Argent Biopharma, previously MGC Prescription drugs, has entered 2026 in a precarious monetary place, in response to its not too long ago revealed quarterly figures.
Within the three months to December 31, 2025, the now Australia-based agency noticed working money outflows rising 35% to A$1.55m, up from A$1.15m within the earlier interval.
In the meantime, ‘Buyer receipts’ collapsed from A$133,000 to only A$2,000 within the December quarter, a 98% drop, whereas spending elevated throughout most classes.
Employees prices rose 16% to A$506,000, and administration bills jumped 49% to A$902,000. Funds to administrators almost quadrupled, from A$94,000 to A$372,000. Analysis and growth spending, in the meantime, fell from A$88,000 to A$72,000, the smallest line merchandise among the many firm’s working prices and a fraction of what was paid to administrators in the identical interval.
The corporate supplied no clarification for the collapse in buyer receipts or the rise in funds to administrators. Notably, in late 2022, when the corporate was nonetheless working as MGC Prescription drugs, the board carried out a 35% minimize to director charges to redirect capital towards analysis programmes. Quarterly director funds subsequently fell to A$172,000.
Over the most recent reporting interval, related-party funds to administrators reached A$372,000, greater than 40% above pre-cut ranges, whereas R&D spending fell to A$72,000, a fraction of the A$521,000 reported within the quarter earlier than charges had been decreased.
The corporate entered the quarter with simply A$7,000 within the financial institution, and would have been unable to proceed working and not using a A$3.1m fairness increase throughout the interval. It ended the quarter with A$1.53m in money, giving it roughly one quarter of runway at its present burn charge.
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Argent claims 11.1 quarters of funding obtainable, however that determine depends closely on A$15.65m in unused convertible word amenities from US-based Mercer Road Alternative Fund and C/M Capital Companions. The brand new A$11m convertible facility with C/M Capital, introduced in November 2025, contains conversion phrases on the decrease of A$0.10 or 90% of the bottom every day volume-weighted common value over the previous 15 buying and selling days, a construction that successfully ensures dilution at below-market costs.
It additionally seems to have paired again a major incoming cope with AusCann Group. Within the earlier quarter, Argent described a US$15m acquisition of AusCann Group property, together with the Neuvis drug-delivery platform, a 48% stake in CannPal Animal Therapeutics, a 19.99% holding in ECC Pharm with its German distribution community, and entry to EU GMP manufacturing, paid for with 25m shares at a deemed value of US$0.60 every.
By January, the binding settlement had been stripped again to only the CannPal stake and a Neuvis possibility, for 20m shares at A$0.10 every. EuroCann, ECC Pharm and the German distribution community had been now not a part of the deal.
The corporate says the CannPal acquisition will present preclinical knowledge to assist the regulatory file for its lead cannabinoid product CannEpil, which targets drug-resistant epilepsy. Put up-completion, AusCann govt director Andrew Chapman will be part of Argent’s board in an govt position, whereas present CEO Roby Zomer transitions to non-executive chairman. If Argent workout routines the Neuvis possibility, it should additionally enter right into a manufacturing royalty settlement with AusCann on internet gross sales of derived merchandise.
The September quarter included some medical progress, a hospital provide settlement with the College Medical Centre Ljubljana for cannabinoid API, and a peer-reviewed case research on CannEpil in treatment-resistant epilepsy. No comparable medical milestones had been reported for the December quarter.
The corporate, which delisted from the London Inventory Alternate on the finish of 2024 after beforehand in search of to go away the ASX, now stays on the Australian trade whereas pursuing a US nationwide trade dual-listing that has but to materialise.
