(RTTNews) – Splash Beverage Group, Inc. (SBEV) on Tuesday said it has entered into a licensing agreement with Argent BioPharma Limited (RGT) for CannEpil, a cannabinoid-based therapy being developed for the treatment of drug-resistant epilepsy.
Under the agreement, Splash has acquired exclusive worldwide rights to develop and sell CannEpil for drug-resistant epilepsy, refractory epilepsy, seizure disorders, and related neurological conditions. The license runs for an initial 20-year term and includes rights to sublicense the technology to strategic pharmaceutical partners.
As part of the transaction, Splash secured a $1 million strategic investment commitment from C/M Capital Partners to support regulatory and clinical development.
Additionally, Mercer Street Global Opportunity Fund, an affiliate of C/M Capital, agreed to forgive about $5 million of Argent BioPharma debt, while Splash will issue $5.5 million of preferred equity as consideration for the license. Argent BioPharma will also receive a 15% royalty on net revenue from worldwide sales of CannEpil.
CannEpil is a pharmaceutical-grade cannabinoid therapy that has been approved for distribution in several international markets, including Ireland, the United Kingdom, Germany, and Australia. The treatment is manufactured under European Union Good Manufacturing Practice (EU-GMP) standards and has been used through regulated patient-access programs.
Splash said the therapy addresses a significant unmet need, as approximately 30% of epilepsy patients worldwide have drug-resistant epilepsy and continue to experience uncontrolled seizures despite available treatments.
The company said it has initiated the FDA pre-IND process for CannEpil and has been assigned an Investigational New Drug (IND) number to support future U.S. development plans.
Splash Beverage shares fell more than 30% in pre-market trading after closing at $0.2081 on Monday.
