Algernon Health raises $500,000 in private placement

Algernon Health Inc. (CSE: AGN) (FRANKFURT: AGW0) (OTCQB: AGNPF) announced a non-brokered private placement for gross proceeds of $500,000. The Vancouver-based healthcare company will issue units at $0.07 per unit.

Each unit consists of one Class A common share and one-half common share purchase warrant. The full warrants allow holders to acquire common shares at $0.15 per share for 12 months from issuance, increasing to $0.25 per share for the following 12 months, then to $0.50 per share for 36 months thereafter.

The warrants include an acceleration clause. If common shares trade at $0.20 or higher on the Canadian Securities Exchange for 20 consecutive trading days before the first anniversary, the exercise price will increase to $0.25 per share following 30 days written notice to warrant holders.

The offering is expected to close in tranches by November 30, 2025. The company may pay cash finder's fees and issue finder's warrants up to eight percent of proceeds raised and units issued.

Algernon will use proceeds to advance its Alzheimer's Disease program toward opening its first U.S. brain-specific neuroimaging clinic, general and administrative expenses, and working capital.

The company also announced the conversion of 1,268,334 subscription receipts into Series 1 preferred shares and 634,167 preferred share warrants from a July 24, 2025 private placement. An additional 450,000 preferred shares and warrants were issued relating to a May 22, 2025 acquisition.

Series 1 Preferred Shares carry a 10 percent annual dividend payable in common or preferred shares at the board's discretion. Each preferred share converts into 10 Class A common shares and carries one vote.

The securities are subject to a four-month-plus-one-day statutory hold period under Canadian securities legislation, according to the company's press release.

You May Also Be Interested In