Celsion Gets Approval to Sell New Jersey Net Operating Losses and R&D Tax Credits Over 2011-17

Shares of Celsion (CLSN), an oncology drug development company, jumped more than 4.5% intraday, after the company said Tuesday it got a nod from the New Jersey Economic Development Authority (NJEDA) to sell its unused New Jersey net operating losses (NOL) and research & development (R&D) tax credits for tax years 2011 to 2017.

The company, which anticipates receiving up to $10 million of net cash proceeds prior to the end of 2018, said the exact percentage of losses to be sold will be determined by the NJEDA.

“This non-dilutive funding can be used to support job growth to support our clinical development programs,” CEO Michael Tardugno said. The “sale will provide an operating runway into the third quarter of 2020,” he added.

Celsion said it was the largest applicant with a submission that has been approved, noting $12.5 million in NOL’s for the tax years 2011 to 2017.

The NJEDA’s Technology Business Tax Certificate Transfer Program enables the sale of unused New Jersey net operating losses and R&D tax credits to unaffiliated, profit-generating corporate taxpayers in New Jersey for at least 80% of the value of the tax benefits, up to a maximum lifetime benefit of $15 million per company.