Argent BioPharma has entered into a binding agreement with AusCann Group Holdings to purchase its 48% shareholding in CannPal Animal Therapeutics, a company developing cannabinoid-based treatments for animal health.
Under the updated deal, Argent will pay $2 million through a share-based transaction, issuing 20 million shares at 10 cents each, pending shareholder approval. Those shares will be subject to a voluntary escrow period of three months.
The transaction replaces a broader non-binding term sheet announced in August last year and does not include AusCann's equity interest in Eurocann.
Argent said acquiring CannPal would give it immediate access to validated preclinical and real-world data, helping to advance the regulatory and commercial pathways for its lead cannabinoid pharmaceutical asset, CannEpil, with a particular focus on Europe.
The agreement also includes an option for Argent to acquire the intellectual property tied to the Neuvis drug-delivery platform.
Should the option be exercised within 12 months of the deal's completion, it would be settled through the issue of an additional $2 million in Argent shares, priced at the company's 20-day volume-weighted average price at the time of exercise.
Completion of the transaction still requires shareholder approval at a general meeting to be called in the near term.
If the acquisition proceeds, AusCann executive director Andrew Chapman will join Argent's board as an executive director, while Argent managing director and chief executive Roby Zomer will move to the role of non-executive chairman.
The company added that the deal is consistent with its planned US dual-listing strategy and comes after an $11 million financing facility was secured in November.
