Advancing DMT for Stroke and Traumatic Brain Injury (TBI)
Algernon NeuroScience (AGN Neuro) is a new, wholly owned private subsidiary that Algernon Pharmaceuticals has established to advance its psychedelic DMT stroke and traumatic brain injury (TBI) program.
There are more than 12.2 million new strokes each year globally, with 7.6 million (62%) of these being ischemic, meaning a clot blocks blood flow to the brain. The balance are hemorrhagic strokes where there is bleeding in the brain. There are 6.5 million people who die from stroke annually, with one in four people over the age of 25 expected to have a stroke in their lifetime. Over 63 million years of healthy life is lost each year due to ischemic stroke-related death and disability. 1
According to the National Institute of Neurological Disorders and Stroke, a TBI can be caused by a forceful bump, blow, or jolt to the head or body, or from an object that pierces the skull and enters the brain. Not all blows or jolts to the head result in a TBI. Some types of TBI can cause temporary or short-term problems with normal brain function, including problems with how the person thinks, understands, moves, communicates, and acts. More serious TBI can lead to severe and permanent disability, and even death. 2
For further information on the psychedelic DMT stroke and traumatic brain injury program please go to the AP-188 (DMT) section of this web site, and visit www.algernonneuroscience.com as well.
1Source: The World Stroke Organization (WSO)
2Source: National Institute of Neurological Disorders and Stroke
Algernon Pharmaceuticals CEO Christopher J. Moreau discusses Algernon NeuroScience and its mandate to investigate DMT for stroke and traumatic brain injury (TBI) treatment.
AGN NeuroScience Structure and Valuation
Algernon Pharmaceuticals (AGN Pharma) has valued the psychedelic DMT research program at USD $20M and has formally completed an asset transfer and trademark license agreement, transferring all DMT research program assets into AGN Neuro. AGN Pharma has also signed a management agreement with AGN Neuro to provide all day-to-day operations, as well as management of the DMT stroke and traumatic brain injury (TBI) clinical trial program.
AGN Pharma’s valuation of the DMT program was based on multiple public company comparables for a wide range of pharmaceutical research programs, including for the indication of stroke, that are in the Phase 1 clinical trial stage.
AGN Neuro has filed a Form 1-A offering statement with the U.S. Securities and Exchange Commission (the “SEC”), seeking qualification to raise up to USD $10M for AGN Neuro by offering up to 37.5% of its common shares, (including the maximum amount of bonus 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 program management costs related to the completion of a Phase 1 and Phase 2a DMT stroke study. This offering was qualified by the SEC on March 8, 2023.
AGN Neuro will likely remain a private company until it has advanced through to the completion of a Phase 2a stroke study, as well as a Phase 2a traumatic brain injury study, both of which are planned to begin in Q4 of the 2023 calendar. Based on the strength of the data from those studies, AGN Neuro will review and consider a potential direct IPO listing onto the NASDAQ at that time.
Reg A+ financings are an SEC-regulated funding mechanism allowing issuers an alternative way to access the public markets, while reducing offering costs in the process. An offering under Reg A+ allows for greater marketing and promotion efforts than are permissible while soliciting to the general public under a traditional registered offering, including marketing using online and digital platforms.
AGN Neuro has retained Issuance Inc., the leading investment direct-to-market platform for Reg A+ offerings, as well as the Dalmore Group, a broker-dealer and global expert in the primary and secondary market trading of private securities online at scale through Reg A+ registrations.
For more information on the DMT research program and the Reg A investment opportunity described above, please visit www.algernonneuroscience.com.