, time and risk of failure of conducting clinical trials; the need for IMUNON 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 IMUNON’s filings with the Securities and Exchange Commission. IMUNON assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise.
Contacts:
| IMUNON | LHA Investor Relations |
| Jeffrey W. Church | Kim Sutton Golodetz |
| Executive Vice President, CFO | 212-838-3777 |
| and Corporate Secretary | Kgolodetz@lhai.com |
| 609-482-2455 | |
| jchurch@imunon.com |
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FAQ
How much funding did IMUNON receive through the sale of unused New Jersey net operating losses?
What is the purpose of the non-dilutive funding received by IMUNON?
What program administered by NJEDA enabled IMUNON to sell its unused New Jersey net operating losses?
How much can qualified companies sell of their unused New Jersey net operating losses through the program?
What are the benefits of the Technology Business Tax Certificate Transfer program for companies like IMUNON?
