Ann: Trading Halt, page-134

The CR is not a surprise given the large upfront cost of a trial, and it will also save the company from being forced to consider any lowball partnering offers once they're no longer in need for cash to get the trial up and running. From my understanding, this may be the only CR they need for the Phase 2/3 clinical trial if they expected it to cost ~$20m.

In the next 6 months, they will get an R&D tax incentive of 43.5% returned on all Aus-based R&D costs incurred. Up to the 3rd quarter report in April, they had spent ~$3.5m in the financial year to date. Including the final quarter I'd expect the R&D tax incentive for FY24 to be anywhere from $1-2m.

Thanks to the FDA letting them enrol a larger number of patients in Aus than usual for the upcoming trial, the money spent on the clinical trial at Aus-based sites will be included in our FY25 R&D tax calcs too, so that's more money back into the company's pocket during the trial (10-18 months from now, they can apply to have it paid to them earlier than the EOFY if they choose).

The FDA's orphan drug designation also includes tax credits, grants, waiver of administration fees for clinical trials, etc. which would reduce costs on the US-based side of the trial. Then there's any grants from interested third parties that others have already mentioned, FightMND etc.

From my own rough estimations, my guess is they'd be raising this $10m with the expectation that with all the other small cash injections in the next 12 months, they could make it to the interim 12-month readout without another raise which with results that potentially replicate the phase 1 trial, will be all they need.