Algernon Pharmaceuticals Inc. announced that it has established Algernon NeuroScience, a new wholly-owned private subsidiary of AGN Pharma, to advance the Company's psychedelic DMT stroke program. The Company has valued the psychedelic DMT research program at $20 million and has formally completed an asset transfer and trademark license agreement, transferring all DMT research program assets into AGN Neuro. The Company has also signed a management agreement with AGN Neuro to provide all day-to-day operations, as well as management of the DMT stroke clinical trial program.

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 will remain a private company until it has advanced through to the completion of a Phase 2a stroke study, which is planned to begin in Fourth Quarter of the 2023 calendar. Based on the strength of the data from that study, AGN Neuro will review and consider a potential direct IPO listing onto the NASDAQ at that time.

AGN Neuro has retained Issuance Inc., the leading investment direct-to-market platform for Reg A+ offerings, as well as the Dalmore Group, a broker-dealer and global expert in the primary and secondary market trading of private securities online at scale through Reg A+ registrations.