Algernon Pharmaceuticals Completes Private Placement

VANCOUVER, British Columbia, Aug. 02, 2024 – Algernon Pharmaceuticals Inc., a Canadian firm engaged in clinical-stage pharmaceutical development, has announced the completion of its non-brokered private placement. The private placement, which was initially brought to public attention on July 11, 2024, and updated on July 31, 2024, has successfully generated gross proceeds amounting to $408,000. Units were issued at a price of $0.12 each.

Insiders of Algernon Pharmaceuticals also participated in this offering, contributing $77,760. Their involvement qualifies as a "related party transaction" under Multilateral Instrument 61-101 (MI 61-101), which aims to protect minority shareholders in special transactions. However, Algernon has leveraged exemptions from the valuation and minority shareholder approval stipulations outlined in MI 61-101's sections 5.5(a) and 5.7(1)(a). These exemptions apply because neither the market value of the shares acquired by insiders nor the price paid by them for the units surpassed 25% of the company's market capitalization.

The company did not issue a material change report at least 21 days before closing the private placement. It deemed this approach reasonable under the circumstances, given that the specifics regarding insider participation were finalized only shortly before the offering's completion. Algernon wished to expedite the process.

Additionally, the company disbursed cash finder's fees amounting to $5,376 and granted 44,800 finder's warrants to eligible finders who introduced investors to the company. The funds raised through this private placement will be utilized for working capital purposes.

Algernon Pharmaceuticals is engaged in clinical-stage drug development, addressing unmet medical needs globally. The company operates a private subsidiary, Algernon NeuroScience, which focuses on a psychedelic program exploring a proprietary form of DMT for treating stroke and traumatic brain injury. Algernon is also conducting research for chronic kidney disease.

Recently, Algernon has concluded an agreement with Seyltx Inc., a privately-owned U.S. drug development company. This deal involves the sale of Algernon's Ifenprodil research program for $2 million in cash and a 20% equity position in Seyltx.

Algernon Pharmaceuticals continues to push the boundaries in pharmaceutical development, seeking innovative solutions for critical health challenges.

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