Algernon Pharmaceuticals Announces Increase in Private Placement Page 1

NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

VANCOUVER, British Columbia, August 13, 2024 (GLOBE NEWSWIRE) — Algernon Pharmaceuticals Inc. (CSE: AGN) (FRANKFURT: AGW0) (OTCQB: AGNPF) (the “Company” or “Algernon”), a Canadian clinical-stage pharmaceutical development company, announces an increase in its non-brokered private placement, previously announced on August 7, 2024, from gross proceeds of $150,000 to $235,200 (the “To offer”) of units (the “Units”) at an issue price of $0.12 per unit. Each unit consists of one Class A ordinary share in the capital of the Company (a “Ordinary shares”) and one warrant to purchase common shares (a “bail”). Each Warrant entitles the holder to acquire one common share (a “Warrant share”) at an exercise price of $0.24 per Warrant Share for a period of 2 years from the date of issuance (the “Expiry date”), subject to acceleration of the expiration date as described below. The offering is expected to close on August 16, 2024.

The Warrants are subject to accelerated expiration if the volume-weighted average trading price of the Common Stock exceeds $0.36 for 20 consecutive trading days. The Company may, within 10 business days after the occurrence of such event, give notice to the holders of the Warrants accelerating the expiration date of the Warrants to a date not less than 30 days after the date of such notice and the issuance of a press release by the Company announcing the accelerated notice (the “Accelerated training period”). All unexercised Warrants will automatically expire at the end of the Accelerated Exercise Period.

The Company may distribute to eligible investors cash consideration and warrants, up to a maximum of eight percent of the proceeds and units issued to investors introduced to the Company by the eligible investors.

The company will use the proceeds of the private placement for working capital.

The issued and to be issued securities described in this press release are subject to a statutory hold period of four months plus one day from the date of issuance in accordance with applicable Canadian securities legislation.

The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “US securities law”), or any state securities laws, and may not be offered or sold within the United States or to, or for the account or benefit of, “U.S. persons” (as that term is defined in Regulation S under the U.S. Securities Act) absent registration under the U.S. Securities Act and applicable state securities laws, or an exemption from such registration.