Argent BioPharma's Strategic Moves: OTCQB Listing and New CFO Appointment
RGT (RGT) Share Update July 2024 Monday 29th
Argent BioPharma Announces OTCQB Listing and Key Appointments
Argent BioPharma Ltd., a leading multidisciplinary drug discovery company, has announced significant developments in its latest quarterly report, including its listing on the OTCQB Venture Market and the appointment of a new Chief Financial Officer.
Instant Summary:
- Argent BioPharma's ordinary shares now trading on the OTCQB under the ticker RTGLF.
- Appointment of Igor Bluvstein as Chief Financial Officer.
- Revenue for the June quarter remained steady.
- Shore Capital appointed as UK Corporate Broker.
- Raised US$500,000 through share placement.
- A$703k cash on hand at the end of June 2024.
- Subsequent to the quarter, raised an additional US$2,000,000.
OTCQB Listing
During the June 2024 quarter, Argent BioPharma's ordinary shares were approved to trade on the OTCQB Venture Market in the United States, starting from 2 May 2024 under the ticker RTGLF. The OTCQB is a prominent market for entrepreneurial and development-stage companies, providing verified market access to U.S. investors. This listing aims to enhance liquidity and achieve a fair valuation for the company's shares.
The cross-trading facility is expected to offer enhanced investor benefits, including easier trading access for U.S. investors and greater liquidity due to a broader geographic pool of potential investors. Through this platform, U.S. investors will have access to the same level of information and disclosure available to Australian investors, but through U.S.-facing portals.
Appointment of New CFO
Argent BioPharma has appointed Mr. Igor Bluvstein as its new Chief Financial Officer. Mr. Bluvstein brings over 16 years of experience in financial leadership roles across various industries, including digital health, e-commerce, biotechnology, petrochemical, and medical cannabis. He holds a Bachelor of Arts in accounting and economics from the Open University in Israel and is a Certified Public Accountant (CPA) with E&Y.
Financial Performance and Corporate News
The company's revenue for the June quarter remained consistent with the quarterly average sales. Additionally, Shore Capital, a UK-based independent securities business, was appointed as the company's UK Corporate Broker. This appointment is part of Argent BioPharma's restructuring process to strengthen its position in pioneering drug discovery within the biopharmaceutical sector.
During the quarter, Argent BioPharma raised US$500,000 (~A$750,000) through a share placement, issuing 625,000 new ordinary shares at a price of US$0.80 per share. Each share came with one free attaching warrant exercisable at US$1.20, expiring on 3 July 2027. This placement price represented a significant premium to the 15-day VWAP prior to the trading halt on 28 June 2024.
Funding and Cashflow
At the end of June 2024, Argent BioPharma reported A$703k in cash on hand. The accompanying Cash Flow Report for the quarter detailed payments to related parties totaling A$140k, primarily consisting of fees paid to executive and non-executive directors. The report also highlighted cash outflows of A$14k for cost of sales and inventory production, and A$426k for research and development costs.
Activities Post Quarter End
Subsequent to the reporting period, Argent BioPharma raised an additional US$2,000,000 through the issuance of 2,500,000 fully paid ordinary shares at US$0.80 per share. Participants in this placement were also issued one free attaching warrant for every two shares subscribed, exercisable at US$1.20 each, expiring three years from the issue date. The proceeds from these placements will support the continuation of the company's drug development pipeline, including CannEpil® and CimetrA® in the U.S. and EU markets.
The listing on the OTCQB is expected to enhance liquidity and attract a broader investor base, potentially driving up the stock price. The appointment of a seasoned CFO like Mr. Bluvstein could instill investor confidence in the company's financial management and strategic direction. The additional funding raised will support ongoing drug development, which is crucial for long-term growth.
Investor Reaction:
Analysts are likely to view the OTCQB listing and the appointment of a new CFO positively, as these moves signal strategic growth and robust financial management. The additional funding raised through share placements also demonstrates strong investor confidence in the company's future prospects.
Conclusion:
Investors should keep an eye on Argent BioPharma's progress in its drug development pipeline and its strategic moves in the U.S. market. The company's recent developments indicate a strong commitment to growth and innovation, making it a potentially attractive investment opportunity.