Argent BioPharma Secures $4.5 Million to Advance Drug Pipeline

Argent BioPharma's Significant Capital Raise

Argent BioPharma (ASX:RGT) (OTCQB:RGTLF), a specialist clinical-stage biopharmaceutical firm, has successfully raised US$4,500,000 before costs through a well-structured capital placement. This funding initiative is a crucial step in addressing unmet medical needs with innovative treatments targeting the central nervous system and immune-related disorders.

Details of the Capital Placement

The recent capital raise was achieved through the subscription of 5,625,000 Units priced at US$0.80 each (approximately A$1.28). Each Unit consists of two fully paid ordinary shares, termed Placement Shares, and one free-attaching warrant, which can be exercised at US$0.55 (approximately A$0.88) within three years from issuance.

Tranche Information

The Placement is set to occur in two distinct tranches. Tranche 1 will see the immediate issuance of 5,000,000 Placement Shares along with 2,500,000 Warrants, following the Company’s existing placement capacity under ASX Listing Rules. Tranche 2 is contingent upon shareholder approval for the issuance of 6,250,000 Placement Shares and 3,125,000 Warrants.

Placement Share Pricing

The shares in the Placement will be available at a remarkable price of US$0.40 (about A$0.64), reflecting an increase of approximately 370% compared to the 15-day Volume Weighted Average Price (VWAP) of A$0.173. This significant pricing underscores the market's positive outlook on Argent BioPharma's future potential.

Use of Proceeds from the Placement

The proceeds from this capital raise are earmarked for advancing Argent BioPharma's drug development pipeline. The company aims to prioritize the development of its promising lead candidate, CannEpil, which is on the trajectory for clinical studies. This initiative represents a landmark opportunity for the company to enhance its portfolio and expedite the delivery of groundbreaking therapies to patients in need.

Strategic Review and Future Directions

Alongside the capital raise, Argent BioPharma is undertaking a thorough review of its operational and administrative functions. This assessment is vital for the long-term sustainability of the company’s operations, especially following its recent delisting from the London Stock Exchange and plans for a US National Listing.

Corporate Advisory Role

Sputnik Enterprises Ltd has acted as the corporate advisor for this capital raising effort. As part of their engagement, they will receive a cash fee amounting to 5% of the proceeds from the Placement, along with the entitlement to 1,125,000 Warrants, which is also subject to shareholder approval.

Contact Information

For additional information, interested parties can reach out to:

Roby Zomer
CEO & Managing Director
+61 8 6555 2950

Rowan Harland
Company Secretary
+61 8 6555 2950

About Argent BioPharma

Argent BioPharma Limited (ASX: RGT; OTCQB: RGTLF) is at the forefront of developing innovative solutions for medical issues in neuroimmunology. This clinical-stage biopharmaceutical company excels in creating advanced nano-medicines aimed at unmet medical needs in central nervous system disorders and immune-related conditions. Highlighted by its progressive research pipeline, Argent BioPharma's lead candidates—CannEpil, CogniCann, and CimetrA—demonstrate the company's commitment to enhancing patient care through science-driven innovation.

Frequently Asked Questions

What is the purpose of the capital raise?

The capital raise aims to support the advancement of Argent BioPharma's drug development pipeline, particularly focusing on CannEpil.

How much funding did Argent BioPharma raise?

Argent BioPharma raised US$4,500,000 through the placement of shares and warrants.

What are the terms of the Placement Shares?

The Placement Shares are priced at US$0.40 per share, representing a significant premium based on recent trading prices.

Who acted as the corporate advisor?

Sputnik Enterprises Ltd served as the corporate advisor for the capital raising initiative.

What is Argent BioPharma's focus area?

Argent BioPharma focuses on developing treatments for central nervous system and immune-related disorders using advanced technologies.

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