Neurotech locks in $3.15 million non-dilutive loan to fund Phase III autism program
Neurotech International (ASX: NTI) has entered into secured Loan Agreements with Rockford RDF Pty Ltd as trustee for the Rockford RDF Unit Trust for a $3.15 million secured loan. The facility provides non-dilutive funding secured against the Company’s anticipated refundable research and development (R&D) tax incentive offsets for FY2026 and FY2027.
Announced on 15 July 2026, the loan proceeds will be used to support the Company’s Phase III Clinical Studies in Autism Spectrum Disorder (ASD), ongoing R&D activities, and general working capital purposes.
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Why non-dilutive funding matters for shareholders
An R&D tax incentive loan is a form of financing advanced against a company’s expected refundable R&D tax offset. The rebate acts as security, and the loan is repaid once that rebate is received from the tax authority.
The “non-dilutive” element is the key point for existing holders. Because the capital is raised without issuing new shares, current shareholders’ proportional ownership is not reduced.
For a clinical-stage biopharmaceutical company, this structure can preserve the share register while funding an expensive Phase III trial. Why does this matter for investors?
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No new shares are issued, so existing holdings are not diluted.
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The loan is secured against future R&D rebates rather than equity.
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Funding is directed toward advancing the Phase III ASD program.
Breaking down the loan terms
The facility carries a set of material terms disclosed in the announcement. The loan is secured by a first-ranking security over the Company’s anticipated FY2026 and FY2027 refundable research and development tax incentive offsets and the proceeds of each.
Repayment is expected to occur in two tranches drawn from those FY2026 and FY2027 refundable R&D tax incentive offsets. A capitalised establishment fee is added to the loan balance at drawdown.
| Term | Detail |
|---|---|
| Lender | Rockford RDF Pty Ltd as trustee for the Rockford RDF Unit Trust |
| Loan amount | $3,150,000 (excluding capitalised establishment fee) |
| Establishment fee | 1.0% ($31,500), capitalised into the loan balance at drawdown |
| Interest rate | 16.0% per annum, calculated daily on the outstanding balance (including capitalised interest) |
| Default interest rate | 20.0% per annum |
| Drawdown | Single drawdown, subject to conditions precedent |
| Minimum term | 120 days from the date of the agreement |
| Maturity date | 31 December 2027, extendable by the Company by 30 days for a fee |
| Security | First-ranking security over anticipated FY2026 and FY2027 refundable R&D tax incentive offsets and the proceeds of each |
The Company describes the arrangement as providing:
The Company
“non-dilutive funding secured against the Company’s anticipated refundable research and development tax incentive offsets for FY2026 and FY2027.”
What the funding advances: the NTI164 Phase III pathway
Neurotech is a clinical-stage biopharmaceutical development company focused predominantly on paediatric neurological disorders. Its NTI164 therapy is a broad-spectrum oral cannabinoid drug therapy.
The company has built a clinical track record across several disorders, according to the announcement:
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Completed a Phase II/III randomised, double-blind, placebo-controlled trial in ASD, reporting clinically meaningful and statistically significant benefits across a number of clinically-validated measures, alongside excellent safety.
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Completed and reported statistically significant and clinically meaningful Phase I/II trials in ASD, PANDAS/PANS, and Rett Syndrome.
Neurotech has received human ethics committee clearance for the Phase III Clinical Study in ASD. This is the study the loan is intended to help fund.
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The investment takeaway
The facility strengthens Neurotech’s funding position to progress its Phase III ASD program without diluting shareholders, with repayment structured around future refundable R&D tax rebates for FY2026 and FY2027. The facility carries a maturity date of 31 December 2027.
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