Daily Update: Incannex Receives A$6M R&D Incentive; Chubu Electric Invests ₹1,350 Crore in Continuum Green

INCANNEX RECEIVES A$6.0 MILLION R&D TAX INCENTIVE, EXPECTS TO GET ADDITIONAL A$5.1 MILLION

Incannex Healthcare, Australia-based clinical-stage biopharmaceutical company advancing innovative combination therapies and psychedelic-assisted treatments, Thursday said it has received A$6 million from the Australian Government’s Research and Development Tax Incentive Program.

The Company also expects to receive an additional approximately A$5.1 million in future R&D Tax Incentive proceeds to be received in 2026. 

Incannex is working on developing combination medicines that target the underlying biological pathways associated with chronic conditions, including obstructive sleep apnea, rheumatoid arthritis and generalized anxiety disorder.

Combined, these proceeds represent more than A$11.1 million in non-dilutive capital that further strengthens the Company’s balance sheet and enhances financial flexibility as Incannex advances its clinical development programs and executes on shareholder-focused capital allocation initiatives.

The Australian Government’s Research and Development Tax Incentive Program is designed to encourage innovation and scientific advancement by providing eligible companies with a cash refund for qualifying research and development activities conducted in Australia.

Importantly, the proceeds are non-dilutive in nature, allowing Incannex to recover a significant portion of eligible research and development expenditure without issuing additional shares or taking on debt.

Joel Latham, President and Chief Executive Officer of Incannex Healthcare, commented: “The receipt of more than A$6 million in non-dilutive capital is another important milestone for Incannex and further strengthens what we believe is one of the strongest balance sheets among clinical-stage biotechnology companies of our size. Importantly, these proceeds are being received without issuing a single additional share. At a time when many biotechnology companies are reliant on dilutive financings to fund development activities, Incannex continues to strengthen its balance sheet through disciplined capital management and strategic utilization of government innovation incentives.”

“Combined with our existing cash position and debt-free balance sheet, these proceeds provide additional flexibility as we continue advancing our key clinical programs, including the recently commenced DReAMzz study for IHL-42X, while also supporting shareholder-focused capital allocation initiatives such as our active share repurchase program. We believe the market continues to significantly undervalue the strength of our balance sheet, the progress across our clinical programs and the multiple value creation opportunities ahead of us. The receipt of this additional non-dilutive capital further reinforces our ability to execute on our strategy while maintaining a strong financial foundation.”

JAPAN-BASED CHUBU ELECTRIC INVESTS RS 1,350 CRORE IN INDIA’S CONTINUUM GREEN ENERGY

Continuum Green Energy, India, one of India’s independent renewable energy producers, Thursday said they have raised Rs 1350 crore from  Chubu Electric Power, a major Japanese electric utility. 

The company said this will be through a combination of primary subscription and secondary acquisition of equity shares of Continuum. 

CHUBU joins Just Climate, the specialist climate investment business established by Generation Investment Management, as a key institutional shareholder in Continuum. 

The proceeds from the primary component of CHUBU’s investment will be used to fund Continuum’s ongoing capacity expansion programme, strengthen the Company’s balance sheet, and support the development of new wind, solar, hybrid and BESS projects across India.

Arvind Bansal, Co-Founder and Chief Executive Officer, Continuum Green Energy Limited, said: “The signing of definitive agreements with Chubu Electric Power marks a defining moment for Continuum. We have built a platform that can deliver large-scale renewable energy.”

Hiroki Sato, Division CEO, Global Business, Chubu Electric Power Co., Inc., said: “India is one of the world’s most important markets for the energy transition. We are excited to join with Continuum and hope to contribute to further decarbonization of India’s growing energy market, while supporting Continuum’s next phase of growth by expanding capacity and deepening its presence in the C&I sector. Beyond our financial investment, we see meaningful opportunities to connect Continuum with the growing community of Japanese manufacturers and corporations operating in India, helping them fulfil their renewable energy procurement needs through a partner they can trust.”