30
July 2024
Argent BioPharma
Ltd.
(Argent BioPharma or the Company)
June 2024 Quarter Activity
Report and Cash Flow Statement
Argent BioPharma, an innovative
multidisciplinary drug discovery company within the
biopharmaceutical sector, is pleased to provide its Quarterly
Activity Report for the three months ending 30th June
2024.
Key
Company Activities
Listing on the OTCQB Venture Market
During the Quarter, Argent
BioPharma's ordinary shares were approved to trade on the OTCQB
Venture Market (OTCQB) in
the United States, commencing trading at market open on 2 May 2024,
now trading under the ticker RTGLF. The OTCQB is a leading market
for U.S. and international companies in the entrepreneurial and
development stage. As a verified market with efficient access to
U.S. investors, OTCQB helps companies build shareholder value with
a goal of enhancing liquidity and achieving a fair
valuation.
The cross-trading of the Company's
ordinary shares on the OTCQB is intended to provide enhanced
investor benefits, including easier trading access for certain
investors located in the U.S. and greater liquidity due to a
broader geographic pool of potential investors. Through trading on
the OTCQB, the Company will be able to engage with a wide network
of U.S. investors, data distributors and media partners, ensuring
that U.S. investors have access to the same level of information
and disclosure that is available to investors in Australia, but
through U.S. facing platforms and portals. In addition, the OTCQB
cross-trading facility will provide U.S. based investors with the
ability to access Argent BioPharma's ordinary shares in U.S.
dollars during U.S. market hours.
Appointment of Chief Financial Officer
During the Quarter, Mr Igor
Bluvstein was appointed as the Company's Chief Financial Officer.
Mr. Bluvstein has over sixteen (16) years of experience working in
financial leadership positions in the digital health, e-commerce,
biotechnology, petrochemical, and medical cannabis
industries. Mr Bluvstein has extensive experience
in NASDAQ, LSE, AIM listed companies. . He holds a
Bachelor of Arts in accounting and economics from the Open
University in Israel and is a Certified Public Accountant (CPA)
with E&Y.
June 2024 Quarter Sales Update
Argent BioPharma's
revenue for the June quarter was in line with the quarterly average
sales.
Corporate and Commercial News
Appointment of UK Corporate Broker
Shore Capital, a UK based,
independent securities business offering investment banking,
research, sales and trading services to companies on both the Main
Market and AIM were appointed as the Company's UK Corporate Broker.
The appointment marked an additional step in the Company's
comprehensive restructuring process to position Argent BioPharma in
pioneering drug discovery within the biopharmaceutical
sector.
Completion of Placement
During the quarter, the Company
raised US$500,000 (~A$750,000) by way of a placing through the
subscription of 625,000 new ordinary shares of no-par value in the
capital of the Company at a price of US$0.80 (~A$1.20) per share.
The Company also agreed to issue one free attaching warrant
exercisable at US$1.20 (~A$1.80) with an expiry date of 3 July 2027
for every two shares subscribed for under the Placement. The
subscription price of US$0.80 represented approximately a 400%
premium to the 15-day VWAP of A$0.30 prior to the stock being
placed in a Trading Halt on 28 June 2024.
Funding and Cashflow Reporting
At the end of the June, the Company
has A$703k of cash on hand.
Accompanying this Activity Report is
a Cash Flow Report for the Quarter ending 30 June 2024.
In accordance with ASX Listing Rule
4.7C.3 the Company advises that during the June 2024 quarter,
payments to related parties totalled A$140k, which consisted of
fees paid to executive and non-executive directors of the
Company.
As detailed in the accompanying
Appendix 4C (Quarterly Cashflow Report), cashflows during the
quarter included A$14k in cash outflows associated with cost of
sales and inventory production and A$426k for Research and
development costs.
Activities Post Quarter End
Subsequent to the reporting period,
Argent BioPharma has raised an additional US$2,000,000
(Placement) through the
issue of 2,500,000 fully paid ordinary shares at US$0.80 (~A$1.20)
per share (Placement
Shares). The placement participants will also be issued one
(1) free attaching warrant for every two (2) Placement Shares
subscribed for (Warrants).
The Warrants will be exercisable at US$1.20 (~A$1.80) each,
expiring 3 years from the issue date. The Placement Shares and
Warrants are to be issued under the Company's existing Placement
capacity in accordance with ASX listing Rule 7.1 and 7.1A as
followed: LR7.1 - 1,250,000 Warrants, LR7.1A - 2,500,000 Placement
Shares.
The issue price of US$0.80 (~A$1.20)
per Placement share under the Placement represents approximately a
397% premium to the 15-day VWAP of A$0.302 prior to the stock being
placed in a Trading Halt on 12 July 2024. .
Proceeds from the Placements will
support the continuation of the Company's drug development
pipeline, including CannEpil® and CimetrA® in the US and EU
markets.
Roby Zomer, Managing Director and CEO of Argent BioPharma,
commented:
"This quarter has seen strong consolidation on
our Company strategy, the Company continues to advance its clinical
pipeline, making progress against our key goals and cementing our
position to providing accessible medical treatments for unmet
medical needs."
-ENDS-
Authorised for release by the board of directors, for further
information please contact:
|
Argent BioPharma
Roby Zomer
CEO & Managing
Director
+61 8 6555 2950
info@argentbiopharma.com
|
Argent BioPharma
Rowan Harland
Company Secretary
+61 8 6555 2950
info@argentbiopharma.com
|
|
UK
Corporate Broker
Shore Capital
Toby Gibbs / James Thomas / Lucy
Bowden
+44 (0)207 408 4090
|
|
About Argent BioPharma
Argent BioPharma Limited (the
"Company") (ASX: RGT; LSE: RGT; OTCQB: RGTLF) an innovative
multidisciplinary drug development Company within the
biopharmaceutical sector. The Company focuses on
multidisciplinary methods with Nanotechnology, developing
multi-target therapies for comprehensive disease management,
especially concerning the Central nervous system ("CNS") and
Immunology treatments.
Follow us through our social media
channels:
LinkedIn: Argent
BioPharma
Twitter: @ArgentBioPharma
Facebook: Argent
BioPharma
Appendix 4C
Quarterly cash flow report
for entities
subject to Listing Rule
4.7B
|
Name of entity
|
|
Argent BioPharma
Limited
|
|
ABN
|
|
Quarter ended ("current quarter")
|
|
30 116 800 269
|
|
30 June 2024
|
|
Consolidated statement of cash flows
|
Current quarter
$A'000
|
Year to
date
(12 months)
$A'000
|
|
1.
|
Cash flows from operating activities
|
|
|
|
1.1
|
Receipts from customers
|
379
|
1,398
|
|
1.2
|
Payments for
|
|
|
|
|
(a) research
and development
|
(426)
|
(2,541)
|
|
|
(b) product
manufacturing and operating costs
|
|
-
|
|
|
i) cost of sales /
inventory
|
(14)
|
(1,152)
|
|
|
ii) operating costs
|
(274)
|
(1,036)
|
|
|
(c)
advertising and marketing
|
(47)
|
(328)
|
|
|
(d) leased
assets
|
|
|
|
|
(e) staff
costs
|
(504)
|
(2,032)
|
|
|
(f)
administration and corporate costs (including product
registrations)
|
(1,235)
|
(8,718)
|
|
1.3
|
Dividends received (see
note 3)
|
-
|
-
|
|
1.4
|
Interest received
|
-
|
-
|
|
1.5
|
Interest and other costs of finance
paid
|
-
|
(3)
|
|
1.6
|
Income taxes paid
|
-
|
-
|
|
1.7
|
Government grants and tax
incentives
|
-
|
6
|
|
1.8
|
Other (GST/VAT refund)
|
110
|
(94)
|
|
1.9
|
Net
cash from / (used in) operating activities
|
(2,011)
|
(14,500)
|
|
|
|
2.
|
Cash flows from investing activities
|
|
|
|
2.1
|
Payments to acquire:
|
-
|
-
|
|
|
(a)
entities
|
-
|
-
|
|
|
(b)
businesses
|
-
|
-
|
|
|
(c)
property, plant and equipment
|
(5)
|
(140)
|
|
|
(d)
investments
|
-
|
-
|
|
|
(e) intellectual
property
|
-
|
-
|
|
(f) other
non-current assets
|
-
|
-
|
|
2.2
|
Proceeds from disposal
of:
|
-
|
-
|
|
|
(a)
entities
|
|
|
(b)
businesses
|
-
|
-
|
|
|
(c)
property, plant and equipment
|
-
|
-
|
|
|
(d)
investments
|
-
|
-
|
|
|
(e) intellectual
property
|
-
-
|
-
-
|
|
(f) other
non-current assets
|
|
2.3
|
Cash flows from loans to other
entities
|
-
|
-
|
|
2.4
|
Dividends received (see
note 3)
|
-
|
-
|
|
2.5
|
Other (cash acquired through assets
acquisition)
|
-
|
-
|
|
2.6
|
Net
cash from / (used in) investing activities
|
(5)
|
(140)
|
|
|
|
3.
|
Cash flows from financing activities
|
Current
quarter
$A'000
|
Year to
date
(12 months)
$SA'000
|
|
3.1
|
Proceeds from issues of equity
securities (excluding convertible debt securities)
|
751
|
15,701
|
|
3.2
|
Proceeds from issue of convertible
debt securities
|
-
|
-
|
|
3.3
|
Proceeds from exercise of
options
|
-
|
-
|
|
3.4
|
Transaction costs related to issues
of equity securities or convertible debt securities
|
(29)
|
(597)
|
|
3.5
|
Proceeds from borrowings
|
-
|
-
|
|
3.6
|
Repayment of borrowings
|
-
|
-
|
|
3.7
|
Transaction costs related to loans
and borrowings
|
-
|
-
|
|
3.8
|
Dividends paid
|
-
|
-
|
|
3.9
|
Other (loan entity which where
control was gained after quarter-end)
|
-
|
-
|
|
3.10
|
Net
cash from / (used in) financing activities
|
722
|
15,104
|
|
|
|
|
| |
|
|
|
4.
|
Net
increase / (decrease) in cash and cash equivalents for the
period
|
Current quarter
$A'000
|
Year to
date
(12 months)
$A'000
|
|
4.1
|
Cash and cash equivalents at
beginning of period
|
1,999
|
240
|
|
4.2
|
Net cash from / (used in) operating
activities (item 1.9 above)
|
(2,011)
|
(14,500)
|
|
4.3
|
Net cash from / (used in) investing
activities (item 2.6 above)
|
(5)
|
(140)
|
|
4.4
|
Net cash from / (used in) financing
activities (item 3.10 above)
|
722
|
15,104
|
|
4.5
|
Effect of movement in exchange rates
on cash held
|
(2)
|
(1)
|
|
4.6
|
Cash and cash equivalents at end of quarter
|
703
|
703
|
|
5.
|
Reconciliation of cash and cash
equivalents
at the end of the quarter (as shown in the
consolidated statement of cash flows) to the related items in the
accounts
|
Current quarter
$A'000
|
Previous quarter
$A'000
|
|
5.1
|
Bank balances
|
676
|
1,972
|
|
5.2
|
Call deposits
|
27
|
27
|
|
5.3
|
Bank overdrafts
|
-
|
-
|
|
5.4
|
Other (provide details)
|
-
|
-
|
|
5.5
|
Cash and cash equivalents at end of quarter (should equal
item 4.6 above)
|
703
|
1,999
|
|
6.
|
Payments to related parties of the entity and their
associates
|
Current quarter
$A'000
|
|
6.1
|
Aggregate amount of payments to
related parties and their associates included in item 1
|
140
|
|
6.2
|
Aggregate amount of payments to
related parties and their associates included in item 2
|
-
|
|
|
Note: if any amounts are shown in
items 6.1 or 6.2, your quarterly activity report must include a
description of, and an explanation for, such payments.
|
The
payments in 6.1 are payments to directors of the company for their
service during the quarter .
|
7.
|
Financing facilities available
Note: the term "facility'
includes all forms of financing arrangements available to the
entity.
Add notes as necessary for an understanding of the sources of
finance available to the entity.
|
Total facility amount at
quarter end
$A'000
|
Amount drawn at quarter
end
$A'000
|
|
7.1
|
Loan facilities
|
-
|
-
|
|
7.2
|
Credit standby
arrangements
|
-
|
-
|
|
7.3
|
Other (please specify)
|
14,600
|
6,948
|
|
7.4
|
Total financing facilities
|
14,600
|
6,948
|
|
7.5
|
Unused financing facilities available at
quarter
end
|
-
|
7,652
|
|
7.6
|
Include in the box below a
description of each facility above, including the lender, interest
rate, maturity date and whether it is secured or unsecured. If any
additional financing facilities have been entered into or are
proposed to be entered into after quarter end, include a note
providing details of those facilities as well.
|
|
$14.6M Convertible note facility
with Mercer Street Opportunity Fund LLC. Refer to ASX announcement
on 29 July 2022 for further information.
|
|
8.
|
Estimated cash available for future operating
activities
|
$A'000
|
|
8.1
|
Net cash from / (used in) operating
activities (Item 1.9)
|
(2,011)
|
|
8.2
|
Cash and cash equivalents at quarter
end (Item 4.6)
|
703
|
|
8.3
|
Unused finance facilities available
at quarter end (Item 7.5)
|
7,652
|
|
8.4
|
Total available funding
(Item 8.2 + Item 8.3)
|
8,355
|
|
8.5
|
Estimated quarters of funding available (Item 8.4 divided
by Item 8.1)
|
4.2
|
|
|
Note: if the entity has reported positive net operating cash
flows in item 1.9, answer item 8.5 as "N/A". Otherwise, a
figure for the estimated quarters of funding available must be
included in item 8.5.
|
|
8.6
|
If Item 8.5 is less than
2 quarters, please provide answers to the following
questions:
|
|
|
1.
Does the entity expect that it will continue to have the current
level of net operating cash flows for the time being and, if not,
why not?
|
|
|
Answer: N/A
|
|
|
2.
Has the entity taken any steps, or does it propose to take any
steps, to raise further cash to fund its operations and, if so,
what are those steps and how likely does it believe that they will
be successful?
|
|
|
Answer: N/A
|
|
|
3.
Does the entity expect to be able to continue its operations and to
meet its business objectives and, if so, on what basis?
|
|
|
Answer: N/A
|
|
|
Note: where item 8.5 is less than 2 quarters, all of
questions 8.6.1, 8.6.2 and 8.6.3 above must be
answered.
|
Compliance statement
1 This
statement has been prepared in accordance with accounting standards
and policies which comply with Listing Rule 19.11A.
2 This
statement gives a true and fair view of the matters
disclosed.
30 July 2024
Date:
...................................................................................
[lodge electronically without
signature]
Authorised by:
...................................................................................
Roby Zomer - Managing Director
Notes
1. This
quarterly cash flow report and the accompanying activity report
provide a basis for informing the market about the entity's
activities for the past quarter, how they have been financed and
the effect this has had on its cash position. An entity that wishes
to disclose additional information over and above the minimum
required under the Listing Rules is encouraged to do so.
2. If this
quarterly cash flow report has been prepared in accordance with
Australian Accounting Standards, the definitions in, and provisions
of, AASB 107: Statement of Cash
Flows apply to this report. If this quarterly cash flow
report has been prepared in accordance with other accounting
standards agreed by ASX pursuant to Listing Rule 19.11A, the
corresponding equivalent standard applies to this
report.
3. Dividends
received may be classified either as cash flows from operating
activities or cash flows from investing activities, depending on
the accounting policy of the entity.
4. If this
report has been authorised for release to the market by your board
of directors, you can insert here: "By the board". If it has been
authorised for release to the market by a committee of your board
of directors, you can insert here: "By the [name of board committee - eg Audit and Risk Committee]". If it
has been authorised for release to the market by a disclosure
committee, you can insert here: "By the Disclosure
Committee".
5. If this
report has been authorised for release to the market by your board
of directors and you wish to hold yourself out as complying with
recommendation 4.2 of the ASX Corporate Governance Council's
Corporate Governance Principles
and Recommendations, the board should have received a
declaration from its CEO and CFO that, in their opinion, the
financial records of the entity have been properly maintained, that
this report complies with the appropriate accounting standards and
gives a true and fair view of the cash flows of the entity, and
that their opinion has been formed on the basis of a sound system
of risk management and internal control which is operating
effectively.
