Algernon Pharmaceuticals Announces Approval of Preferred Share Class

09/19/2025 – 04:39 PM

VANCOUVER, British Columbia, Sept. 19, 2025 (GLOBE NEWSWIRE) — Algernon Pharmaceuticals Inc. (CSE: AGN) (FRANKFURT: AGW0) (OTCQB: AGNPF), a Canadian healthcare company, is making strategic moves to expand its focus beyond traditional pharmaceutical development into the burgeoning field of Alzheimer’s disease diagnostics and neuroimaging. Announced at its annual and special meeting of shareholders, a key resolution to alter the company’s authorized share structure, allowing for an unlimited number of preferred shares, was met with overwhelming approval, garnering over 93% of the vote. This decision sets the stage for significant capital allocation and strategic business realignment.

The approved Series 1 Preferred Shares are designed to attract investment with a 10% annual dividend, payable at the discretion of the Board in either Common or Preferred Shares. Crucially, these are convertible into Common Shares at a rate of ten Common Shares per Preferred Share, without any additional consideration required by the holder. This feature offers investors a compelling blend of income and potential capital appreciation.

Following the shareholder nod, Algernon is set to issue 450,000 Preferred Shares and an equal number of Preferred Warrants linked to an acquisition completed in May 2025. Furthermore, 1,268,334 Preferred Shares and 634,167 Preferred Warrants will be issued connected to a private placement of subscription receipts that closed in July 2025. These financial maneuvers provide Algernon with enhanced financial flexibility to pursue its strategic initiatives.

The company also confirmed the election of its board of directors. The roster of elected directors, namely Harry J.F. Bloomfield KC, Christopher J. Moreau, Dr. Raj Attariwala, Dr. Mark Williams and U.S. Ambassador (Rtd) Howard Gutman, received more than 95% approval, signaling robust shareholder confidence in the company’s leadership.

Perhaps the most significant development is Algernon’s planned rebranding to Algernon Health Inc. This name change reflects the company’s increasingly prominent position in the Alzheimer’s disease diagnostic market, underscored by its intention to establish specialized neuroimaging clinics throughout North America as a core business. This pivot represents a strategic effort to diversify revenue streams and capture a larger share of the growing market for early Alzheimer’s detection and management.

Algernon’s move into Alzheimer’s diagnostics aligns with growing investor interest in companies leveraging technology and innovative approaches to tackle neurodegenerative diseases. The company’s strategy capitalizes on the unmet need for improved diagnostic tools in Alzheimer’s, where early detection can significantly impact patient outcomes. By integrating diagnostic services with its pharmaceutical development pipeline, Algernon aims to create a synergistic business model that can generate value across multiple stages of disease management.

About Algernon Pharmaceuticals

Algernon Pharmaceuticals is a Canadian healthcare company focused on the provision of brain specific PET scanning services through a planned network of new clinics in North America for the detection of Alzheimer’s disease, as well as other forms of dementia, epilepsy, neuro-oncology, and movement disorders. Algernon is also the parent company of a private subsidiary called Algernon NeuroScience that has been advancing a psychedelic program investigating a proprietary form of DMT for stroke and traumatic brain injury. The Company also owns a 20% equity position in Seyltx, a private U.S. based drug development company advancing a chronic cough drug called Ifenprodil.

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

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