REG - Argent Biopharma Ltd - March 2024 Quarter Activity Report
30/04/2024 09:00
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RNS Number : 5794M Argent Biopharma Limited 30 April 2024
30 April 2024
Argent BioPharma Ltd
March 2024 Quarter Activity Report and Cash Flow Statement
Key Highlights:
· Following approval from shareholders at a general meeting, the Company
officially changed its name to Argent BioPharma Ltd
· Dr. Shlomo Sadoun joined Argent BioPharma's advisory board with over 18 years
of experience in the pharmaceutical sector
· Argent BioPharma's revenue for the March quarter was in line with the
quarterly average sales
Argent BioPharma Ltd (Argent BioPharma, RGT or the Company), an innovative and
multidisciplinary drug discovery company within the biopharmaceutical sector,
is pleased to provide its Quarterly Activity Report for the three months
ending 31(st) March 2024.
Roby Zomer, Managing Director and CEO of Argent BioPharma, commented: "We are
pleased to share positive developments from the business during the March
quarter. RGT successfully concluded its comprehensive restructuring process,
following approval from shareholders the Company officially changed its name
to Argent BioPharma Ltd. Additionally, we are delighted to welcome Dr. Shlomo
Sadoun to Argent BioPharma's advisory board with his wealth of experience and
expertise in the pharmaceutical sector."
Key Company Activities
Change of Name
Following approval from shareholders at a general meeting held 18 March 2024,
the Company officially changed its name to Argent BioPharma Ltd on 3 April
2024 (effective date of change on the LSE was 10 April 2024). Additionally,
the Company's ASX and LSE code migrated to RGT. This signalled the conclusion
of a comprehensive restructuring process where Argent BioPharma is now set to
position itself as a significant player in pioneering drug discovery within
the biopharmaceutical sector.
Refinancing of Convertible Securities Agreement
During the quarter the Company executed a Deed of Variation with Mercer Street
Global Opportunity Fund, LLC (Mercer) in respect of the convertible securities
agreement entered into between the Company and Mercer in 2020. This includes
the refinancing of 500,000 convertible notes from the 2020 convertible note
facility (Notes) which totals $2,100,000. A commercial agreement has been
reached by which the minimum conversion price of the Notes has been reduced
from not less than $10.00 to not less than $0.35.
The Company intends to reach additional agreements with Mercer to amend the
terms of the remaining 2020 convertible note facility and the 2022 convertible
note facility.
March Quarter Sales Update
Argent BioPharma's revenue for the March quarter was in line with the
quarterly average sales.
Activities Post Quarter End
Appointment of Dr. Shlomo Sadoun to Advisory Board
Dr. Shlomo Sadou joined Argent BioPharma's advisory board. Dr. Shlomo Sadoun
has over 18 years of experience in the pharmaceutical sector. Dr. Sadoun
co-founded and leads SK-Pharma Group, a global pharmaceutical company
operating in 18 countries. SK-Pharma specialises in producing and marketing
generic, specialty pharma, hybrid generics, and biosimilar pharmaceutical
products. Additionally, Dr. Sadoun serves as the CEO of Arphio, an orphan drug
company utilising proprietary technology to promote, market, and sell orphan
drugs worldwide.
Corporate and Commercial News
Funding and Cashflow Reporting
At the end of the March, the Company has c.A$1.999 million of cash on hand.
Accompanying this Activity Report is a Cash Flow Report for the Quarter ending
31 March 2024.
In accordance with ASX Listing Rule 4.7C.3 the Company advises that during the
March 2024 quarter, payments to related parties totalled A$84k, 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$422k in cash outflows associated
withcost of sales and inventory production and A$525k for Research and
development costs.
Results of General Meeting
On 18 March 2024 the Company held a General Meeting of shareholders. The
Company announced that all motions put to the meeting were voted by poll, with
all resolutions carried.
-ENDS-
Authorised for release by the board of directors, for further information
please contact:
Argent BioPharma Limited Argent BioPharma Limited
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.com (mailto:info@argentbiopharma.com)
UK IR/PR Advisers UK Brokers
IFC Advisory Oberon Capital
Graham Herring / Tim Metcalfe / Zach Cohen Aimee McCusker / Adam Pollock
+44 203 934 6630 +44 203 179 5300
argentbiopharma@investor-focus.co.uk aimeemccusker@oberoninvestments.com
(mailto:argentbiopharma@investor-focus.co.uk) (mailto:aimeemccusker@oberoninvestments.com) adampollock@oberoninvestments.com
(mailto:adampollock@oberoninvestments.com)
About Argent BioPharma
Argent BioPharma purpose is to address unmet medical needs through the
pioneering integration of Nanotechnology and Multidisciplinary research
methods. Our approach heralds a transformative shift in healthcare, combining
the power of multi-targeted drug therapies with precision nanoscale delivery
to enhance treatment efficacy while reducing side effects. Central to our
ethos is making these innovative treatments accessible, ensuring they reach
those underserved by current medical solutions. As we endeavor to become
globally recognized in the life science industry, we are committed to bridging
healthcare gaps, redefining industry standards, and providing impactful
solutions and hope to communities worldwide.
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 31 March 2024
Consolidated statement of cash flows Current quarter $A'000 Year to date (9 months)
$A'000
1. Cash flows from operating activities
1.1 Receipts from customers 116 1,020
1.2 Payments for
(a) research and development (525) (1,355)
(b) product manufacturing and operating costs -
i) cost of sales / inventory (422) (945)
ii) operating costs (56) (149)
(c) advertising and marketing (1,029) (1,843)
(d) leased assets (17) (72)
(e) staff costs (1,107) (3,908)
(f) administration and corporate costs (including product (1,382) (5,165)
registrations)
1.3 Dividends received (see note 3) - -
1.4 Interest received - -
1.5 Interest and other costs of finance paid (1) (24)
1.6 Income taxes paid - -
1.7 Government grants and tax incentives 2 6
1.8 Other (GST/VAT refund) - -
1.9 Net cash from / (used in) operating activities (4,421) (12,436)
2. Cash flows from investing activities
2.1 Payments to acquire: - -
(a) entities - -
(b) businesses - -
(c) property, plant and equipment (127) (144)
(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 (127) (144)
3. Cash flows from financing activities
3.1 Proceeds from issues of equity securities (excluding convertible debt 75 14,950
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 (11) (606)
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 64 14,344
4. Net increase / (decrease) in cash and cash equivalents for the period Current quarter Year to date (9 months)
$A'000
$A'000
4.1 Cash and cash equivalents at beginning of period 6,482 240
4.2 Net cash from / (used in) operating activities (item 1.9 above) (4,421) (12,436)
4.3 Net cash from / (used in) investing activities (item 2.6 above) (127) (144)
4.4 Net cash from / (used in) financing activities (item 3.10 above) 64 14,344
4.5 Effect of movement in exchange rates on cash held 1 (5)
4.6 Cash and cash equivalents at end of quarter 1,999 1,999
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 1,972 6,457
5.2 Call deposits 27 26
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) 1,999 6,482
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 84
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) (4,421)
8.2 Cash and cash equivalents at quarter end (Item 4.6) 1,999
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) 9,651
8.5 Estimated quarters of funding available (Item 8.4 divided by Item 8.1) 2.2
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 April 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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