InhaleRx CEO Darryl Davies has agreed to take shares in the company as settlement for accrued salary that would otherwise have been paid to him in cash.
The company informed the ASX that the arrangement aligns with its cost-optimisation strategy and its focus on directing available capital toward the advancement of clinical trials for its cannabinoid drug candidates IRX211 and IRX616a.
IRX211 is being developed as a treatment for breakthrough cancer pain, while IRX616a targets patients with panic disorder. Spending on these two programs totalled A$186,000 in the half year ended June 30, 2024.
Davies accumulated total accrued salary of $99,900 between February 1 and September 30, 2024. In lieu of a cash payment, the board issued him 3,444,828 fully paid ordinary shares, effective October 2, at a valuation of $0.029 per share.
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."
