Algernon Pharmaceuticals Inc. (CSE:AGN, OTCQB:AGNPF) has announced a non-brokered private placement for gross proceeds of $1,402,125 to fund research and development programs, general and administrative expenses and for working capital purposes.
The drug re-purposing company said each unit, priced at of $3.75, will consist of one Class A common share of the company and one common share purchase warrant, exercisable within five years for one common share at a price of $4.25 per warrant share, subject to accelerated expiry.
In the event the volume weighted average trading price of the common shares exceeds $12.75 for 20 consecutive trading days, the company may, within 10 business days of the occurrence of such event, deliver a notice to the holders of the warrants accelerating the expiry date of the warrants to a date not less than 30 days following the date of such notice and the issuance of a press release by the company announcing the acceleration notice. Any unexercised warrants shall automatically expire at the end of the accelerated exercise period, it added.
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Algernon said in connection with the offering, eligible parties may receive a cash finder's fee equal to up to 8% of the gross proceeds of the units sold to subscribers introduced by the parties, and finder’s warrants to purchase that number of common shares equal to up to 4% of the units that are sold to subscribers introduced by the parties. Each finder's warrant is exercisable for one finder's warrant share at a price of $4.125 per finder's warrant share for a period of five years from the closing of the offering.
The securities issued or issuable in connection with the closing of the offering will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation.
Algernon is a drug re-purposing company that investigates safe, already approved drugs, including naturally occurring compounds, for new disease applications, moving them efficiently and safely into new human trials, developing new formulations and seeking new regulatory approvals in global markets. The company specifically investigates compounds that have never been approved in the US or Europe to avoid off-label prescription writing.
Contact the author at jon.hopkins@proactiveinvestors.com