Algernon Pharmaceuticals announces C$4M non-dilutive financing

Algernon Pharmaceuticals (AGNPF) has signed a definitive equipment order and financing agreement with Catalyst MedTech for the provision of four, U.S. FDA cleared Oncovision CareMiBrain brain-specific, Positron Emission Tomography scanner systems to be utilized in four planned Algernon neuroimaging medical clinics. This represents a non-dilutive deal valued at over CAD $4 million and includes an agreement to acquire an additional six systems for the establishment of additional U.S. clinics, on an adjusted cost basis. The terms include financing the scanners with a 20% deposit by the Company, with monthly payments at an average annual interest rate of 7% per annum, and a balloon payment owing after 2 years of operations. Since the PET scanner represents approximately 80% of the capital costs required by Algernon to open a neuroimaging clinic, this is a key transaction for the Company under its newly announced neuroimaging initiative. The clinics will be the first dedicated, brain-specific PET neuroimaging facilities of their kind in the U.S., focussed on the early-stage detection of Alzheimer’s Disease, and will also provide PET scans for other forms of dementia, epilepsy, neuro-oncology, and movement disorders. In recent findings, the Alzheimer’s Association reports that nearly 80% of Americans surveyed would want to know if they had Alzheimer’s disease before having symptoms, or before those symptoms interfered with their activities. Algernon will work in partnership with neurologists, geriatricians, personal care physicians, and other medical professionals and organizations, to generate patient referrals for the clinics. As part of the definitive agreement, Catalyst MedTech, will also provide consulting services to Algernon on clinical solutions including radioactive materials application consultation, guidance on policies, procedures, license and permit application drafting, submission assistance, and regulatory response. Catalyst will also provide guidance on accreditation, compliance, payer conflict resolution, renewal obligations and all aspects of billing & coding for the clinics. The agreement also includes a warranty and services contract for each PET scanner, also to be provided by Catalyst MedTech. Algernon will further update the market shortly on its upcoming expansion and growth plans, including the location of it first U.S. flagship neuroimaging clinic.