Argent BioPharma Secures AU$11M Facility to Finalize AusCann Assets Purchase

SYDNEY – Argent BioPharma Ltd., a developer of cannabinoid-based treatments for neurological disorders, has arranged an AU$11 million convertible debt facility to close its pending acquisition of key assets from the defunct AusCann Group Holdings Ltd. and extend its operational cash flow for more than a year.

The deal, announced this week, involves U.S.-based lenders C/M Capital Master Fund LP and WVP Emerging Manager Onshore Fund LLC. It starts with a AU$3 million immediate tranche to cover the AusCann transaction costs and general expenses, followed by up to AU$8 million in additional drawdowns over the next 18 months. The notes carry a 10% premium on principal, mature in 18 months and convert into shares at a discount tied to recent trading prices, with a floor of 4 Australian cents per share. The arrangement also includes warrants exercisable at 75% of the funded value.

This financing caps a process that began in April with a data-sharing pact between the companies and escalated in August to a $15 million asset sale agreement. AusCann, which delisted from the ASX last year after financial strains, is handing over its Neuvis oral delivery system for cannabinoids, a 48% stake in pet therapeutics firm CannPal Animal Therapeutics Ltd., and nearly 20% ownership in European Cannabis Corp. GmbH, a German producer with EU-GMP certification. These pieces give Argent entree to preclinical epilepsy trial data, animal health applications, and supply chain footholds in Europe – assets that could accelerate its pipeline in central nervous system drugs.

Argent’s managing director, Roby Zomer, called the funding a vote of confidence from investors versed in American markets. “This partnership strengthens our operational and financial position,” Zomer said in the release, adding that it would aid integration of AusCann’s AC8 epilepsy candidate and preparations for a secondary listing on a major U.S. exchange.

Shares in Argent rose 9.2% to 8.3 Australian cents on the news, reflecting trader bets on the company’s expanded reach in a field where regulatory barriers often stifle smaller players. Yet the convertible terms introduce dilution risks for existing holders if share prices dip, a common trade-off in biotech funding rounds where cash is king but equity erosion lurks. The facility also incorporates a deed of variation amending terms on outstanding convertible notes from Mercer Street Global Opportunity Fund LLC under its 2020 and 2022 agreements, pushing its due date to late 2026 on similar conversion rules, a move that tidies Argent’s balance sheet ahead of the U.S. push.

For a firm like Argent, which has leaned on partnerships to build out cannabinoid therapies without massive upfront capital, this step marks a calculated bet on trans-Atlantic expansion. While the U.S. listing could unlock deeper pools of institutional money, success ultimately depends on a seamless integration of the new assets and positive readouts from ongoing trials. In a sector where funding dries up fast amid shifting federal policies, securing American backers now positions Argent to weather near-term volatility while chasing revenue from approved products.

Strategically, this deal is a pragmatic consolidation that strengthens Argent’s toolkit without overextending resources. If the AusCann assets deliver on their promise, particularly in epilepsy and veterinary markets, the company could emerge as a lean contender in the global therapeutics arena. Investors should monitor quarterly updates for signs of seamless merging and listing momentum, as those will dictate the real payoff.