Argent BioPharma Ltd (LSE:MXC, OTC:RGTLF, ASX:RGT) has received firm commitments to raise US$500,000 to continue its drug development pipeline, including CannEpil® and CimetrA®.
This placement will see Argent issue 625,000 fully paid ordinary shares at US$0.80 (~A$1.20) per share. The issue price represents a premium of around 400% premium to the 15-day VWAP of A$0.30 prior to the stock being placed in a trading halt on June 28, 2024.
The placement participant is a professional and sophisticated investor — an unrelated party to the company — who will also be issued one free attaching warrant for every two placement shares subscribed for. These warrants will be exercisable at US$1.20 (~A$1.80) each, expiring three years from the issue date.
Proceeds from the placement will be used to continue the company’s drug development pipeline, including CannEpil® and CimetrA®.
Newest investor
Argent BioPharma CEO and managing director Roby Zomer said: “We are delighted by the strong support from our newest investor, as reflected in the substantial premium to the current trading price.
“This raise will allow the company to continue the development of our key drug candidates, CannEpil® and CimetrA®.
"Our new investor's confidence underscores our pipeline's potential and our commitment to advancing innovative treatments for unmet medical needs, in the biopharmaceutical space.”
Innovative drug development
In addition to news of the placement, Argent BioPharma today released a company presentation.
The presentation outlines how the company is leveraging nanotechnology and multidisciplinary drug development strategies to create multi-target therapies, focusing on central nervous system (CNS) disorders and immune modulation.
It provides an overview of the company’s key products, including CannEpil® and CimetrA®, and the market opportunity, along with its research and development product pipeline.
To view the presentation, click here.
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