Algernon Pharmaceuticals Announces $150,000 Private Placement for Working Capital

LOS ANGELES- Algernon Pharmaceuticals Inc., a Canadian clinical stage pharmaceutical development company, has announced a non-brokered private placement aiming to raise $150,000. The offering comprises units priced at $0.075 each, with each unit consisting of one Class A common share in the company and one common share purchase warrant. These warrants allow the holder to acquire additional common shares at $0.20 each for two years from the date of issuance, with provisions for an accelerated expiry.

The accelerated expiry clause is triggered if the average trading price of the common shares exceeds $0.40 for 20 consecutive trading days. In such an event, Algernon Pharmaceuticals can expedite the expiry date to 30 days following the announcement, provided a notice is delivered to warrant holders within 10 business days of the price surge.

Algernon Pharmaceuticals also reserves the right to pay finder’s fees and warrants to eligible finders. These fees can amount to up to eight percent of the proceeds raised and units issued through investors introduced by these finders.

The company intends to use the proceeds from this private placement primarily for working capital purposes. This move signifies Algernon’s ongoing efforts to strengthen its financial position and support its business operations.

In compliance with Canadian securities legislation, the securities issued and issuable in this offering will be subject to a statutory hold period of four months plus one day from the date of issuance. Additionally, these securities have not been registered under the United States Securities Act of 1933, as amended, nor any state securities laws, and therefore cannot be offered or sold within the United States or to U.S. persons without registration or an exemption from such registration requirements.

Algernon Pharmaceuticals is actively engaged in researching and developing drugs for various unmet medical needs. The company has ongoing research programs focused on chronic cough and chronic kidney disease. Furthermore, through its private subsidiary, Algernon NeuroScience, it is advancing a psychedelic program investigating a proprietary form of DMT for applications in stroke and traumatic brain injury treatment. This placement is a strategic step in bolstering Algernon’s financial capacity to continue its diverse and significant drug development initiatives.