Argent BioPharma Ltd. Raised US$4,500,000

Rhea-AI Summary

Argent BioPharma (ASX:RGT) (OTCQB:RGTLF) has successfully completed a US$4.5 million capital raise through a placement of 5,625,000 Units at US$0.80 each. Each Unit includes two ordinary shares and one warrant exercisable at US$0.55 with a three-year expiry.

The placement will be executed in two tranches: Tranche 1 with 5,000,000 shares and 2,500,000 warrants issued immediately, and Tranche 2 with 6,250,000 shares and 3,125,000 warrants subject to shareholder approval. The shares are priced at US$0.40, representing a 370% premium to the 15-day VWAP.

The funds will support Argent's drug development pipeline, particularly CannEpil® clinical studies. The company is conducting a strategic review following LSE delisting and preparing for US National Listing. Sputnik Enterprises , acting as corporate advisor, will receive a 5% cash fee and 1,125,000 warrants.

Positive

• Successful capital raise of US$4.5 million
• Share placement price represents 370% premium to 15-day VWAP
• Progress toward US National Listing

Negative

• Potential dilution from 11.25 million new shares and 6.75 million warrants
• Recent delisting from LSE
• Need for operational and administrative review indicates potential restructuring

PERTH, Australia, Jan. 7, 2025 /PRNewswire/ -- Argent BioPharma (ASX:RGT) (OTCQB:RGTLF), a clinical-stage biopharmaceutical company addressing unmet medical needs by developing innovative treatments for central nervous system and immune-related disorders through neuro-immune modulation and advanced nano-medicine technology.

The company announces the successful completion of a US$4,500,000 (before costs) capital raise (Placement) through the subscription of 5,625,000 Units, each priced at US$0.80 (~A$1.28). Each Unit comprises two (2) fully paid ordinary shares (Placement Shares) and one (1) free-attaching warrant, exercisable at US$0.55 (~A$0.88) with an expiry date of three years from issuance (Warrants).

The Placement will be conducted in two tranches: Tranche 1: 5,000,000 Placement Shares and 2,500,000 Warrants to be issued immediately, utilising the Company's existing placement capacity under ASX Listing Rules 7.1 and 7.1A. Tranche 2: 6,250,000 Placement Shares and 3,125,000 Warrants to be issued subject to shareholder approval at an upcoming general meeting.

The Placement Shares will be issued at a price of US$0.40 (~A$0.64), representing approximately: 370% to the 15-day VWAP of A$0.173, and 377% to the last closing price of A$0.17 before the stock entered a trading halt on 3 January 2025.

The proceeds from the Placement will support the advancement of Argent BioPharma's drug development pipeline, with a particular focus on progressing CannEpil^® and its planned clinical studies.

The Company is also conducting a comprehensive strategic review of its operational and administrative functions to ensure the long-term sustainability of its operations, which is following the delisting from the LSE and establishing the work-plan toward US National Listing.

Corporate Advisor: Sputnik Enterprises Ltd acted as the corporate advisor for the Placement and will receive: A cash fee of 5% of the Placement proceeds, and 1,125,000 Warrants, subject to shareholder approval.

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

About Argent BioPharma

Argent BioPharma Limited (the "Company") (ASX: RGT);(OTCQB: RGTLF) is an innovative clinical-stage biopharmaceutical company specializing in neuroimmunology, developing advanced nano-medicines to address unmet medical needs in central nervous system (CNS) disorders and immune-related conditions. By leveraging cutting-edge technologies, including the Neuro-Immune Modulatory (NIM) System and its role in coordinating nervous and immune responses, Argent BioPharma's robust pipeline—featuring lead candidates like CannEpil^®, CogniCann^®, and CimetrA^®—targets complex diseases where effective treatments are lacking. Through a commitment to science-driven innovation and patient-centered outcomes, Argent BioPharma is reshaping the future of care for chronic, inflammatory, and neurodegenerative diseases

Follow us through our social media channels:

LinkedIn: Argent BioPharma
Twitter: @ArgentBioPharma
Facebook: Argent BioPharma

View original content:https://www.prnewswire.com/news-releases/argent-biopharma-ltd-raised-us4-500-000--302344254.html

SOURCE Argent BioPharma Ltd.

FAQ

How much did Argent BioPharma (RGTLF) raise in its January 2025 placement?

Argent BioPharma raised US$4.5 million through a placement of 5,625,000 Units priced at US$0.80 each.

What is the structure of RGTLF's January 2025 capital raising units?

Each Unit comprises two ordinary shares and one warrant exercisable at US$0.55 with a three-year expiry period.

What premium does RGTLF's placement price represent to its trading price?

The placement price represents a 370% premium to the 15-day VWAP of A$0.173 and 377% to the last closing price of A$0.17.

How will RGTLF use the proceeds from its January 2025 placement?

The proceeds will support the advancement of Argent BioPharma's drug development pipeline, particularly focusing on CannEpil® clinical studies.

What are the terms of RGTLF's corporate advisor compensation for the placement?

Sputnik Enterprises will receive a 5% cash fee of the placement proceeds and 1,125,000 warrants, subject to shareholder approval.