31
October 2024
Argent BioPharma
Ltd.
(Argent BioPharma or the Company)
September 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
September 2024.
Key
Company Activities
Collaboration with SINTIF for Advanced Chronic Wound
Management
During the Quarter, Argent BioPharma
collaborated with SINTEF, one of Europe's largest independent
research organisations, to address the critical and unmet clinical
challenge of chronic wound management, through nano-formulations as
part of the Company's ongoing expansion into new therapeutic areas.
The collaboration is targeting chronic wound infections with an
array of various nano-encapsulated active ingredients. The precise
selection and dosing of these active ingredients are being
methodically evaluated. The greater part of the ingredients have
not served previously as designated anti-microbial agents, thus
aligning with antimicrobial stewardship.
A significant aspect of this project
is the design of nano-formulations for the selected agents which
are intended to be identified in the initial screening experiments.
Nano-formulation is expected to enhance the pharmacological
characteristics and efficacy of the resulting preparation via
improved drug delivery, increased penetration through biofilms, and
sustained release of active compounds, thereby addressing the
challenges posed by antibiotic resistance and local tissue health
deterioration.
Voluntary Delisting From ASX
During the quarter, the Company
received formal approval from the ASX and its shareholders
for the Company to delisting from the official list of the ASX
subject to a number of conditions. In conjunction, the Company is
actively working to move its listing category from Equity Shares
(International Commercial Companies Secondary Listing) to Equity
Shares (Commercial Companies) category (ESCC) of the FCA's Official List. The
Company is in advanced discussions with the Financial Conduct
Authority (FCA) relating to
the transfer of listing categories and will provide shareholders
with an updated outlook on the delisting as soon as its able
to.
Corporate and Commercial News
Completion of Placement
During the quarter, the Company
raised US$2,000,000 by ways of a private placement, issuing
2,500,000 new ordinary shares at an issue price of US$0.80
(~A$1.20) with a 1 for 2 attaching option exercisable at US$1.20
(~A$1.80). The subscription price of US$0.80 represented
approximately a 400% premium to the 15-day VWAP of the Company's
securities.
Funding and Cashflow Reporting
Subsequent to the Quarter, an
agreement was reached with Mercer Street Capital Partners LLC to
refinance 300,000 from the 2020 Convertible Notes facility,
resulting in the minimum conversion price being amended to not less
than A$0.30, after which, those the refinanced notes were converted
into ordinary shares.
At the end of the September, the
Company has A$311k of cash on hand.
Accompanying this Activity Report is
a Cash Flow Report for the Quarter ending 30 September
2024.
In accordance with ASX Listing Rule
4.7C.3 the Company advises that during the September 2024 quarter,
payments to related parties totalled A$107k, 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$6k in cash
outflows associated with cost of sales and inventory production and
A$471k for Research and development costs.
Activities Post Quarter End
Argent BioPharma successfully raised
an additional A$200,000 by ways of a private placement, issuing
666,667 new ordinary shares at an issue price of A$0.30. the shares
were issued under the Company's existing Placement capacity in
accordance with Listing Rule 7.1.
-ENDS-
Authorised for release by the board of directors, for further
information please contact:
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 September 2024
|
|
Consolidated statement of cash flows
|
Current quarter
$A'000
|
Year to
date
(3 months)
$A'000
|
|
1.
|
Cash flows from operating activities
|
|
|
|
1.1
|
Receipts from customers
|
99
|
99
|
|
1.2
|
Payments for
|
|
|
|
|
(a) research
and development
|
(471)
|
(471)
|
|
|
(b) product
manufacturing and operating costs
|
|
|
|
|
i) cost of sales /
inventory
|
(6)
|
(6)
|
|
|
ii) operating costs
|
(226)
|
(226)
|
|
|
(c)
advertising and marketing
|
(55)
|
(55)
|
|
|
(d) leased
assets
|
|
|
|
|
(e) staff
costs
|
(575)
|
(575)
|
|
|
(f)
administration and corporate costs (including product
registrations)
|
(2,098)
|
(2,098)
|
|
1.3
|
Dividends received (see
note 3)
|
-
|
-
|
|
1.4
|
Interest received
|
10
|
10
|
|
1.5
|
Interest and other costs of finance
paid
|
-
|
-
|
|
1.6
|
Income taxes paid
|
-
|
-
|
|
1.7
|
Government grants and tax
incentives
|
-
|
-
|
|
1.8
|
Other (GST/VAT refund)
|
11
|
11
|
|
1.9
|
Net
cash from / (used in) operating activities
|
(3,311)
|
3,311)
|
|
|
|
2.
|
Cash flows from investing activities
|
|
|
|
2.1
|
Payments to acquire:
|
-
|
-
|
|
|
(a)
entities
|
-
|
-
|
|
|
(b)
businesses
|
-
|
-
|
|
|
(c)
property, plant and equipment
|
(2)
|
(2)
|
|
|
(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
|
(2)
|
(2)
|
|
|
|
3.
|
Cash flows from financing activities
|
Current
quarter
$A'000
|
Year to
date
(3 months)
$SA'000
|
|
3.1
|
Proceeds from issues of equity
securities (excluding convertible debt securities)
|
2,975
|
2,975
|
|
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
|
(49)
|
(49)
|
|
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
|
2,926
|
2,926
|
|
|
|
|
| |
|
|
|
4.
|
Net
increase / (decrease) in cash and cash equivalents for the
period
|
Current quarter
$A'000
|
Year to
date
(3 months)
$A'000
|
|
4.1
|
Cash and cash equivalents at
beginning of period
|
703
|
703
|
|
4.2
|
Net cash from / (used in) operating
activities (item 1.9 above)
|
(3,311)
|
(3,311)
|
|
4.3
|
Net cash from / (used in) investing
activities (item 2.6 above)
|
(2)
|
(2)
|
|
4.4
|
Net cash from / (used in) financing
activities (item 3.10 above)
|
2,926
|
2,926
|
|
4.5
|
Effect of movement in exchange rates
on cash held
|
(4)
|
(4)
|
|
4.6
|
Cash and cash equivalents at end of quarter
|
311
|
311
|
|
5.
|
Reconciliation of cash and cash
equivalents
at the end of the quarter (as shown in the
consolidated statement of cash flows) to the related items in the
accounts
|
Current quarter
$A'000
|
Previous quarter
$A'000
|
|
5.1
|
Bank balances
|
285
|
676
|
|
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)
|
311
|
703
|
|
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 in item 1
|
107
|
|
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
Note: the term "facility'
includes all forms of financing arrangements available to the
entity.
Add notes as necessary for an understanding of the sources of
finance available to the entity.
|
Total facility amount at
quarter end
$A'000
|
Amount drawn at quarter
end
$A'000
|
|
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)
|
(3,311)
|
|
8.2
|
Cash and cash equivalents at quarter
end (Item 4.6)
|
311
|
|
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)
|
7,963
|
|
8.5
|
Estimated quarters of funding available (Item 8.4 divided
by Item 8.1)
|
2.4
|
|
|
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.
31 October 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.