Argent Biopharma
Argent Biopharma (previously MGC Pharmaceuticals), the first company in history to launch an IPO on the London Stock Exchange, has announced its intention to de-list from the exchange.
This week, the company told investors that ‘following a detailed review’ of the listing requirements and associated costs of transferring all of its ordinary shares from the Australian Stock Exchange (ASX), the company has decided to cancel its admission on the LSE.
In late August, the company, which is listed on the LSE, ASX and OTCQB Venture platforms, unveiled plans to formally delist from the Australian Securities Exchange (ASX).
The company cited a number of reasons for its departure from the ASX but primarily referenced a significant lack of liquidity in the trading of its shares.
Additionally, the company has faced persistent fundraising challenges in Australia, with recent capital-raising efforts primarily supported by investors from the UK and the US, highlighting limited local investor interest.
It also suggested at the time that it considers its LSE listing as its primary given the stronger interest and investor base there.
Three months later, and the company has apparently reconsidered this move, and is now opting to keep its listing on the ASX and OTCQB Venture Market instead.
According to the company, its delisting decision is driven by the company’s desire to ‘streamline and simplify processes’ and increase administrative efficiencies.
Notably, the company may still explore opportunities to expand its accessibility to investors, including a potential dual listing on a United States-based exchange.
The delisting process is expected to be completed by December 31, 2024, with the last day of trading on the LSE scheduled for Monday, December 31, 2024, at 08:00 (GMT).
It follows in the footsteps of Oxford Cannabinoid Technologies, another of the first wave of companies to launch on the LSE when the listing rules were amended in 2021.
In May, OCT said it expects to have a ‘far larger pool of capital’ available to it from private funding markets, while citing similar cost efficiencies related to the reporting requirements of a publicly traded company.
At the time, CEO, Clarissa Sowemimo-Coker, told Business of Cannabis that she predicted OCT would not be the last company to opt for an exit on the public markets.
Argent Biopharma’s exit is the latest in a string of public cannabis companies to delist, diversify, or exit the cannabis sector altogether amid an increasingly tough environment for biopharma companies, particularly cannabis-focused entities, who rely on investment to keep them afloat.
Mixed picture for Danish cannabis stocks
Last month, Business of Cannabis reported that the Danish government had announced plans to make its medical cannabis scheme permanent, sending the stocks of both Stenocare and DanCann Pharma stock up by double digits.
Just days after the Minister of the Interior and Health Sophie Løhde met with the parties behind Denmark’s trial scheme to discuss plans to make the scheme permanent, the Ministry announced that political parties have reached a consensus to enact legislation, making medical cannabis treatment a permanent fixture in Denmark’s healthcare landscape.
This is set to be brought into effect when the Danish Pilot Programme expires in December 2025.
Stenocare has largely managed to maintain the gains in stock price seen immediately after the initial plans were announced, in part thanks to its significant footprint in the scheme.
Its share price recovery was also aided by an announcement this week that Stenocare’s pioneering Astrum oil product, which it says significantly enhances the bioavailability of cannabinoids in the patient’s bloodstream, had been approved for sale in Norway.
Stenocare’s balanced 10-10 Astrum product (10 mg/ml THC and 10 mg/ml CBD) is now expected to be available to Norwegian patients in the next 30 days.
It marks a dramatic turnaround in fortunes for the company, which has had to significantly reduce its revenue expectations for this year twice due to issues within the Danish market.
Meanwhile, its Danish stablemate DanCann Pharma has fared less favorably on the markets, seeing its stock price fall sharply this week despite the positive news from Denmark.
In a release last week, DanCann said that under the new measures a reference group established to ensure continued collaboration and knowledge sharing between the government and industry will now be extended to 2026, and its CEO, Jeppe Krog Rasmussen, represents the company through its membership in the Medicinsk Cannabis Industri (MCI).
“We are pleased to see the foundation of our business – and the basis for so many patients’ treatment with medicinal cannabis – now firmly established. The risk that the Pilot Programme might be discontinued has finally been eliminated. This provides much-needed certainty and stability for businesses, patients, and physicians within and around the industry,” he added.
Ananda Developments
Aquis-listed Ananda Developments, which is now collaborating in a number of major UK clinical trials, announced a further milestone in the development of its proprietary drug candidate MRX1 this week.
As previously reported, its MRX1 compound is now involved in two RCT’s being conducted by the University of Edinburgh, which have already secured £1.55m in funding to explore its effectiveness in treating endometriosis-associated pain and CBD on chemotherapy-induced peripheral neuropathy.
Last week, Ananda told Business of Cannabis that, alongside the university, they are currently ‘working through all the backend stability testing and regulatory pharmaceutical requirements’ that need to be completed before it can begin dosing humans.
Now, Ananda says it has successfully confirmed the stability of MRX1 through several critical timepoints, ensuring the drug’s properties and characteristics remain consistent throughout its storage and use.
This achievement is crucial for the scientific integrity of the upcoming clinical trials, guaranteeing reliable results and participant safety.
With stability confirmed, MRX1 is now poised to enter the final preparatory stages ahead of its use in two Phase II clinical trials, as well as a Phase I pharmacokinetic study.
