Rewardle (ASX:RXH) Secures $290,000 R&D Funding Facility – The Market Herald
- Rewardle (RXH) Secures $290,000 Research & Development Funding Facility to Drive Growth
- Rewardle participates in the Australian Government’s R&D tax incentive scheme, but refunds are usually received between three and nine months after the exercise
- The financing facility set up with the lender Radium will mature either on November 30 or upon receipt of the FY22 R&D discount
- The company says this allows it to maximize its cost-to-equity conversion opportunities, while having enough working capital to support new growth
- Shares trade in gray at 1.1 cent at 3:43 p.m. AEST
Rewardle (RXH) secured a $290,000 research and development funding facility to drive growth.
The software company has developed a “business-to-business-to-consumer” software platform called the Rewardle Platform.
The marketing and payments platform allows members to connect with local businesses across Australia on a single cloud platform powered by big data analytics.
The company has a long-term strategy to leverage its operational capabilities, expertise and intellectual property to develop new opportunities and access new markets.
To achieve this, RXH has set up a financing facility for its research and development activities in fiscal 2022 with lender Radium Capital.
Rewardle participates in the Australian Government’s R&D tax incentive scheme, but refunds are usually received between three and nine months after the exercise.
The facility with Radium essentially bridges the gap between the company’s investment in research and development activities and when it receives reimbursement from the government.
The loan amount is $289,035 and will mature either on November 30 or upon receipt of the FY22 R&D discount.
Rewardle Founder and Executive Chairman Ruwan Weerasooriy said the funding allows the company to “continue to aggressively maximize” its fees on equity conversion opportunities, while still having sufficient working capital. to support new growth.
“As we find ourselves emerging from the COVID-19 pandemic to face macroeconomic headwinds, we are confident that our multidimensional growth strategy and agile operating structure can be adapted as needed so that the business can operate and grow without requiring additional capital,” says Weerasooriya.
Shares were trading in the gray at 1.1 cents apiece as of 3:43 p.m. AEST.