Algernon Pharmaceuticals Inc (AGNPF)

[Money $hot]

Of note:

www.streetwisereports.com/article/2021/12/29/co-looks-to-us-for-help-fighting-strokes.html

Moreau said uplisting on the Nasdaq should also provide the company better access to capital for ongoing research and development programs. He pointed to another Canadian company, XORTX Therapeutics Inc.

(XTRX:NASDAQ), as an example of a pharmaceutical company that successfully made the jump and reached a broader investor audience when it was uplisted in October 2021.

XORTX, which develops therapies to treat progressive kidney disease, joined the Nasdaq in October and raised $12 million.

"They now have a meaningful war chest from which they can prosecute their research and development programs," Moreau told Streetwise.

www.xortx.com/news/press-releases/detail/85/xortx-provides-corporate-update

On October 15, 2021, the Company closed its initial public offering in the US with US$12 million contemporaneous with the NASDAQ listing. The financing was led by A.G.P. / Alliance Global Partners and attracted participation from key biopharma institutional investors. The underwritten public offering of 2,906,000 units, with each unit consisting of one common share, no par value, and one warrant to purchase one common share at a public offering price of US$4.13 per Unit.

Algernon Pharmaceuticals Inc.

W. Bruce Rowlands
Algernon has appointed W. Bruce Rowlands to its Business Advisory Board. Mr. Rowlands has extensive public company experience over the last 25 years and recently was the Chairman of Xortx Therapeutics, a Canadian Biotech company focused in kidney disease on whose board he served for almost 8 years. He also served as Vice President & Director of Dominick & Dominick Securities Canada, SVP Lorus Therapeutics, now Aptose Bioscience, and Chairman & CEO Eurocontrol Technics Group Inc.

Christopher Moreau wants to make uplisting to Nasdaq sound so sexy. The fact that Moreau pulled XORTX into its Nasdaq uplisting saga and appointed Xortx ex- Chairman of the Board goes a long way towards getting a full grasp of what Moreau is up to with the numbers for a capital raise.

Xortx raised $12 Million USD @ $4.13 share price + warrant.

Algernon wants to raise $12 Million CAD equal to $9.5 Million USD.

Thus, I will place my wager on the current share price around $4 USD will be the public offering price if Algernon ever receives the approval to list on Nasdaq.

Management will need to sell 2,375,000 units (share + warrant) to raise $9.5 million USD.

However, I believe they will attempt to raise at least $10 Million USD in an over prescribed fire sale.

Thus, Management will need to sell 2,500,000 units (share + warrant) to raise $10 Million USD.

The Outstanding Shares will balloon from 1,674,868 Million Shares to 4,174,868 Million Outstanding Shares. Add 2,500,000 warrants to the current warrant total.

THAT'S A 150% INCREASE OF OUTSTANDING SHARES

As you can see it will be hell moving forward as it's been hell from the very beginning.

Break even for most is around $30 USD.

To reach $30 USD with 4,174,868 Outstanding Shares - Algernon would need a Market Cap of $125 Million USD.

Xortx is currently trading on Nasdaq for $1.26 USD per share.

Xortx Market Cap is $17 Million USD.

I'm seeing no exit out of here without receiving 3rd degree burns.

My $30 exit strategy is unlikely.

I will not be sticking around for a real world Phase 2 clinical trial data readout powered for statistical significance.

That type of readout will likely not happen until sometime in 2024 potentially with DMT.

All bets are off for a statistically significant data readout for Chronic Cough as management can't figure out if they will run a trial in the USA or Australia or some other 2nd world country that will bog down progress indefinitely. Unlike taking a page from Bellus health and conducting USA clinical trials and getting data results in less than one year with hundreds of enrolled patients.

Moreau spouts about the best companies out there but follows the worst examples. Xortx is likely the worst example that will come to fruition for Algernon Pharmaceuticals.

Big Dreamers aligned with Small Thinkers at HQ.

M$