Algernon Pharmaceuticals Gains Investor Confidence With New Private Placement
Algernon Pharmaceuticals announces $250K private placement with units at $0.12 each, closing July 20, 2024.
Breaking News
Jul 12, 2024
Mrudula Kulkarni

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.