Algernon Pharmaceuticals Inc (CSE: AGN) (OTCQB:AGNPF) announced Wednesday it closed a private placement offering of special warrants that raised nearly C$7 million.
The Vancouver-based firm issued 19,605,285 special warrants for $0.35 each and upsized the offering from an initial $5 million target. Gross proceeds totaled $6,861,849.
The money will be used for ongoing research, clinical trials, working capital and general corporate purposes.
READ: Algernon Pharmaceuticals receives first ethics approval for Phase 2 Ifenprodil IPF and Chronic Cough Human Study in Australia
Each special warrant consists of one common share and one common share purchase warrant, the latter entitling its holder to another common share at an exercise price of $0.55 for a period of two years.
Algernon, based in Vancouver, is a drug repurposing company that investigates safe, already approved drugs for new disease applications. The company has filed new intellectual property rights around the world for Ifenprodil for the treatment of respiratory diseases and is working to develop a proprietary injectible, slow-release formulation.
In coronavirus (COVID-19) patients, the company believes Ifenprodil can reduce the infiltration of neutrophils and T-cells into the lungs where they can each release glutamate and cytokines, respectively. The latter can result in the highly problematic cytokine storm that contributes to the loss of lung function and ultimately death as has been reported in COVID-19 infected patients.
Algernon has received Health Canada approval to proceed with Phase 2b/3 of a multinational study looking at Ifenprodil, which could be used in the treatment of COVID-19.
Contact the author: [email protected]
Follow him on Twitter @PatrickMGraham