Algernon Announces Amended Terms for Private Placement and Closing of the First Tranche totaling $621,000

Core Viewpoint - Algernon Pharmaceuticals Inc. is amending the pricing and terms of its non-brokered private placement to raise gross proceeds of $1,000,000, adjusting the issue price for Common Units and Subscription Receipts [1][2]. Group 1: Offering Details - The amended issue price for Common Units is set at $0.06, down from $0.07, and for Subscription Receipts at $0.60, down from $0.70 [1]. - The Company anticipates that 25% of the Offering will be completed with Common Units and 75% with Subscription Receipts [1]. - The first tranche of the Offering has closed, raising gross proceeds of $621,000 through the issuance of 1,035,000 Subscription Receipts [5]. Group 2: Warrant Terms - Each Common Unit consists of one Common Share and one-half Common Warrant, with the full Common Warrant allowing the purchase of one Common Share at an initial exercise price of $0.15 for 12 months [2]. - The exercise price for Common Warrants will increase to $0.25 after the first anniversary and to $0.50 after the second anniversary [2][7]. - Each Preferred Unit consists of one Preferred Share and one-half Preferred Warrant, with an initial exercise price of $1.50 for 12 months, increasing to $2.50 and then to $5.00 in subsequent years [4][7]. Group 3: Use of Proceeds - Proceeds from the private placement will be used to advance the new Alzheimer's Disease program, cover general and administrative expenses, and for working capital [6]. - The Company plans to open its first U.S. Alzheimer's Disease clinic in Q4 2025 [6]. Group 4: Shareholder Approval and Dividends - The Company will expedite its annual meeting to seek shareholder approval for the issuance of Preferred Shares by the end of October 2025 [8]. - Preferred Shares will include a 10% annual dividend payable in Common or Preferred Shares at the discretion of the board [8].