Shareholder Approval Key as Argent BioPharma Restructures AusCann Acquisition

Strategic Acquisition Refined

Argent BioPharma has announced a streamlined agreement with AusCann Group Holdings to acquire a significant 48% equity interest in CannPal Animal Therapeutics. This revised deal, subject to shareholder approval expected in the first quarter of 2026, involves the issuance of 20 million fully paid shares at a deemed price of A$0.10 each. The move is designed to bolster Argent’s clinical pipeline and intellectual property portfolio, particularly enhancing its lead drug candidate, CannEpil®.

Alongside this, Argent has secured an option to acquire full ownership of the Neuvis® drug-delivery platform intellectual property within 12 months post-completion. This platform offers promising formulation and lifecycle development potential for both CannEpil® and CimetrA®, Argent’s pipeline assets targeting neurological and inflammatory conditions.

Financial Backing and Operational Overview

To support these strategic moves, Argent has secured a convertible securities financing facility of up to A$11 million from US-based institutional investors, including C/M Capital Master Fund and WVP Emerging Manager Onshore Fund. An immediate drawdown of A$3 million has been utilised for working capital and to complete the AusCann asset acquisition. This funding underscores continued confidence from long-term backers familiar with Argent’s biotech ambitions.

Operationally, Argent reported cash outflows of A$1.553 million during the December 2025 quarter, with staff costs and research and development expenses comprising significant portions. Payments to related parties, including executive and non-executive directors, totalled A$372,000. Despite these outflows, the company ended the quarter with A$1.529 million in cash and an additional A$15.65 million in unused financing facilities, providing a runway estimated to cover over 11 quarters of operations.

Implications for Argent’s Pipeline and Market Position

The acquisition and option to acquire Neuvis® IP signal Argent’s intent to sharpen its focus on its core drug candidates by integrating validated preclinical data and expanding formulation capabilities. This could enhance regulatory dossiers and facilitate early-access pathways, potentially accelerating time to market for CannEpil® and CimetrA®.

While shareholder approval remains a key milestone, the transaction and financing arrangements collectively position Argent to advance its neuro-immune modulatory platform with greater financial stability and strategic clarity. Investors will be watching closely how these developments translate into clinical progress and commercial traction in the coming quarters.