InhaleRx CEO Darryl Davies has agreed to receive shares in the company in lieu of accrued salary otherwise payable to him.
The firm told the ASX the decision was in keeping with its cost-optimisation strategy and prioritisation of available capital towards the advancement of clinical trials of its cannabinoid drug candidates IRX211 and IRX616a.
IRX211 is intended as a treatment for breakthrough cancer pain while IRX616a is aimed at patients with panic disorder. Expenditure on these programs was A$186,000 in the half year ended June 30, 2024.
Davies’ total accrued salary from February 1 to September 30, 2024 was $99,900 with the board instead issuing a total of 3,444,828 fully paid ordinary shares to him effective today (October 2) based on a valuation of $0.029.
InhaleRx said: “While no funds were raised pursuant to the issue of these shares, [it] has discharged the $99,900 of salary otherwise payable to Mr Davies.
“To further prioritise available capital, the board members have similarly agreed to accept 50% of their accrued director fees by issuance of shares, subject to shareholder approval at the company’s next general meeting.”