Alzamend Neuro Announces Additional Investment Under Its Investigational New Drug Application for AL001 for Dementia Related to Alzheimer’s Pursuant to the Securities Purchase Agreement with Digital Power Lending
04 August 2021 - 8:30PM
Business Wire
Alzamend Neuro, Inc. (Nasdaq: ALZN) (“Alzamend”)
announced that Digital Power Lending, LLC (“DPL”), a wholly
owned subsidiary of Ault Global Holdings, Inc. (“AGH”) (NYSE
American: DPW), a diversified holding company, has made an
additional investment in Alzamend, a related party of AGH and early
clinical-stage biopharmaceutical company focused on developing
novel products for the treatment of neurodegenerative diseases and
psychiatric disorders.
Additional Investment in Alzamend Neuro, Inc.
On July 28, 2021, Alzamend received a “study may proceed” letter
from the U.S. Food and Drug Administration for a Phase 1a study
under Alzamend’s Investigational New Drug application for AL001, a
lithium-based ionic cocrystal oral therapy for patients with
dementia related to mild, moderate, and severe cognitive impairment
associated with Alzheimer’s disease.
Based on the achievement of this milestone, under the March 12,
2021 securities purchase agreement, Alzamend sold an additional
1,333,333 shares of its common stock to DPL for $2 million, or
$1.50 per share, and issued to DPL warrants to acquire 666,667
shares of its common stock with an exercise price of $3.00 per
share. The premise of this investment into Alzamend was to provide
Alzamend a committed source of capital, driven by milestones, to
fund Alzamend’s therapeutic treatments through the end of Phase 1
clinical trials. A third tranche in the amount of $4,000,000 for
the purchase of an aggregate of 2,666,667 shares and warrants to
purchase an additional 1,333,333 shares shall be issued to DPL upon
DPL receiving written confirmation from Alzamend that its Phase 1a
human clinical trial for AL001 has been completed.
Stephan Jackman, Chief Executive Officer of Alzamend, stated,
“We are grateful for the support of Alzamend in our endeavors to
develop treatments and cures for Alzheimer’s, other
neurodegenerative diseases, and psychiatric disorders represented
by DPL’s investment in us. With the closing of our IPO in June 2021
and the additional funding related to this significant milestone,
we believe we are well-positioned to make significant progress
towards moving AL001 down the path of our upcoming human clinical
trials without the need to raise new capital.”
Alzamend’s mission is to help the Alzheimer’s disease community
by supporting the full product development life cycle of treatment
and cures for dementia and Alzheimer’s disease driven by the belief
that strong support of research is the foundation for true
innovation. Dementia is not a normal part of aging, and there are
numerous symptoms that can indicate cognitive and neurological
impairments. Alzheimer’s disease is the most common form of
dementia. This disease robs people of their loved ones, as memories
are erased and personalities are diminished. Alzamend’s vision
statement nicely sums up their mission: “Together We Can ‘Make
Alzheimer’s Just a Memory!’™”.
The economic impact of Alzheimer’s disease can be as devastating
as the emotional stress. Over 47 million people in the world
currently live with Alzheimer’s disease or dementia, with over 6.2
million in the U.S. (two-thirds are women). The lifetime cost of
care for an Alzheimer’s disease patient is estimated at $374,000 in
the U.S. According to the Alzheimer’s Association, it is estimated
that Alzheimer’s and dementia deaths increased more than 16% in
2021 due to COVID-19. In 2021, Alzheimer’s and dementia will cost
the U.S. an estimated $355 billion with the costs expected to rise
into the trillions in the next 25 years. In addition, Medicare and
Medicaid is expected to pay approximately $239 billion, or 67% of
the treatment and long-term care costs associated with Alzheimer’s
disease and dementia, with another $79 billion of out-of-pocket
costs. According to the Alzheimer’s Association, 11 million
Americans provide an estimated 15.3 billion hours of unpaid care
per year, valued at $257 billion, for these patients with
two-thirds of these being women, and one-third being daughters.
About Alzamend Neuro
We are a preclinical stage biopharmaceutical company focused on
developing novel products for the treatment of neurodegenerative
diseases and psychiatric disorders, including Alzheimer’s disease.
With our two current and future product candidates, we aim to bring
treatments or cures to market at a reasonable cost as quickly as
possible. Our current pipeline consists of two novel therapeutic
drug candidates, AL001 - a patented ionic cocrystal technology
delivering a therapeutic combination of lithium, proline, and
salicylate, and AL002 - a patented method using a mutant-peptide
sensitized cell as a cell-based therapeutic vaccine that seeks to
restore the ability of a patient’s immunological system to combat
Alzheimer’s disease. Both of our product candidates are licensed
from the pursuant to royalty-bearing exclusive worldwide
licenses.
Forward-Looking Statements
This press release contains "forward looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements generally include
statements that are predictive in nature and depend upon or refer
to future events or conditions, and include words such as
"believes," "plans," "anticipates," "projects," "estimates,"
"expects," "intends," "strategy," "future," "opportunity," "may,"
"will," "should," "could," "potential," or similar expressions.
Statements that are not historical facts are forward-looking
statements. Forward-looking statements are based on current beliefs
and assumptions that are subject to risks and uncertainties.
Forward-looking statements speak only as of the date they are made,
and Alzamend undertakes no obligation to update any of them
publicly in light of new information or future events. Actual
results could differ materially from those contained in any
forward-looking statement as a result of various factors. More
information, including potential risk factors, that could affect
Alzamend’s business and financial results are included in
Alzamend’s filings with the U.S. Securities and Exchange
Commission. All filings are available at www.sec.gov and on
Alzamend’s website at www.Alzamend.com.
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Email: Info@Alzamend.com or call: 1-844-722-6333
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