Algernon Announces $1M Private Placement

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

VANCOUVER, British Columbia, May 27, 2025 (GLOBE NEWSWIRE) -- Algernon Pharmaceuticals Inc. (the “Company” or “Algernon”) (CSE: AGN) (FRANKFURT: AGW0) (OTCQB: AGNPF), a Canadian healthcare and clinical stage drug development company, is pleased to announce a non-brokered private placement for gross proceeds of $1,000,000 (the “Offering”) of units of common shares (the “Common Units”) at an issue price of $0.07 per Common Unit and units of preferred shares (the “Preferred Units”) at an issue price of $0.70 per Preferred Unit. The Company expects fifty (50) percent of the Offering to be completed with Common Units and fifty (50) percent to be completed with Preferred Units.

Each Common Unit will consist of one Class A common share in the capital of the Company (a “Common Share”) and one-half Common Share purchase warrant (a “Common Warrant”). Each full Common Warrant will entitle the holder to acquire one Common Share (a “Common Warrant Share”) at an exercise price of $0.15 per Common Warrant Share for a period of 2 years from the date of issuance (the “Expiry Date”), subject to acceleration of the Expiry Date as described below.

Each Preferred Unit will consist of one preferred share in the capital of the Company (a “Preferred Share”) and one half Preferred Share purchase warrant (a “Preferred Warrant”). Each full Preferred Warrant will entitle the holder to acquire one Preferred Share (a “Preferred Warrant Share”) at an exercise price of $1.50 per Preferred Warrant Share until the Expiry Date, subject to acceleration of the Expiry Date as described below.

The Offering is expected to close in tranches on or before June 30, 2025.

The Common Warrants and Preferred Warrants (together the “Warrants”) are subject to an accelerated expiry in the event the volume weighted average trading price of the Common Shares exceeds $0.25 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 their Expiry Dates to a date that is 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 (the “Accelerated Exercise Period”). Any unexercised Warrants shall automatically expire at the end of the Accelerated Exercise Period.