RespireRx Pharmaceuticals ( OTCPK:RSPI ) said it set up a wholly-owned, unlisted public company in Australia called ResolutionRx.
The company will contribute certain dronabinol assets and certain liabilities to ResolutionRx.
RespireRx added that one of the reasons for creating ResolutionRx was to allow it to participate in the Australian research and development tax credit which in the case of ResolutionRx, is a refund of 43.5% of qualified research and development expenditures as reported on ResolutionRx's Australian tax return.
The company noted that ResolutionRx is in discussions with an Australia based fund to establish a finance facility secured by the tax credits.
In addition, ResolutionRx is in negotiations for an equity or equity-linked financing of up to 25% of the research and development (R&D) budget to be used exclusively to support the R&D budget.
"We believe that creating ResolutionRx has made it possible to access finance channels separate from and possibly in addition to those of the Company, in order to unlock the unrealized asset values of our pharmaceutical cannabinoid program," said Jeff Margolis, CFO of RespireRx and director at ResolutionRx.
RespireRx said that, in support of ResolutionRx, it had entered a letter of intent and is preparing a final agreement with an Australia-based specialty contract research organization (CRO) exclusively focused on cannabinoid and psychedelic clinical research.
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RespireRx sets up new Australian company to develop cannabinoid platform