- Algernon Pharmaceuticals (AGN) recently received a cash payment of about C$450,000 from a refundable tax credit program for its clinical research work in Australia
- The company has also announced changes to the warrants that it issued on July 4, 2022, in accordance with its public offering of units as a result of the anti-dilution provisions contained in the warrants
- Algernon Pharmaceuticals Inc. is a Canadian clinical stage drug development company investigating multiple drugs with global unmet medical needs
- Algernon Pharmaceuticals Inc. opened trading at $5.70 per share
Algernon Pharmaceuticals (AGN) recently received approximately C$450,000 from a refundable tax credit program for its clinical research work in Australia.
“Algernon tries to conduct as much of its clinical research in Australia as possible because of the 43.5 per cent refundable R&D tax credit program,” stated Christopher J. Moreau, CEO of Algernon.
“This brings our total cash refund received to date to over $3.0M, which has been an important part of Algernon’s capital efficient business model,” he added.
The company has also announced changes to the warrants that it issued on July 4, 2022, in accordance with its public offering of units as a result of the anti-dilution provisions contained in the warrants.
The July 2022 offering consisted of one common share and one warrant.
Upon issuance, the warrants were exercisable at a price of $4.70 per warrant and included anti-dilution provisions in the case of down-round financing during the five-year term of the warrants.
This is to reduce the exercise price of the warrants and increase the number of shares issuable thereunder if common shares are sold or issued for a consideration per share less than the warrant exercise price (subject to certain exceptions).
On August 22, 2022, the company closed a non-brokered private placement in the amount of 373,900 units of the company at a price of $3.75 per unit.
The August 2022 offering resulted in a dilutive issuance, and the exercise price of the warrants issued in the July 2022 offering has been reduced to $3.75 per share, and the number of shares issuable under each warrant has been increased.
As a result, the aggregate exercise price payable after taking into account the decrease in the exercise price shall be equal to the aggregate exercise price prior to the adjustment.
Algernon Pharmaceuticals Inc. is a Canadian clinical stage drug development company investigating multiple drugs with global unmet medical needs.
Algernon Pharmaceuticals Inc. opened trading at $5.70 per share.
