#Australia #Argent BioPharma #Nano-medicine #CannEpil #Perth

Argent BioPharma's Successful Capital Raise: A Step Toward Innovation

Argent BioPharma Ltd., a clinical-stage biopharmaceutical company based in Perth, Australia, has recently made waves in the healthcare sector by completing a significant capital raise. The company, listed on both the Australian Securities Exchange (ASX) as RGT and the OTCQB market as RGTLF, has successfully secured funding amounting to US$4.5 million (approximately A$7.3 million) through a placement. This initiative aims to further its mission of addressing unmet medical needs, particularly in the realms of central nervous system (CNS) disorders and immune-related conditions.

Details of the Placement

The capital raise was facilitated through the subscription of 5,625,000 units, with each unit priced at US$0.80 (or ~A$1.28). A notable feature of this offering is that each unit consists of two fully paid ordinary shares and one free-attaching warrant. The warrants can be exercised at US$0.55 (approximately A$0.88) within three years of issuance. The placement is set to occur in two tranches: the first tranche will issue 5,000,000 shares and 2,500,000 warrants immediately, leveraging the existing placement capacity authorized under ASX Listing Rules 7.1 and 7.1A. The second tranche will include 6,250,000 shares and 3,125,000 warrants, pending shareholder approval at the next general meeting.

The pricing strategy is particularly interesting, with placement shares priced at US$0.40 (about A$0.64), representing a remarkable 370% increase compared to the 15-day volume-weighted average price of A$0.173, and a 377% increase from the last closing price of A$0.17 before a trading halt on January 3, 2025.

Advancing Drug Development

The primary purpose of this funding is to bolster Argent BioPharma's drug development pipeline, with a specific emphasis on advancing CannEpil®, a candidate drug targeted at CNS disorders. The company aims to initiate pivotal clinical studies to explore the therapeutic potential of this innovative treatment. By leveraging their expertise in neuro-immune modulation and advanced nano-medicine technology, Argent BioPharma is poised to enhance the quality of care available for patients suffering from chronic inflammatory and neurodegenerative diseases.

Strategic Review and Future Plans

In tandem with the capital raise, Argent BioPharma is conducting a thorough strategic review of its operational and administrative functions. This review is part of a larger effort to ensure the long-term sustainability and growth of its operations, particularly following its recent delisting from the London Stock Exchange (LSE). The company is now focused on implementing a strategic work plan aimed at achieving a listing in the United States, which will increase its visibility and accessibility to a broader investment community.

Corporate Collaboration

The placement was supported by Corporate Advisor Sputnik Enterprises Ltd., which not only facilitated the process but will also receive a fee of 5% of the proceeds from the placement, along with 1,125,000 warrants, subject to shareholder approval. This partnership underscores the collaborative efforts necessary to navigate the complex landscape of biopharmaceutical funding.

Looking Ahead

As Argent BioPharma continues its journey towards innovation, the successful capital raise highlights its commitment to not just maintaining but enhancing its role in the biopharmaceutical industry. With an array of advanced candidates like CannEpil®, CogniCann®, and CimetrA®, the company stands at the frontier of a transformative era in treating central nervous system and immune-related disorders. Stakeholders and potential investors alike will be keenly watching how the company utilizes this fund to drive innovation and improve patient outcomes in the near future.

For further information, individuals can connect with Argent BioPharma CEO Roby Zomer or Company Secretary Rowan Harland via their provided contact details.