InvestmentAug 3, 2026, 04:34 PM
Alzamend Neuro Secures $25M Preferred Stock Investment
AI Summary
Alzamend Neuro, Inc. entered into a Securities Purchase Agreement with Ault Lending, LLC to sell up to $25 million in newly designated Series D convertible preferred stock. An initial tranche of $7.5 million was purchased by Ault Lending, an affiliate of the company. The agreement includes provisions for future tranches, registration rights for the common stock issuable upon conversion, and requires stockholder approval for shares exceeding the Nasdaq Limit.
Key Highlights
- Alzamend Neuro secured up to $25 million in financing through the sale of Series D convertible preferred stock.
- An initial tranche of $7.5 million in preferred shares was purchased by Ault Lending, LLC, an affiliate of the company.
- The agreement allows for the purchase of an additional $2.5 million in a second tranche and up to $15 million in subsequent tranches.
- Company agreed to file a registration statement for common stock issuable upon conversion by August 15, 2026, or after its 10-K filing.
- A 2% liquidated damages penalty (up to 15% aggregate) applies for registration statement filing or effectiveness defaults.
- Stockholder approval is required for the issuance of conversion shares exceeding the Nasdaq 19.99% limit.
- Purchaser receives 'most favored nation' rights and a three-year right of first refusal on future investments.
Price Impact
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