In This Article:
VANCOUVER, British Columbia, March 05, 2021 (GLOBE NEWSWIRE) -- Algernon Pharmaceuticals Inc. (CSE: AGN) (FRANKFURT: AGW) (OTCQB: AGNPF) (the “Company” or “Algernon”) a clinical stage pharmaceutical development company is pleased to announce that it has increased and completed its previously announced non-brokered private placement of units (the "Units"), and has issued an aggregate of 11,260,040 Units at the price of CDN $0.25 per Unit, raising gross proceeds of CDN $2,815,010 (the “Offering”).
Each Unit is comprised of one Class A common share (a “Share”) and one Share purchase warrant. Each whole warrant will entitle the holder to acquire one additional Share at a price of CDN $0.40 per Share until March 5, 2023 (the “Expiry Date”).
At any time after July 5, 2021 and prior to the Expiry Date, the Warrants are subject to accelerated expiry in the event the daily volume weighted average trading price of the Common Shares equals or exceeds CAD $0.80 on the Canadian Securities Exchange (the “Exchange”) (or such other exchange on which the Common Shares may be traded), for ten (10) consecutive trading days (the “Triggering Event”), in which case, the Company may accelerate the expiry date of the Warrants by giving notice via news release within ten (10) days of the Triggering Event to the holders thereof and, in such case, the Warrants will expire on the 30th day after the date on which the news release is disseminated by the Company.
In connection with the Offering, the Company has paid cash commissions in the aggregate amount of CDN $161,400, being 8% of the aggregate proceeds raised from the sale of Units to purchasers introduced by eligible finders. In addition, the Company has issued 645,600 finder’s warrants (the “Finders’ Warrants”), being 8% of the number of Units sold under the Offering to purchasers introduced by such finders. Each Finders’ Warrant entitles the holder to purchase one Unit at a price of CDN $0.40 per Unit until March 5 2023.
All securities issued in connection with the Offering are subject to a statutory hold period of four months, expiring July 5, 2021 in accordance with applicable securities legislation. The net proceeds of the Offering will be used to fund the Company’s general corporate purposes.
About Algernon Pharmaceuticals Inc.
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. Algernon specifically investigates compounds that have never been approved in the U.S. or Europe to avoid off label prescription writing.