Real World Math Doesn't Apply To Algernon Pharmaceuticals The math below does not add up. If you have a company that you value at 20M and you hope to raise 10M, the only way you get there is by offering 50% of the company shares. The valuation of the company would need to be 26.7M to get to 10M at 37.5% of common shares.
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“The Company has valued the psychedelic DMT research program at USD $20M and has formally completed an asset transfer and trademark license agreement…
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….”
https://www.globenewswire.com/news-release/2023/01/03/2581994/0/en/Algernon-Pharmaceuticals-Forms-Private-Subsidiary-to-Advance-Company-s-Psychedelic-DMT-Stroke-Program-Files-Form-1-A-Offering-Statement-with-U-S-SEC-for-Regulation-A-Offering.html