Splash Beverage Group (SBEV) has entered into a licensing agreement with Argent BioPharma Limited (RGT) for CannEpil, a cannabinoid-based epilepsy therapy.
The deal grants Splash exclusive worldwide rights to develop and commercialize CannEpil for drug-resistant epilepsy, refractory epilepsy, seizure disorders, and related neurological conditions.
The licensing agreement runs for an initial 20-year term and includes rights to sublicense the technology to strategic pharmaceutical partners globally.
As part of the transaction, Splash secured a $1 million strategic investment commitment from C/M Capital Partners to support regulatory and clinical development efforts.
Mercer Street Global Opportunity Fund, an affiliate of C/M Capital, agreed to forgive approximately $5 million of Argent BioPharma debt as part of the broader deal structure.
Splash will issue $5.5 million of preferred equity as consideration for the license, while Argent BioPharma will receive a 15% royalty on net revenue from worldwide CannEpil sales.
CannEpil is a pharmaceutical-grade cannabinoid therapy already approved for distribution in Ireland, the United Kingdom, Germany, and Australia across regulated patient-access programs.
The treatment is manufactured under European Union Good Manufacturing Practice standards, giving it a credible foundation for potential broader regulatory approval in additional markets.
Splash highlighted that approximately 30% of epilepsy patients worldwide have drug-resistant epilepsy and continue to experience uncontrolled seizures despite existing available treatments.
The company said it has initiated the FDA pre-IND process for CannEpil and has been assigned an Investigational New Drug number to support future U.S. development plans.
The move signals an ambitious strategic pivot for Splash Beverage, a company historically associated with consumer beverage brands rather than pharmaceutical development.
Investors reacted sharply to the news, with SBEV shares falling more than 30% in pre-market trading after the stock closed at $0.2081 on Monday.
