Algernon Pharmaceuticals (AGN Pharma) has established Algernon NeuroScience (AGN Neuro), a new wholly-owned private subsidiary of AGN Pharma, to advance its DMT stroke programme.
The Canadian pharmaceutical development company is currently carrying out a Phase 1 clinical study of an intravenous formulation of DMT – AP-188 – in the Netherlands.
The trial is being conducted at the Centre for Human Drug Research (CHDR) in Leiden and is aiming to identify the safety, tolerability, and pharmacokinetics of DMT when administered as an intravenous bolus followed by prolonged infusion, for durations which, the company states, have never been studied clinically.
Algernon has valued its psychedelic DMT research programme at USD $20M and has now formally completed an asset transfer and trademark license agreement, transferring all DMT research programme assets into AGN Neuro. It has also signed a management agreement with AGN Neuro to provide all day-to-day operations, as well as management of the DMT stroke clinical trial programme.
Aims to raise $10 million
AGN Neuro has filed a Form 1-A offering statement with the U.S. Securities and Exchange Commission (SEC), seeking qualification to raise up to USD $10 million for AGN Neuro by offering up to 37.5% of its common shares, with majority ownership residing with AGN Pharma, under a Tier II Regulation A+ offering (Reg A+).
The capital raised will be used for research, development, and programme management costs related to the completion of a Phase 1 and Phase 2a DMT stroke study.
CEO of AGN Pharma, Christopher J. Moreau, commented: “Reg A+ financings continue to be a very successful way of raising capital by allowing the innovative online and digital marketing of securities to the general public on a global scale.
“By creating AGN Neuro with the sole focus of advancing the DMT stroke research programme through its future clinical trials, we are working to create an exciting new investment vehicle with the goal of enhancing shareholder value in the process.”
The company has stated that AGN Neuro will remain a private company until it has advanced through to the completion of a Phase 2a stroke study, which is planned to begin in Q4 of the 2023 calendar.
Based on the strength of the data from that study, AGN Neuro will review and consider a potential direct IPO listing on the NASDAQ at that time.
