Kinarus has announced that it has entered into a CHF1.5m strategic convertible loan agreement with ChaoDian (Hangzhou) Investment Management, an investment company based in China. The CHF1.5m subordinated loan has a three-year fixed term and does not bear any interest, and is convertible to Kinarus shares at a fixed conversion price of CHF0.01 per share. In addition to supporting Kinarus’s financial position, the company indicates the loan agreement forms the basis for future discussions on the development and commercialisation of KIN001 for the treatment of idiopathic pulmonary fibrosis (IPF) in China. While discussions are preliminary and no deal or licensing arrangement can be assured at this stage, we are encouraged that KIN001 is attracting interest from potential partners and view this development as supportive of the underlying premise behind the potential anti-fibrotic and anti-inflammatory effects of KIN001.