Algernon Pharmaceuticals Inc (AGNPF)

[shell3]

13. SUBSEQUENT EVENTS

Subsequent to May 31, 2023


On July 26, 2023, the Company issued to Maxim Group LLC (“Maxim”) 200,000 common shares at a deemed issue price of $0.22, being the closing price of the common shares on the CSE on July 13, 2023, as initial compensation for entering into an engagement letter (the “Engagement Letter”) pursuant to which Maxim will provide financial advisory and investment banking services, and assist in identifying and evaluating potential M&A and strategic opportunities, including the potential spin-off of the Company's Ifenprodil chronic cough research program. In connection with entering into the Engagement Letter, the Company may be obligated to issue up to an additional 200,000 Common Shares to Maxim in certain circumstances. The Company may also be obligated to pay Maxim a success fee upon the consummation of a successful transaction.

On July 27, 2023, the Company closed a non-brokered private placement for gross proceeds of $205,000 (the “Offering”) of units (the “July 2023 Units”) at an issue price of $0.20 per July 2023 Unit. Each July 2023 Unit will consist of one common share in the capital of the Company and one common share purchase warrant (a “July 2023 Warrant”). Each July 2023 Warrant will entitle the holder to acquire one common share (a “July 2023 Warrant Share”) at an exercise price of $0.25 per July 2023 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.

The July 2023 Warrants are subject to accelerated expiry in the event the volume weighted average trading price of the common shares exceeds $0.50 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 July 2023 Warrants accelerating the Expiry Date of the July 2023 Warrants 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 July 2023 Warrants shall automatically expire at the end of the Accelerated Exercise Period. The Company will use the proceeds of the private placement for working capital purposes.

JMO

It appears their dumping what they can for cash to stay alive - $400,000 cash on hand May 31st, 2023 and now $205,000 for shares sold in placement makes $605,000 and burn rate a quarter is up to $1M now - All paid with more shares to insiders or Brokers doing placements with more shares

Here’s the latest MD&A

https://webfiles.thecse.com/Algernon_-_Financial_Statements_-_May_31_2023.pdf?3BDnofPUaIMafoRlE30llhlwsGG5Rhat