Algernon Pharmaceuticals Inc. C.AGN

Real World Math Doesn't Apply To Algernon Pharmaceuticals

[C10H12N2]

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

 

[nodaytrader]

The $20 valuation is based on comparables at Stage 1 research while the cash call occurs at Stage 2.  if Stage 2 results  mirror  Stage 1, there will be a massive increase in imputed value. There is nothing wrong with the "company math" I like this move. It gets AGN, at least partway, out of the sandbox.    

[C10H12N2]

Some people will always be morons no matter how much they're shown the way.

[nodaytrader]

Argument should never debate with invective. Over and out!

[C10H12N2]

Dude, does 2+2=4 in your world? The math doesn't lie. You can't get to a 10M dollar raise of a subsidiary valued at 20M without offering 50% of all shares. What you claim to be an argument is not an argument. It's someone trying to spin some stupid stuff off on those who are too lazy to do the correct math. Yeah, I call that demonic and/or moronic in my world of reasoning.  Roger

[C10H12N2]

My apology for the name calling. Follow-up for "arguments" sake. Let's say you are right about rhe likely explained to you by management interpretation of the SEC filing news release.  The average person reading that news release would most likely come away with the same conclusion I did regarding the math.  They already state the money will be used to include Phase 2a