Algernon Health (CSE:AGN, OTCQB:AGNPF) announced that it plans to raise up to $500,000 through a non-brokered private placement of units priced at $0.07 each.
The proceeds from the financing will be used to advance the company’s Alzheimer’s disease research program, including preparations to open its first US brain-specific neuroimaging clinic.
Additional funds will go toward general administrative expenses and working capital.
Under the offering, each unit will include one Class A share and one-half of a share purchase warrant.
Every full warrant will allow the holder to acquire an additional share at an exercise price of $0.15 per share for 12 months from the date of issuance.
The exercise price will rise to $0.25 per share after one year and to $0.50 per share after two years, with the warrants remaining exercisable for up to three years from the second anniversary of issuance.
The company noted that the warrant terms include an acceleration clause. If Algernon’s shares trade at or above $0.20 on the Canadian Securities Exchange for 20 consecutive trading days prior to the first anniversary of issuance, the exercise price will increase to $0.25.
The offering is expected to close in tranches by November 30, 2025.
Algernon said it may pay finders’ fees of up to 8% in cash and issue finders’ warrants in connection with the placement.