Algernon Announces Amended Terms for Private Placement and Closing of the First Tranche totaling $621,000

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VANCOUVER, British Columbia, June 30, 2025 (GLOBE NEWSWIRE) — Algernon Pharmaceuticals Inc. (the “Company” or “Algernon”) (CSE: AGN) (FRANKFURT: AGW0) (OTCQB: AGNPF), a Canadian healthcare and clinical stage drug development company, is announcing amended pricing and warrant terms for its non-brokered private placement for gross proceeds of $1,000,000 (the “Offering”) of units of common shares (the “Common
Units”) or subscription receipts (the “Subscription Receipts”) previously announced on May 27, 2025. The Company is amending the issue price to $0.06 per Common Unit from $0.07 per Common Unit and $0.60 per Subscription Receipt from $0.70 per preferred unit. The Company expects twenty-five (25) percent of the Offering to be completed with Common Units and seventy-five (75) percent to be completed with Subscription Receipts.

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Each Common Unit will consist of one Class A common share in the capital of the Company (a “Common Share”) and one-half Common Share purchase warrant (a “Common Warrant”). Each full Common Warrant will now entitle the holder to acquire one Common Share (a “Common Warrant Share”) at an exercise price of $0.15 per Common Warrant Share (the “Common Exercise Price”) for a period of twelve (12) months from the issuance date (the “Issuance Date”), after which on the first anniversary of the Issuance Date (the “First Anniversary”), the Common Exercise Price will increase to $0.25 per Common Warrant Share for a period of twelve (12) months from the First Anniversary, and on the second anniversary of the Issuance Date (the “Second Anniversary”), the Common Exercise Price will increase to $0.50 per Common Warrant Share for a period of thirty-six (36) months from the Second Anniversary.

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Each Subscription Receipt will be issued for $0.60 and each Subscription Receipt will be deemed converted into one preferred unit (a “Preferred Unit”) if certain release conditions are met by the Company within 120 days of the issuance of the Subscription Receipt or if the Release Conditions are not met, ten (10) Common Units.

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Each Preferred Unit will consist of one preferred share in the capital of the Company (a “Preferred
Share”) and one half Preferred Share purchase warrant (a “Preferred Warrant”). Each full Preferred Warrant will now entitle the holder to acquire one Preferred Share (a “Preferred Warrant Share”) at an exercise price of $1.50 per Preferred Warrant Share (the “Preferred Exercise Price”) for a period of twelve (12) months from the Issuance Date, after which on First Anniversary, the Preferred Exercise Price will increase to $2.50 per Preferred Warrant Share for a period of twelve (12) months from the First Anniversary, and on the Second Anniversary, the Preferred Exercise Price will increase to $5.00 per Preferred Warrant Share for a period of thirty-six (36) months from the Second Anniversary. 

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Additionally, the Company has closed the first tranche (the “First Tranche”) of the Offering for gross proceeds of $621,000 with the issuance of 1,035,000 Subscription Receipts.

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The Company paid cash finder’s fees pertaining to the First Tranche totaling $16,800 and will issue finders warrants upon the conversion of the Subscription Receipts, to eligible finders for investors introduced to the Company by the eligible finder.