Argent BioPharma signs US$5.5M licensing deal
- Argent BioPharma entered a global licensing transaction with Splash Beverage Group for its neurological asset CannEpil.
- The transaction includes a US$5.5 million upfront consideration structured to fully extinguish the company's outstanding convertible debt.
- The agreement supports the company's strategy to progress towards a national exchange listing transaction in the United States.
Argent BioPharma (ASX:RGT) has executed a binding transaction framework for the exclusive global licensing of its epilepsy asset CannEpil to Splash Beverage Group (NYSE American:SBEV) for an upfront consideration of US$5.5 million.
This agreement follows previous financial restructuring efforts by the company to manage its balance sheet and debt obligations over the past year.
Under the agreed terms, the upfront consideration will be satisfied through the forgiveness of approximately US$5.5 million of outstanding convertible notes held by Mercer Street Global Opportunity Fund.
The transaction fully eliminates the principal secured liability from the balance sheet of the company and releases all associated security interests granted under the facility.
Following the announcement, the Argent BioPharma share price was unchanged at $0.04.
The agreement specifies that the company will retain total ownership of all existing and future intellectual property related to CannEpil while receiving a 15% net revenue royalty on future global sales.
The licensing arrangement also designates the company as the manufacturing partner to produce the asset through its European Union Good Manufacturing Practice facilities.
