REG - Argent Biopharma Ltd - June 2024 Quarter Activity Report and Cash Flow
30/07/2024 08:00
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RNS Number : 3614Y Argent Biopharma Limited 30 July 2024
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 30(th) 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 Argent BioPharma
Roby Zomer Rowan Harland
CEO & Managing Director Company Secretary
+61 8 6555 2950 +61 8 6555 2950
info@argentbiopharma.com (mailto:info@argentbiopharma.com) info@argentbiopharma.co (mailto:info@argentbiopharma.co.uk) m
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 (1,235) (8,718)
registrations)
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 Year to date
$A'000 (12 months)
$SA'000
3.1 Proceeds from issues of equity securities (excluding convertible debt 751 15,701
securities)
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 (29) (597)
securities
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 Year to date (12 months)
$A'000
$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 Current quarter Previous quarter
at the end of the quarter (as shown in the consolidated statement of cash
$A'000
$A'000
flows) to the related items in the accounts
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 140
in item 1
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 Total facility amount at quarter end Amount drawn at quarter end
Note: the term "facility' includes all forms of financing arrangements
$A'000
$A'000
available to the entity.
Add notes as necessary for an understanding of the sources of finance
available to the entity.
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 - 7,652
end
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.
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