June 2024 Quarter Activity Report and Cash Flow
Source: RNS
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 30th 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 Roby Zomer CEO & Managing Director +61 8 6555 2950 |
Argent BioPharma Rowan Harland Company Secretary +61 8 6555 2950
|
|
UK Corporate Broker Shore Capital Toby Gibbs / James Thomas / Lucy Bowden +44 (0)207 408 4090 |
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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) |
||
|
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 registrations) |
(1,235) |
(8,718) |
|
|
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 $A'000 |
Year to date (12 months) $SA'000 |
|
|
3.1 |
Proceeds from issues of equity securities (excluding convertible debt securities) |
751 |
15,701 |
|
|
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 securities |
(29) |
(597) |
|
|
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) |
|
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 |
|
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 |
|
6.1 |
Aggregate amount of payments to related parties and their associates included in item 1 |
140 |
|
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 Add notes as necessary for an understanding of the sources of finance available to the entity. |
Total facility amount at quarter end |
Amount drawn at quarter end |
|
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 end |
- |
7,652 |
|
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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