Biotech clinical-stage company Algernon Pharmaceuticals Inc. (OTCQB:AGNPF) has closed its previously announced non-brokered private placement for a total of 373,900 of its units at $3.75 per share, for gross proceeds of $1,402,125.
Algernon focuses on investigating new disease applications for already-approved drugs, including naturally occurring compounds, while specifically researching compounds that have never been approved in the U.S. or Europe to avoid off-label prescription writing.
Each unit consists of one Class A common capital share and one common share purchase warrant. Each warrant will entitle the holder to acquire one common share at an exercise price of $4.25 until August 22, 2027.
Nonetheless, the warrants are subject to accelerated expiry: if the volume weighted average trading price of the common shares exceeds $12.75 for 20 consecutive trading days, the company may deliver a notice to the warrants’ holders accelerating the expiry date to one not less than 30 days following the date of such notice. Unexercised warrants would automatically expire at the end of the mentioned period.
For the closing, Algernon paid $122,850 in cash finder’s fees and issued a total of 20,480 finder’s warrants to eligible finders, which constitute non-transferable common share purchase warrants exercisable for one common share at a price of $4.125 until August 22, 2027 (and are subject to the same acceleration provision as the warrants.)
On the other hand, the securities issued and issuable in connection with the offering’s closing will be subject to a statutory hold period of four months plus a day from the date of issuance, in accordance with applicable securities legislation.
Algernon has also engaged GRA Enterprises LLC. to provide investor relations services within a consulting agreement framework.
The Major Player In The New Placement
Algernon’s largest shareholder, AlphaNorth Asset Management, has increased its ownership position by acquiring 150,000 shares, now owning (directly or indirectly) a total of 307,610 common shares, equaling a 13% equity interest increase.
“Our increased investment confirms our support for the drug pipeline they are developing as well as our strong belief in management,” said AlphaNorth CEO, Steve Palmer specifically referring to Algernon’s planned Phase 1 study of DMT for strokes, “which is a major global medical issue urgently in need of new drug treatment options.”
Algernon’s CEO Christopher J. Moreau added, “We are very pleased with this major show of support by AlphaNorth, as well as their ongoing faith in Algernon’s unique drug repurposing model and development pipeline. We continue to be very focussed on advancing our drug compounds through clinical stage testing and we look forward to continuing to update the market as we progress.”
Image by Gerd Altmann from Pixabay
