Alzamend Neuro Announces Initial Closing of Private Placement

Alzamend Neuro, Inc. (Nasdaq: ALZN) (“Alzamend”), a clinical-stage biopharmaceutical company focused on developing novel products for the treatment of Alzheimer’s disease (“Alzheimer’s”), bipolar disorder (“BD”), major depressive disorder (“MDD”) and post-traumatic stress disorder (“PTSD”), announced today that it closed upon the initial tranche of a private placement (the “Private Offering”) pursuant to the Securities Purchase Agreement (the “Agreement”) with an institutional investor (the “Investor”).

On May 10, 2024, the Investor purchased 50 shares of Alzamend’s Series A Convertible Preferred Stock (the “Preferred Shares”) for $500,000 in the Private Offering, of which $311,356.16 (which included accrued but unpaid interest) was paid by the Investor by the surrender for cancellation of a term note issued by the Company to the Purchaser on April 29, 2024 in the principal face amount of $310,000. Concurrently with the initial closing of the Offering, the Investor purchased an additional 50 Preferred Shares in a registered direct offering for $500,000 (the “Registered Direct Offering”). The Investor also received warrants to purchase 800,000 shares of Alzamend common stock in the Private Offering.

Pursuant to the Agreement, the Investor agreed to purchase up to $25 million Preferred Shares, of which $500,000 were in the Registered Direct Offering, and up to $24.5 million will be purchased in the Private Offering, of which $1.5 million will be upon filing of a resale registration statement (the “Registration Statement”), $2.5 million within 30 days after effectiveness of the Registration Statement, $2.0 million within 60 days after effectiveness of the Registration Statement and the execution of a partnership agreement with a nationally renowned research facility for a clinical trial, and $1.0 million on each monthly anniversary of the effectiveness of the Registration Statement. In addition, the Investor will receive warrants to purchase an aggregate of 20 million shares of Alzamend common stock if the full amount of the Preferred Shares are purchased.

“This closing, together with completion of the Private Offering, will help us further our clinical trials,” said Stephan Jackman, CEO of Alzamend. “We are working diligently towards completing the next milestone. If we can develop a next-generation lithium product that would not require therapeutic drug monitoring, it would constitute a major improvement over current lithium-based treatments and positively impact the 43.5 million Americans afflicted with Alzheimer’s, BD, MDD and PTSD. Moreover, this funding will enable us to continue our Phase I/IIA safety/tolerability/efficacy clinical trial of our immunotherapeutic vaccine, a potential cure for Alzheimer’s.”