Alzamend Neuro Announces Initial Closing of Securities Purchase Agreement with Ault Lending
Rhea-AI Summary
Alzamend Neuro (Nasdaq: ALZN) entered a Securities Purchase Agreement with Ault Lending under which Ault Lending agreed to purchase up to $25 million of newly designated Series D Convertible Preferred Stock. According to Alzamend, the initial tranche of $7.5 million has closed for 7,500 Preferred Shares at $1,000 per share, each with a stated value of $1,050.
The deal is structured as 17 tranche closings. A second tranche of $2.5 million is expected within ten business days after SEC effectiveness of a resale registration statement, with the remaining $15 million targeted in approximately monthly $1 million tranches over about 15 months, all subject to customary conditions. Alzamend will pay Ault Lending a 2% origination fee on each tranche and plans to use proceeds for working capital and to advance its clinical programs, including its next‑generation lithium product and Phase I/IIA immunotherapeutic vaccine trial.
Positive
- $7.5 million gross proceeds received from initial Series D preferred tranche
- Agreement provides up to $25 million in Series D Convertible Preferred funding
- Planned 15 additional monthly tranches of about $1 million each over ~15 months
- Proceeds earmarked to support clinical trials and general working capital needs
- Funding supports continued Phase I/IIA trial of immunotherapeutic vaccine for Alzheimer’s
Negative
- Alzamend will pay a 2% origination fee on the purchase price at each tranche closing
- Only the initial $7.5 million tranche has closed; remaining funding is expected but subject to customary conditions
News Explained
The $7.5 million initial tranche is closed, while conversion terms still determine whether and how much existing ownership can be diluted.
Alzamend has closed the
The release does not state a conversion price or the number of common shares that could be issued, so the eventual ownership effect cannot be sized from this disclosure.
The latest supplied balance-sheet snapshot, dated
The
Sources and calculations
- Alzamend initial closing release (2026-08-04)
- Dilution definition (undated)
- Latest supplied quarterly fundamentals (2026-04-30)
- Alzamend Form 8-K reporting material event (2026-08-03)
- Cash and equivalents vs quarterly operating cash outflow, in days of cash use $710,689 / ($2,797,294 / 90) = [object Object]
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Company received
$7.5 million - Agreement provides for up to
$17.5 million
Under the terms of the Agreement, Ault Lending agreed to purchase up to 25,000 Preferred Shares at a purchase price of
The Company intends to use the net proceeds from the offering for general working capital and corporate purposes, including to further its clinical trials. In connection with the Agreement, the Company and Ault Lending also entered into a Registration Rights Agreement requiring the Company to register the resale of the shares of common stock issuable upon conversion of the Preferred Shares. Ault Lending is an indirect, wholly owned subsidiary of Ault Capital Group, Inc ("Ault Capital Group").
"Ault Lending is proud to support Alzamend as it works toward next-generation treatments for Alzheimer's, BD, MDD and PTSD," said Milton "Todd" Ault, III, Executive Chairman of Ault Capital Group and Founder and Chairman Emeritus of Alzamend. "This mission is personal to me. I have lost family members to Alzheimer's, and I have watched loved ones live with BD, MDD and PTSD. Backing Alzamend's continued clinical progress is exactly the kind of investment Ault Lending was built to make, and I am committed to seeing this research through commercialization."
"The funding from Ault Lending will help us further our clinical trials," said Stephan Jackman, CEO of Alzamend. "We are working diligently towards completing the next milestone. If we can develop a next-generation lithium product that would not require therapeutic drug monitoring, it would constitute a major improvement over current lithium-based treatments and positively impact the 43.5 million Americans afflicted with Alzheimer's, BD, MDD and PTSD. Moreover, this funding will enable us to continue our Phase I/IIA safety/tolerability/efficacy clinical trial of our immunotherapeutic vaccine, a potential cure for Alzheimer's."
Additional information regarding the securities described above and the terms of the Agreement and the Preferred Shares are included in a Current Report on Form 8-K filed with the United States Securities and Exchange Commission on August 3, 2026.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of shares of Alzamend's common stock in any state or other 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 other jurisdiction.
For more information on Alzamend, stockholders, investors, and any other interested parties may read Alzamend's public filings and press releases available under the Investor Relations section at https://www.alzamend.com/ or available at https://www.sec.gov/.
About Alzamend Neuro
Alzamend is a clinical-stage biopharmaceutical company developing novel therapies for Alzheimer's, BD, MDD and PTSD. Our mission is to rapidly develop and market safe and effective treatments. Our current pipeline consists of two novel therapeutic drug candidates, AL001, a patented ionic cocrystal delivering lithium with salicylate and L-proline designed to improve brain delivery and safety compared to conventional lithium, and ALZN002, a patented cell-based therapeutic vaccine designed to restore the immune system's ability to clear Alzheimer's beta-amyloid. The latter is a next-generation active-immunity approach offering potential advantages in dosing frequency and cost compared to approved passive-immunity antibody therapies. Both candidates are exclusively licensed from the University of South Florida Research Foundation under royalty-bearing 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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SOURCE Alzamend Neuro, Inc.