Algernon Pharmaceuticals Gains Investor Confidence With New Private Placement

Algernon Pharmaceuticals Inc., a Canadian clinical-stage pharmaceutical development firm, has announced a non-brokered private placement to raise gross proceeds of $250,000. This placement (the “Offering”) will be in the form of units (the “Units”) priced at $0.12 each. Each Unit comprises one Class A common share of the Company (a “Common Share”) and one Common Share purchase warrant (a “Warrant”). Each Warrant grants the holder the right to purchase one Common Share (a “Warrant Share”) at an exercise price of $0.24 per Warrant Share, valid for two years from the issuance date (the “Expiry Date”), with a potential acceleration of the Expiry Date under certain conditions. The Offering is anticipated to close on July 20, 2024.

The Warrants are subject to an accelerated expiry if the volume-weighted average trading price of the Common Shares exceeds $0.36 for 20 consecutive trading days. In such an event, the Company may, within 10 business days, notify the Warrant holders of the new Expiry Date, which will be at least 30 days after the notice is given and a press release is issued (the “Accelerated Exercise Period”). Any Warrants not exercised by the end of the Accelerated Exercise Period will automatically expire. The Company may pay cash finder’s fees and issue finder’s warrants to eligible finders, amounting to up to eight percent of the proceeds raised and the units issued for investors introduced by the finders. The proceeds from the private placement will be used for working capital purposes.

The securities mentioned in this news release, both issued and issuable, will be subject to a statutory hold period of four months plus one day from the date of issuance, as per applicable Canadian securities laws. These securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws. Consequently, they cannot be offered or sold within the United States or to, or for the account or benefit of, “U.S. persons” (as defined in Regulation S under the U.S. Securities Act) unless they are registered under the U.S. Securities Act and applicable state securities laws, or qualify for an exemption from such registration.