medical cannabis company Argent BioPharma (RGT) has sold global commercialisation rights to its epilepsy drug CannEpil to Splash Beverage Group in a US$5.5 million licensing-and-debt-restructuring deal that reduces Argent’s convertible-note burden by roughly 60%.
Under the agreement announced 7 July, Splash takes responsibility for development and regulatory approval of CannEpil in new markets, prioritising the United States. Rather than paying cash up front, Splash will settle the US$5.5 million consideration by forgiving convertible loan notes held by Mercer Street Global Opportunity Fund, Argent’s largest creditor and shareholder. Once Mercer’s notes are cancelled, the number of convertible notes on issue will fall from about 9.3 million to roughly 3.8 million.
Deal mechanics and investor links Splash will issue US$5.5 million of newly created preferred equity as part of the transaction. C/M Capital Partners has committed a US$1 million strategic investment earmarked for early-stage regulatory work and to help secure a pharmaceutical partner for U.S. clinical trials. In filings with the SEC, Splash identifies C/M Capital as an affiliate, and Mercer has financed Argent since 2020. That means the lenders that have funded Argent are also backing the company now taking control of Argent’s most valuable asset.
Splash reports material financial weaknesses: it showed negative stockholders’ equity of about US$15.3 million as of 31 December 2025 and included a going-concern qualification in its 2025 annual report. The company also faces potential delisting from the NYSE unless its share price rises substantially.
What Argent keeps and what Splash must do Argent retains ownership of CannEpil’s intellectual property, regulatory dossiers and manufacturing know‑how and will continue to manufacture the product under EU‑GMP. Under the licence, Argent will receive a 15% royalty on Splash’s worldwide net sales for at least 10 years in each market.
Splash acquires the regulatory pathway for up to 20 years and must make “commercially reasonable efforts” to begin a Phase I trial within 24 months and a Phase II trial within 48 months, followed by a new-drug application to the U.S. Food and Drug Administration. CannEpil already has an investigational new drug (IND) number following pre‑IND engagement with the FDA; that regulatory asset now falls under Splash’s responsibility.
Product specifics and commercial footprint CannEpil is a pharmaceutical-grade oral solution formulated at a 20:1 cannabidiol (CBD) to tetrahydrocannabinol (THC) ratio for drug‑resistant epilepsy. Argent manufactures the product and has supplied it in Ireland, the United Kingdom (via named‑patient routes and specialist clinics), Germany and Australia. In March Argent shipped its largest commercial batch to date—1,000 units to Ireland—valued at about A$783,000 in reimbursed retail terms.
Financial impact on Argent Argent reported A$736,000 in cash at the end of the March 2026 quarter against a quarterly operating cash outflow of A$788,000. Its 31 December accounts showed negative net assets of about A$8.4 million and accumulated losses of A$150.4 million. Mercer’s convertible‑note facility was most recently valued by Argent at A$14.6 million.
The convertible notes carry conversion terms that allow creditors to convert debt into new Argent shares priced at 90% of the recent low. With Argent’s stock trading near A$0.05—close to the A$0.04 floor written into the notes—conversion would yield the maximum number of shares, diluting existing shareholders. Cancelling Mercer’s notes removes roughly 60% of Argent’s convertible-note exposure immediately, but Argent will lose much of its near‑term revenue from CannEpil sales and will remain dependent on further financing.
Pipeline and strategy shift Following the deal, Argent is repositioning from a cannabis commercial operator to a clinical‑stage developer focused on nano-engineered neuro‑immune therapies. The company rebranded from MGC Pharmaceuticals to Argent in 2024 and has lodged a U.S. provisional patent for a NanoBodies platform aimed at septic shock.
Argent’s pipeline includes: – CimetrA: positioned as a Phase III clinical candidate for anti‑inflammatory indications that saw emergency‑use demand during the pandemic. – CogniCann: a dementia oral spray at Phase II. – CannPal: a veterinary epilepsy product acquired from AusCann and at pre‑commercial stage.
Argent’s own projected launch dates place meaningful sales from these earlier‑stage assets no earlier than 2030.
Immediate consequences and remaining risks The transaction reduces Argent’s immediate debt pressure and clears a large portion of the company’s largest convertible facility, improving its short‑term balance sheet metrics. However, Argent gives Splash the commercialisation pathway for CannEpil and forfeits near‑term revenue associated with that asset.
Risks remaining for stakeholders include: – Splash’s financial instability and NYSE delisting risk, which could delay U.S. development efforts. – Continued dilution risk for Argent shareholders if remaining convertible notes are converted at low share prices. – Execution risk in meeting the 24‑ and 48‑month trial start deadlines required under the licence.
Bottom line Argent’s deal transfers commercial responsibility for its lead medical cannabis product, CannEpil, to Splash in exchange for conversion of roughly US$5 million of debt and a US$1 million strategic investment. Argent retains IP, manufacturing and receives a 15% royalty, but sacrifices much of the drug’s near‑term revenue and shifts the company toward clinical development of other candidates with commercial timelines beyond 2029.
