Alzamend Neuro, a preclinical biotech developing therapies for Alzheimer's disease, announced terms for its IPO on Tuesday.
The Tampa, FL-based company plans to raise $12.5 million by offering 2.5 million shares at $5 per share. Insider Digital Power Lending, a subsidiary of CEO-affiliated Ault Global Holdings, intends to purchase $10 million worth of shares in the offering, or 80% of the deal. Alzamend's public float will represent just 3% of basic shares outstanding, or 0.6% after insider buying. At the proposed price, Alzamend Neuro would command a basic market cap of $425 million and a fully diluted market value of $543 million.
Lead candidate AL001 is an ionic cocrystal of lithium for the treatment of Alzheimer’s and other neurodegenerative diseases and psychiatric disorders such as bipolar disorder, depression, and post-traumatic stress disorder (PTSD). Licensed from the University of South Florida, Alzamend expects to submit an IND for AL001 by the end of the 2Q21, and plans to pursue review under the 505(b)(2) pathway. Second candidate AL002 is a cell-based therapeutic vaccine in preclinical studies designed to elicit an immune response and prevent the build-up of plaque deposits in Alzheimer’s patients.
Alzamend Neuro was founded in 2016 and plans to list on the Nasdaq under the symbol ALZN. Spartan Securities is the sole bookrunner on the deal.
