- Algernon (AGN) has formed a private subsidiary to advance its psychedelic DMT stroke program
- The subsidiary, Algernon NeuroScience, has filed a Form 1-A offering statement with the U.S. SEC to raise up to US$10 million by offering up to 37.5 per cent of its common shares
- Algernon NeuroScience will consider a direct IPO on the NASDAQ contingent on results from a Phase 2a stroke study, which is planned to begin in Q4 2023
- Algernon Pharmaceuticals is a Canadian clinical-stage drug development and repurposing company
- Algernon (AGN) is up by 7.94 per cent, trading at $2.31 per share
Algernon (AGN) has formed a private subsidiary to advance its psychedelic DMT stroke program.
The subsidiary, Algernon NeuroScience (AGN Neuro), will hold and manage all assets and trademarks associated with the US$20 million psychedelic DMT research program. The parties have signed asset and management agreements to this effect.
The US$20 million valuation is based on multiple public company comparables for a wide range of pharmaceutical research programs, including for the indication of stroke, which is in Phase 1 clinical trial stage.
AGN Neuro has filed a Form 1-A offering statement with the U.S. SEC to raise up to US$10 million by offering up to 37.5 per cent of its common shares under a Tier II Regulation A+ offering. The majority ownership would remain with Algernon Pharmaceuticals.
Reg A+ financings are an SEC-regulated funding mechanism offering access to public markets with greater marketing and promotional flexibility compared to traditional registered offerings.
AGN Neuro intends to use the capital for research, development and program management costs related to the completion of Phase 1 and Phase 2a DMT stroke study.
The subsidiary will consider a direct IPO on the NASDAQ contingent on results from the Phase 2a stroke study, which is planned to begin in Q4 2023.
“Reg A+ financings continue to be a very successful way of raising capital by allowing the innovative online and digital marketing of securities to the general public on a global scale,” stated Christopher J. Moreau, CEO of Algernon Pharmaceuticals. “By creating AGN Neuro with the sole focus of advancing the DMT stroke research program through its future clinical trials, we are working to create an exciting new investment vehicle with the goal of enhancing shareholder value in the process.”
Algernon Pharmaceuticals is a Canadian clinical-stage drug development and repurposing company addressing global unmet medical needs, including stroke, chronic kidney disease and IPF with chronic cough.
Algernon (AGN) is up by 7.94 per cent, trading at $2.31 per share as of 11:36 am ET.
