Why Argent BioPharma (ASX:RGT) is licensing out cannabis assets to refocus on immune-modulation drugs

Sonal Goyal

12 November 2026 02:07 PM AEDT

Why Argent BioPharma (ASX:RGT) is licensing out cannabis assets to refocus on immune-modulation drugs

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Key Highlights

Argent granted a 10-year exclusive worldwide licence of four cannabis genotypes to Thai Phytomed International for a profit-based royalty.
Argent received $600,000 in the quarter under its $11 million convertible securities facility, yet cash still fell to $11,000.
The company reports $7.4 million of unused Facility capacity, which produced an estimated 10.1 quarters of funding.
The FDA opened an investigational new animal drug file for CannEpil in canine cancer-related pain, an early regulatory step rather than an approval.

Argent BioPharma (ASX:RGT) is turning its legacy cannabis medicine portfolio into licensing deals while redirecting its own resources to immune-modulation and anti-inflammatory programmes. Its most recent move, announced on 27 October 2026, was a 10-year exclusive worldwide licence of four cannabis genotypes to Thai Phytomed International in return for a profit-based royalty.

The strategy is unfolding against a very thin cash position. According to its September quarter Appendix 4C, released on 23 October 2026, Argent held just $11,000 in cash at 30 September 2026 and relies on drawdowns under convertible securities and Loan facilities to fund operations.

What Argent does

Argent, based in Subiaco, Western Australia, describes itself as an immune science and specialty biopharmaceutical company. In October 2026 it set out a refined strategy, with RGT-CA91980 as its lead internally developed programme, building on earlier CimetrA and ArtemiC work, alongside a preclinical nanobody programme. It is also evaluating research into chronic inflammation and ageing biology, while stating that it does not present CimetrA as an anti-ageing medicine.

Licensing deals: royalties, not yet revenue

In July 2026 Argent granted Splash Beverage Group, now Endovia Health Sciences, an exclusive global licence for CannEpil. The Quarterly Report says the US$5.5 million upfront consideration is being satisfied by forgiving Mercer Street convertible notes, removing what Argent called its principal secured liability. Argent keeps the intellectual property, manufactures CannEpil on a cost-plus basis and receives a 15% Royalty on human therapeutic sales and 10% on veterinary uses.

On 26 August 2026 the US FDA's Center for Veterinary Medicine opened an investigational new animal drug file for Endovia's CannEpil programme in canine cancer-related pain. As Argent itself notes, this is an early regulatory step and not an approval.

In late September Argent took an exclusive, royalty-bearing licence to commercialise NLC's antiviral products Tollovir, Tollovid and NutraVir outside China, paying royalties of 6% to 12% of net sales. The October cannabis genetics licence leaves Thai Phytomed responsible for commercialisation costs and approvals. None of these arrangements has yet produced material reported income: customer receipts in the September quarter were $10,000.

Cash, facilities and dilution

The Appendix 4C shows net operating outflows of $734,000, including $149,000 in staff costs and $48,000 in research and development. Argent received $600,000 during the quarter under its $11 million convertible securities facility with C/M Capital Master Fund and WVP Emerging Manager Onshore Fund, but cash still fell from $141,000 to $11,000. It reported $7.4 million of unused facility capacity, which produced an estimated 10.1 quarters of funding. On 1 October 2026 it added Unsecured Loan facilities of US$500,000 from the same counterparties.

The Annual General Meeting on 20 November 2026 will consider ratifying earlier convertible note and option issues and approving further convertible notes, Options and performance rights, as well as a 10% Placement capacity.

Risks and what to watch

Argent's near-term viability depends on continued access to its financing facilities, whose drawdowns may be subject to conditions not detailed here. Its licensing income depends on partners' commercial success and regulatory progress, and its lead immune-modulation programmes are at early stages. Related party payments of $73,000 were made in the quarter. A notice of a new substantial holder was lodged on 11 November 2026.

Shareholders will vote on the funding-related resolutions at the AGM on 20 November 2026; any royalty receipts and further drawdowns will show in the December quarter report.

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