Argent BioPharma (ASX:RGT) has taken a significant step toward its next phase of growth, securing a new $11 million financing facility from US-based venture fund C/M Capital to complete the acquisition of AusCann Group assets and accelerate commercial development plans.
The agreement strengthens the company’s capital position. It provides more than a year of operating runway as it prepares for expansion into North and South America and advances toward a potential dual listing on a major US stock exchange.
The financing package, structured as an unsecured convertible securities facility, includes an immediate $3 million drawdown to finalise the AusCann acquisition and support working capital. Further tranches totalling up to $8 million will be available over the next 18 months, subject to standard conditions.
C/M Capital, which has backed Argent since 2020, will continue to play a significant role in the company’s strategy, leveraging its deep experience in biotech and biopharma investments in both the US and Australia.
The AusCann assets, valued at US$15 million, provide Argent with several strategic advantages. These include the Neuvis oral drug delivery technology, FDA-facing preclinical epilepsy data, CannPal’s clinical and IP portfolio, and access to a fully operational EU-GMP cannabinoid manufacturing facility in Europe. Argent will also obtain a 19.99 per cent stake in ECC Pharm, granting entry into an extensive German pharmaceutical distribution network.
Reflecting on the new partnership, managing director and CEO Roby Zomer emphasised the strategic significance of the investment.
“We warmly welcome this investment and the entry of highly experienced U.S. market professionals into our shareholder base. Their decision to partner with Argent BioPharma reflects a clear alignment with our strategy and confidence in the milestones ahead, including the completion of the AC8 asset integration and our progression toward a U.S. national market listing.
"Working alongside a fund and fund manager with deep expertise in the U.S. capital markets brings additional insight and discipline that will support our next phase of growth. This partnership strengthens our operational and financial position, and we look forward to advancing Argent as a fully funded, efficient, and globally focused biopharmaceutical company.
As part of the transition, the company announced board and management changes, including the appointment of Andrew Chapman as Executive Director and the transition of Zomer to Non-Executive Chairman. Gary Hermon will step down from the board, while Daniel Robinson will continue as an independent non-executive director.