Algernon Pharmaceuticals Announces Receipt of CDN $450K Cash Refund from Australian Research Program
VANCOUVER, British Columbia, Sept. 21, 2022 (GLOBE NEWSWIRE) -- Algernon Pharmaceuticals Inc. (CSE: AGN) (FRANKFURT: AGW) (OTCQB: AGNPF) (the “Company” or “Algernon”), a Canadian clinical stage pharmaceutical development company, is pleased to announce that it has recently received a cash payment of approximately CDN $450K from a refundable tax credit program from its clinical research work in Australia.
“Algernon tries to conduct as much of its clinical research in Australia as possible because of the 43.5% refundable R&D tax credit program,” said Christopher J. Moreau, CEO of Algernon. “This brings our total cash refund received to date to over CDN $3.0M, which has been an important part of Algernon’s capital efficient business model.”
Additionally, the Company announces changes to the warrants that it issued on July 4, 2022, pursuant to its public offering of units (the “July 2022 Offering”) as a result of the anti-dilution provisions contained in the warrants. The July 2022 Offering consisted of one common share and one warrant (a “Warrant”). Upon issuance, the Warrants were exercisable at a price of $4.70 per Warrant and included anti-dilution provisions in the case of a down-round financing during the five-year term of the Warrants (a “Dilutive Issuance”) to reduce the exercise price of the Warrants and increase the number of shares issuable thereunder, if common shares are sold or issued for a consideration per share less than the Warrant exercise price (subject to certain exceptions).
On August 22, 2022, the Company closed a non-brokered private placement (the “August 2022 Offering”) in the amount of 373,900 units of the Company at a price of $3.75 per unit. The August 2022 Offering resulted in a Dilutive Issuance and the exercise price of the Warrants issued in the July 2022 Offering has been reduced to $3.75 per share and the number of shares issuable under each Warrant has been increased such that the aggregate exercise price payable after taking into account the decrease in the exercise price shall be equal to the aggregate exercise price prior to the adjustment.
About Algernon Pharmaceuticals Inc.
Algernon is a Canadian clinical stage drug development company investigating multiple drugs with global unmet medical needs. Algernon has active research programs for IPF with chronic cough, chronic kidney disease, and a psychedelic program investigating a proprietary form of DMT for stroke.
Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY DISCLAIMER STATEMENT: No Securities Exchange has reviewed nor accepts responsibility for the adequacy or accuracy of the content of this news release. This news release contains forward-looking statements relating to product development, licensing, commercialization and regulatory compliance issues and other statements that are not historical facts. Forward-looking statements are often identified by terms such as “will”, “may”, “should”, “anticipate”, “expects” and similar expressions. All statements other than statements of historical fact, included in this release are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations include the failure to satisfy the conditions of the relevant securities exchange(s) and other risks detailed from time to time in the filings made by the Company with securities regulations. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will only update or revise publicly any of the included forward-looking statements as expressly required by applicable law.
Released September 21, 2022