Alpha Cognition Announces Partial Exercise of Over-allotment Option

Rhea-AI Summary

Alpha Cognition (Nasdaq: ACOG) announced that underwriters have partially exercised their over-allotment option to purchase an additional 488,506 common shares at US$5.75 per share, generating US$2.8 million in additional gross proceeds. Following this exercise, the company's total offering reached 9,184,159 shares, raising approximately US$52.8 million in gross proceeds before deducting expenses.

The company's shares began trading on The Nasdaq Capital Market on November 12, 2024, under ticker ACOG. Proceeds will fund ZUNVEYL™ commercialization for Alzheimer's Disease, pipeline product development, commercial CMC activities, and working capital. Titan Partners Group is serving as Sole Bookrunner for the offering.

Positive

• Raised additional US$2.8 million through over-allotment option exercise
• Total gross proceeds reached US$52.8 million
• Successfully listed on Nasdaq Capital Market

Negative

• Share dilution due to additional 488,506 shares issued

Insights

Financial Analyst

The partial exercise of the over-allotment option adds $2.8 million to Alpha Cognition's total raise, bringing the aggregate gross proceeds to $52.8 million. This significant capital injection at $5.75 per share strengthens the company's financial position for commercializing ZUNVEYL™ and advancing its pipeline. The successful listing on Nasdaq provides enhanced visibility and access to a broader investor base. The funds earmarked for commercialization, R&D and manufacturing activities indicate a well-structured deployment strategy. Given the company's current market cap of $84.1 million, this financing substantially bolsters their cash position for executing their business plan.

Biotech Research Analyst

The successful fundraising positions Alpha Cognition to advance its Alzheimer's Disease therapeutic ZUNVEYL™ towards commercialization, a significant milestone in the competitive neurodegenerative disease market. The allocation of funds to CMC activities suggests preparation for commercial-scale manufacturing, while the R&D investment in pipeline candidates indicates a strategic focus on portfolio expansion. The Nasdaq listing and substantial capital raise enhance the company's ability to execute its development and commercialization strategies in the challenging neurodegenerative disease space.

VANCOUVER, British Columbia & DALLAS--(BUSINESS WIRE)-- Alpha Cognition Inc. (Nasdaq: ACOG) (“Alpha Cognition”, or the “Company”), a biopharmaceutical company committed to developing novel therapies for debilitating neurodegenerative disorders, today announced that the underwriters of its underwritten U.S. public offering (the “Offering”) have partially exercised their over-allotment option to purchase an additional 488,506 common shares at the public offering price of US$5.75 per share for an additional US$2.8 million in gross proceeds. After giving effect to the partial exercise of the over-allotment option, the Company sold an aggregate 9,184,159 common shares for gross proceeds of approximately US$52.8 million, before deducting underwriter discounts and other related expenses. The option closing date was December 16, 2024. The common shares began trading on The Nasdaq Capital Market on November 12, 2024, under the ticker symbol “ACOG”.

The Company intends to use the proceeds towards the commercialization and launch of ZUNVEYL™ in Alzheimer’s Disease, further research and development of its pipeline product candidates, continued commercial CMC activities (chemistry, manufacturing, and controls), and for working capital and general corporate purposes.

Titan Partners Group, a division of American Capital Partners, is acting as Sole Bookrunner for the offering.

The securities were sold pursuant to a registration statement on Form S-1 (File No. 333-280196) relating to these securities and a related registration statement on Form S-1 MEF that became effective upon its filing in accordance with Rule 462(b) under the Securities Act of 1933, as amended. The Offering is being made only by means of a prospectus. A copy of the final prospectus related to the Offering may be obtained from Titan Partners Group LLC, a division of American Capital Partners, LLC, 4 World Trade Center, 29th Floor, New York, NY 10007, or via email at prospectus@titanpartnersgrp.com or telephone at (929) 833-1246. In addition, a copy of the final prospectus relating to the Offering may be obtained via the SEC's website at www.sec.gov.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Alpha Cognition Inc.

Alpha Cognition Inc. is a commercial stage, biopharmaceutical company dedicated to developing treatments for patients suffering from neurodegenerative diseases, such as Alzheimer’s disease and Cognitive Impairment with mild Traumatic Brain Injury (“mTBI”), for which there are currently no approved treatment options.

ZUNVEYL is a patented drug approved as a new generation acetylcholinesterase inhibitor (AChEI) for the treatment of Alzheimer’s disease, with expected minimal gastrointestinal side effects. ZUNVEYL’s active metabolite is differentiated from donepezil and rivastigmine in that it improves the function of neuronal nicotinic receptors, most notably the alpha-7 subtype, which is known to have a positive effect on cognition. Benzgalantamine is also being developed in combination with memantine to treat moderate to severe Alzheimer’s dementia, and as an intranasal formulation for Cognitive Impairment with mTBI.

Forward-looking Statements

This news release includes forward-looking statements within the meaning of applicable securities laws. Except for statements of historical fact, any information contained in this news release may be a forward‐looking statement that reflects the Company’s current views about future events and are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. In some cases, you can identify forward‐looking statements by the words “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “objective,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “target,” “seek,” “contemplate,” “continue” and “ongoing,” or the negative of these terms, or other comparable terminology intended to identify statements about the future. Forward‐looking statements may include statements regarding the potential use of proceeds of the Offering. Although the Company believes to have a reasonable basis for each forward-looking statement, we caution you that these statements are based on a combination of facts and factors currently known by us and our expectations of the future, about which we cannot be certain. The Company cannot assure that the actual results will be consistent with these forward-looking statements. These forward‐looking statements speak only as of the date of this news release and the Company undertakes no obligation to revise or update any forward‐looking statements for any reason, even if new information becomes available in the future.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241216876864/en/

For further information:

Michael McFadden, CEO

Tel: 1-858-344-4375

info@alphacognition.com

Titan Partners Contact:

Tel: (929) 833-1246

info@titanpartnersgrp.com

Source: Alpha Cognition Inc.

FAQ

How much did Alpha Cognition (ACOG) raise in total from its public offering including over-allotment?

Alpha Cognition raised approximately US$52.8 million in total gross proceeds after the partial exercise of the over-allotment option.

What is the price per share for ACOG's over-allotment option exercise?

The over-allotment shares were sold at US$5.75 per share.

When did ACOG begin trading on the Nasdaq Capital Market?

ACOG began trading on the Nasdaq Capital Market on November 12, 2024.

How will Alpha Cognition use the proceeds from its public offering?

The proceeds will be used for ZUNVEYL™ commercialization in Alzheimer's Disease, pipeline product development, commercial CMC activities, and working capital.

How many additional shares were issued through ACOG's over-allotment option?

An additional 488,506 common shares were issued through the over-allotment option.