Invion Secures Trial Funding Covering Up to 85% of Costs

Two Facilities Target Most of Invion’s Trial Costs

Invion Limited (ASX:IVX) has put financing around a large part of its clinical pipeline, securing agreements that are expected to cover up to approximately 85% of current and future trial costs. The arrangements combine up to A$25 million from Point8 Capital with a further A$7.5 million facility from Rockford Capital across FY27 and FY28.

Point8 will fund 50% of clinical trial invoices as they fall due, contributing half of each clinical milestone payment under a multi-year co-funding deed. Rockford’s facility is designed to finance Invion’s share of eligible clinical research organisation invoices ahead of refundable R&D Tax Incentive payments, with advances based on 34.8% of eligible R&D expenditure.

Point8 Funding Carries Potential 10% Dilution

The Point8 commitment is not free capital. In exchange, Invion proposes to grant Point8, or its nominee, 11,055,313 unlisted options equal to 10% of the company’s issued capital on a non-diluted basis. Shareholder approval under ASX Listing Rule 7.1 is required before the options can be granted.

The options have an exercise price of $0.03639 and a five-year term from the date of shareholder approval. They vest progressively as Point8 funds are drawn, but only if a clinical trial candidate reaches Phase 3 and funding has been provided under the facility. That makes the potential dilution conditional rather than immediate, although a successful move into Phase 3 would be the event that activates the vesting test.

The funding is intended to support Invion’s planned move of its non-melanoma skin cancer program into Phase II, following the company’s ??

Rockford Debt Adds Cost and Security

Rockford’s financing is debt backed by Invion’s refundable R&D tax incentive receivables. It carries interest of 16% a year, a 1.50% fee on each drawdown and a $50,000 arrangement fee, which Invion has agreed to settle through the proposed issue of 1,374,003 shares at $0.03639, also subject to shareholder approval.

Each tranche matures when the relevant R&D tax offset is received or 12 months after the end of the applicable income year, with a final maturity date of 30 April 2029. Rockford will hold a first-ranking security interest over the refundable tax receivables and a security interest over Invion’s assets on customary terms. Further advances also depend on conditions including evidence that earlier funds were passed on to clinical research organisations.

Funding Arrives as Invion Expands Its Oncology Pipeline

The agreements arrive as Invion prepares to advance its non-melanoma skin cancer trial to Phase II and plans to begin an anogenital cancer trial with Peter MacCallum Cancer Centre in the coming year. The skin program had previously been expanded to include basal cell carcinoma patients after the company reported encouraging safety and efficacy signals in squamous cell carcinoma cohorts in its basal cell carcinoma trial expansion(46ee02a4-4662-44a5-815a-324d6dcc4c16).

Invion also said the US Food and Drug Administration has granted orphan drug designation to its lead candidate, INV043, for anal cancer. The practical test now is less about headline funding capacity than conversion into funded invoices, trial execution and eventual R&D tax refunds. The company’s announcement expressly cautions that funding could be withdrawn under the agreements and that receipt of advances is not assured.