30
April 2024
Argent BioPharma
Ltd
March 2024 Quarter Activity
Report and Cash Flow Statement
Key
Highlights:
|
·
|
Following approval from shareholders
at a general meeting, the Company officially changed its name to
Argent BioPharma Ltd
|
|
·
|
Dr. Shlomo Sadoun joined Argent
BioPharma's advisory board with over 18 years of experience in the
pharmaceutical sector
|
|
·
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Argent BioPharma's revenue for
the March quarter was in line with the quarterly average
sales
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Argent BioPharma Ltd (Argent BioPharma, RGT or the Company), an innovative and
multidisciplinary drug discovery company
within the biopharmaceutical sector, is pleased to provide its
Quarterly Activity Report for the three months ending
31st March 2024.
Roby Zomer, Managing Director and CEO of Argent BioPharma,
commented: "We are pleased to share positive developments from the
business during the March quarter. RGT successfully concluded its
comprehensive restructuring process, following approval from
shareholders the Company officially changed its name to Argent
BioPharma Ltd. Additionally, we are delighted to welcome Dr. Shlomo
Sadoun to Argent BioPharma's advisory board with his wealth of experience and expertise in the
pharmaceutical sector."
Key
Company Activities
Change of Name
Following approval from shareholders
at a general meeting held 18 March 2024, the Company officially
changed its name to Argent BioPharma Ltd on 3 April 2024 (effective
date of change on the LSE was 10 April 2024). Additionally, the
Company's ASX and LSE code migrated to RGT. This signalled the
conclusion of a comprehensive restructuring process where Argent
BioPharma is now set to position itself as a significant player in
pioneering drug discovery within the biopharmaceutical
sector.
Refinancing of Convertible Securities
Agreement
During the quarter the Company
executed a Deed of Variation with Mercer Street Global Opportunity
Fund, LLC (Mercer) in
respect of the convertible securities agreement entered into
between the Company and Mercer in 2020. This includes the
refinancing of 500,000 convertible notes from the 2020 convertible
note facility (Notes) which
totals $2,100,000. A commercial agreement has been reached by which
the minimum conversion price of the Notes has been reduced from not
less than $10.00 to not less than $0.35.
The Company intends to reach
additional agreements with Mercer to amend the terms of the
remaining 2020 convertible note facility and the 2022 convertible
note facility.
March Quarter Sales Update
Argent BioPharma's
revenue for the March quarter was in line with the quarterly
average sales.
Activities Post Quarter End
Appointment of Dr. Shlomo Sadoun to Advisory
Board
Dr. Shlomo Sadou joined Argent
BioPharma's advisory board. Dr. Shlomo Sadoun has over 18 years of
experience in the pharmaceutical sector. Dr. Sadoun co-founded and
leads SK-Pharma Group, a global pharmaceutical company operating in
18 countries. SK-Pharma specialises in producing and marketing
generic, specialty pharma, hybrid generics, and biosimilar
pharmaceutical products. Additionally, Dr. Sadoun serves as the CEO
of Arphio, an orphan drug company utilising proprietary technology
to promote, market, and sell orphan drugs worldwide.
Corporate and Commercial News
Funding and Cashflow Reporting
At the end of the March, the Company
has c.A$1.999 million of cash on hand.
Accompanying this Activity Report is
a Cash Flow Report for the Quarter ending 31 March 2024.
In accordance with ASX Listing Rule
4.7C.3 the Company advises that during the March 2024 quarter,
payments to related parties totalled A$84k, 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$422k in cash outflows associated withcost of
sales and inventory production and A$525k for Research and
development costs.
Results of General Meeting
On 18 March 2024 the Company held a
General Meeting of shareholders. The Company announced that all
motions put to the meeting were voted by poll, with all resolutions
carried.
-ENDS-
Authorised for release by the board of directors, for further
information please contact:
About Argent BioPharma
Argent BioPharma purpose is to
address unmet medical needs through the pioneering integration of
Nanotechnology and Multidisciplinary research methods. Our approach
heralds a transformative shift in healthcare, combining the power
of multi-targeted drug therapies with precision nanoscale delivery
to enhance treatment efficacy while reducing side effects. Central
to our ethos is making these innovative treatments accessible,
ensuring they reach those underserved by current medical solutions.
As we endeavor to become globally recognized in the life science
industry, we are committed to bridging healthcare gaps, redefining
industry standards, and providing impactful solutions and hope to
communities worldwide.
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
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|
ABN
|
|
Quarter ended ("current quarter")
|
|
30 116 800 269
|
|
31 March 2024
|
|
Consolidated statement of cash flows
|
Current quarter
$A'000
|
Year to
date
(9 months)
$A'000
|
|
1.
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Cash flows from operating activities
|
|
|
|
1.1
|
Receipts from customers
|
116
|
1,020
|
|
1.2
|
Payments for
|
|
|
|
|
(a) research
and development
|
(525)
|
(1,355)
|
|
|
(b) product
manufacturing and operating costs
|
|
-
|
|
|
i) cost of
sales / inventory
|
(422)
|
(945)
|
|
|
ii) operating costs
|
(56)
|
(149)
|
|
|
(c)
advertising and marketing
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(1,029)
|
(1,843)
|
|
|
(d) leased
assets
|
(17)
|
(72)
|
|
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(e) staff
costs
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(1,107)
|
(3,908)
|
|
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(f)
administration and corporate costs (including product
registrations)
|
(1,382)
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(5,165)
|
|
1.3
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Dividends received (see
note 3)
|
-
|
-
|
|
1.4
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Interest received
|
-
|
-
|
|
1.5
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Interest and other costs of finance
paid
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(1)
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(24)
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1.6
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Income taxes paid
|
-
|
-
|
|
1.7
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Government grants and tax
incentives
|
2
|
6
|
|
1.8
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Other (GST/VAT refund)
|
-
|
-
|
|
1.9
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Net
cash from / (used in) operating activities
|
(4,421)
|
(12,436)
|
|
|
|
2.
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Cash flows from investing activities
|
|
|
|
2.1
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Payments to acquire:
|
-
|
-
|
|
|
(a)
entities
|
-
|
-
|
|
|
(b)
businesses
|
-
|
-
|
|
|
(c)
property, plant and equipment
|
(127)
|
(144)
|
|
|
(d)
investments
|
-
|
-
|
|
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(e) intellectual
property
|
-
|
-
|
|
(f) other
non-current assets
|
-
|
-
|
|
2.2
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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
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Dividends received (see
note 3)
|
-
|
-
|
|
2.5
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Other (cash acquired through assets
acquisition)
|
-
|
-
|
|
2.6
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Net
cash from / (used in) investing activities
|
(127)
|
(144)
|
|
|
|
3.
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Cash flows from financing activities
|
|
|
|
3.1
|
Proceeds from issues of equity
securities (excluding convertible debt securities)
|
75
|
14,950
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|
3.2
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Proceeds from issue of convertible
debt securities
|
-
|
-
|
|
3.3
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Proceeds from exercise of
options
|
-
|
-
|
|
3.4
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Transaction costs related to issues
of equity securities or convertible debt securities
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(11)
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(606)
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|
3.5
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Proceeds from borrowings
|
-
|
-
|
|
3.6
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Repayment of borrowings
|
-
|
-
|
|
3.7
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Transaction costs related to loans
and borrowings
|
-
|
-
|
|
3.8
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Dividends paid
|
-
|
-
|
|
3.9
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Other (loan entity which where
control was gained after quarter-end)
|
-
|
-
|
|
3.10
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Net
cash from / (used in) financing activities
|
64
|
14,344
|
|
|
|
|
| |
|
|
|
4.
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Net
increase / (decrease) in cash and cash equivalents for the
period
|
Current quarter
$A'000
|
Year to
date
(9 months)
$A'000
|
|
4.1
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Cash and cash equivalents at
beginning of period
|
6,482
|
240
|
|
4.2
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Net cash from / (used in) operating
activities (item 1.9 above)
|
(4,421)
|
(12,436)
|
|
4.3
|
Net cash from / (used in) investing
activities (item 2.6 above)
|
(127)
|
(144)
|
|
4.4
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Net cash from / (used in) financing
activities (item 3.10 above)
|
64
|
14,344
|
|
4.5
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Effect of movement in exchange rates
on cash held
|
1
|
(5)
|
|
4.6
|
Cash and cash equivalents at end of quarter
|
1,999
|
1,999
|
|
5.
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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
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Bank balances
|
1,972
|
6,457
|
|
5.2
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Call deposits
|
27
|
26
|
|
5.3
|
Bank overdrafts
|
-
|
-
|
|
5.4
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Other (provide details)
|
-
|
-
|
|
5.5
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Cash and cash equivalents at end of quarter (should equal
item 4.6 above)
|
1,999
|
6,482
|
|
6.
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Payments to related parties of the entity and their
associates
|
Current quarter
$A'000
|
|
6.1
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Aggregate amount of payments to
related parties and their associates included in item 1
|
84
|
|
6.2
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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.
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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)
|
(4,421)
|
|
8.2
|
Cash and cash equivalents at quarter
end (Item 4.6)
|
1,999
|
|
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)
|
9,651
|
|
8.5
|
Estimated quarters of funding available (Item 8.4 divided
by Item 8.1)
|
2.2
|
|
|
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 April 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.
