Why Argent BioPharma (ASX:RGT) is relying on a CannEpil licence and convertible funding as cash sits below one quarter of outflows

Sonal Goyal

16 October 2026 11:02 PM AEDT

Why Argent BioPharma (ASX:RGT) is relying on a CannEpil licence and convertible funding as cash sits below one quarter of outflows

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Key Highlights

Argent BioPharma reported a net loss of A$7.71 million for the year to 30 June 2026, down from A$17.84 million, with cash of A$141,456 and net liabilities of A$9.45 million.
On 7 July 2026 the company signed a binding framework granting Splash Beverage Group an exclusive global CannEpil licence for US$5.5 million, satisfied by forgiving convertible notes.
The auditor flagged a going-concern material uncertainty, and the convertible Facility matures on 28 November 2026.

Argent BioPharma (ASX:RGT) is a cannabinoid-focused drug developer whose latest filings turn on a single question: can licensing deals and partner funding replace convertible-note Debt before its cash is exhausted? The Annual Report for the year to 30 June 2026, authorised on 31 August 2026, shows a smaller loss than a year earlier, but also a cash balance of A$141,456, net liabilities of A$9.45 million and a going-concern material uncertainty flagged by the auditor.

What Argent does

Argent develops treatments for chronic and severe diseases, with projects in oncology and immunology. Its lead asset, CannEpil, is a cannabinoid therapy aimed at drug-resistant epilepsy. According to the annual report, ArtemiC was the subject of an independent University of South Florida mouse study that reported up to 85 per cent survival in treated animals against none in controls. That result is preclinical evidence only.

On 13 April 2026 Argent completed the Acquisition of AusCann's 48 per cent stake in CannPal Animal Therapeutics, paid for with 20 million shares, together with an option over the Neuvis drug-delivery platform. CannPal's veterinary candidate CPAT-01, which targets osteoarthritis pain in dogs, met its primary endpoint in a Phase 2C study. A Phase 3 pilot is the next step, and CannPal is seeking a funding partner. The company's filings do not describe any Argent product as approved by the US Food and Drug Administration.

The CannEpil licence

After the June quarter, on 7 July 2026, Argent signed a binding framework with Splash Beverage Group, a company listed on NYSE American, granting an exclusive global licence to develop and commercialise CannEpil. The US$5.5 million consideration is to be satisfied by forgiving the same amount of secured convertible notes owed to Mercer Street, with no new shares issued. Argent retains the intellectual property, would Supply EU-GMP Manufacturing at cost plus up to 20 per cent and would receive a 15 per cent Royalty on net revenues. The licensee would fund the US pathway, including trials. The annual report notes that completion depends on conditions precedent, including Shareholder approval, so the arrangement is an agreed framework rather than closed revenue.

Financial position

Revenue for the year was A$161,187, down 11 per cent, and the net loss narrowed to A$7.71 million from A$17.84 million. Operating cash outflow fell to A$4.03 million from A$9.28 million. Liabilities of A$10.74 million exceeded Assets of A$1.29 million, leaving a Working Capital Deficit of A$8.08 million.

The June 2026 quarterly cash-flow report showed closing cash of A$141,000, down from A$736,000, and a quarterly operating outflow of A$600,000 with no receipts. The report's funding estimate of 26.3 quarters adds A$15.65 million of undrawn convertible facility capacity to cash. On cash alone, coverage is less than one quarter, so the runway depends on lenders continuing to provide funds.

Funding and dilution

Argent has an A$11 million convertible securities facility, agreed in November 2025 with C/M Capital Master Fund and WVP Emerging Manager Onshore Fund. A$3 million was drawn initially and a further A$600,000 after year-end, with Maturity extended to 28 November 2026 and a stated minimum conversion price of A$0.04. At the report date, 68.3 million options, 20.1 million performance rights and 8.8 million convertible notes were on issue. Further conversions or share issues would dilute existing holders.

The main risks are funding, the conditional nature of the Splash transaction and the cost of clinical development. The company's Slovenian Subsidiary was placed into Liquidation in December 2025 after manufacturing ceased.

What to Watch

The near-term milestones are shareholder approval of the Splash licence and the 28 November 2026 maturity of the convertible facility.

FAQs

Q:What did Argent BioPharma agree with Splash Beverage Group?

A:On 7 July 2026 Argent signed a binding framework granting Splash an exclusive global licence to develop and commercialise CannEpil, with US$5.5 million of consideration satisfied by forgiving secured convertible notes owed to Mercer Street, plus a 15 per cent royalty on net revenues. Completion depends on conditions including shareholder approval.

Q:How much cash did Argent BioPharma hold at 30 June 2026?

A:The annual report shows cash of A$141,456. The June quarterly report showed a quarterly operating outflow of A$600,000, so cash alone covered less than one quarter.

Q:When does Argent's convertible facility mature?

A:The A$11 million convertible securities facility has a maturity extended to 28 November 2026 and a stated minimum conversion price of A$0.04.

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