Algernon Pharmaceuticals Inc. (CSE:AGN, OTCQB:AGNPF) said its wholly-owned subsidiary, Algernon NeuroScience (AGN Neuro), has qualified its Form 1-A offering statement filed with the US Securities and Exchange Commission (SEC) under a Tier II Regulation A+ offering (Reg A+).
Under the Reg A+, AGN Neuro will be offering up to 37.5% of its common shares, with majority ownership residing with Algernon Pharma. The capital raised will be used for research, development, and program management costs related to the completion of the Phase 1 DMT study currently underway as well as Phase 2a stroke and traumatic brain injury (TBI) studies.
Algernon Pharma has valued AGN Neuro’s psychedelic DMT stroke and traumatic brain injury (TBI) research program at US$20 million. The valuation of the DMT stoke and TBI program was based on multiple public company comparables for a wide range of pharmaceutical research programs, and specifically, including for the indication of stroke, that are in the Phase 1 clinical trial stage.
READ: Algernon Pharmaceuticals says unit initiates traumatic brain injury research program with DMT; appoints global TBI expert as advisor
The class A common shares will be offered at US$1 per share with a minimum investment of US$1,000 required.
Bonus shares will be issued on the following basis:
- US$15,000 Investment – 5% Bonus Shares
- US$25,000 Investment – 10% Bonus Shares
- US$100,000 Investment – 15% Bonus Shares
- US$250,000 Investment – 20% Bonus Shares
The Reg A+ offering will be marketed using online and digital platforms, which are being developed and expected to launch during the first week of May 2023. AGN Neuro’s new website is available for viewing at: https://algernonneuroscience.com.
AGN Neuro has retained Issuance Inc, the leading investment direct-to-market platform for Reg A+ offerings, as well as the Dalmore Group, broker-dealer and global expert in the primary and secondary market trading of private securities online at scale through Reg A+ registrations.
“We look forward to starting AGN Neuro’s online digital marketing campaign for investors soon,” said Christopher J. Moreau, CEO of AGN Pharma in a statement. “We believe DMT holds tremendous promise as a drug that could have a significant positive impact on the healing and recovery of brain injury victims on a global scale."
Algernon NeuroScience is a wholly owned private equity subsidiary of Algernon Pharmaceuticals and has been created to advance the company’s DMT stroke and TBI research programs.
Algernon Pharmaceuticals is a Canadian clinical-stage drug development and repurposing company investigating multiple drugs for unmet global medical needs. The company has active research programs for IPF with chronic cough, and chronic kidney disease.
Contact the author at jon.hopkins@proactiveinvestors.com