Algernon Pharmaceuticals Inc (CSE:AGN) (OTCQB:AGNPF) said Tuesday that it is amending the terms of a previously announced financing to boost its proceeds to C$6 million.
Funds raised as part of the offering will be used for ongoing research and clinical trials of its lead drug Ifenprodil, a potential respiratory treatment that could be useful in patients with coronavirus, or COVID-19.
Under the revised terms, the Vancouver-based firm will issue around 17.1 million special warrants priced at C$0.35. Each special warrant is exercisable into one unit comprised of one share and one warrant at an exercise price of C$0.55 for a two-year period, subject to acceleration if the volume weighted average price its shares is over C$1 for 10 consecutive days.
Algernon is granting its agent the option to purchase up to 15% of the special warrants issued as part of the offering to cover any over-allotments.
In the event that the company does not receive a receipt for the final prospectus form regulatory authorities within a 35-day window before the closing of the offering, each unexercised special warrant will thereafter allow the shareholder to receive 1.1 unit, and an additional 0.02 of a unit following each 30-day period prior to the qualification date. All unexercised special warrants will automatically be exercised either on the day four months and one day following the closing date or the third business day after the receipt is issued for the final prospectus.
Algernon’s agent will receive a cash fee equal to 8% of gross proceeds raised from the offering and compensation options equal to 8% of the total number of special warrants sold.
The offering is expected to close by May 12.
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