Preheat the oven to 400 degrees F. Unroll the crescent dough and separate the triangles along the perforated lines. Cut the triangles in half lengthwise so that you have 16 triangles.
Overlap 2 pieces of parchment to make a 24-inch-long piece. Arrange the crescent triangles lengthwise in a long row on top of the parchment, with the pointy ends upright and the flat ends overlapping just slightly (the row should be as long as the parchment paper). Gently press the overlapping pieces of dough together so to seal.
Spread the pizza sauce over the thickest part of the strip of dough (about 1 1/2-inches). Sprinkle the cheese over the sauce and top with a layer of pepperoni.
Fold the pointy ends of the dough over top of the pepperoni tucking them under the dough to enclose the filling. Gently curve the top end of the dough to the left to make a candy cane shape that is the length of the back of a baking sheet. Transfer the parchment onto the back of a baking sheet. Sprinkle the sesame seeds on top of the dough. Bake until the dough is golden brown and the cheese is melted, 8 to 10 minutes. Tuck the basil leaves into the candy cane to make a bow. Serve with more sauce for dipping.
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