Ault Global Holdings Inc. (NYSEAMERICAN: DPW) lost 6.27% after announcing that biopharmaceutical firm Alzamend Neuro Inc. (NASDAQ: ALZN) had priced its IPO of 2.5 million shares of its common stock. The company priced the offering at $5 per share for gross proceeds of $12.5 million. Alzamend started trading on the Nasdaq Capital Market under the ticker “ALZN” on June 15, 2021.
Ault Global owns 5.1 million Alzamend shares
The company’s executive chairman, Milton “Todd” Ault III, said that Ault Global is delighted that Alzamend has attained such a massive milestone to enhance its commitment to Alzheimer’s disease cures and treatment development.
There are beneficial rights and ownership to invest in Alzamend. Ault Global owns 5.1 million Alzamend common shares owned through its Digital Power lending LLC subsidiary. Equally, Ault Global has the right to purchase an additional 1.35 million Alzamend common shares once it exercises the warrants beneficially owned by Digital power Lending.
In March, Digital Power Lending entered a securities purchase agreement with Alzamend, according to which it will acquire a total of 6.7 million shares for $10 million, and sales will be in tranches. Also, Alzamend agreed to issue a warrant to DPL to acquire additional shares of its common shares bought under the securities purchase deal at $3 per share. After closing the first tranche of $4 million, Alzamend issued 2.7 million shares of its common stock.
DPL to exercise warrants option within 18 months
Equally, Alzamend agreed that for 18 months after the payment date of the final $4 million tranches, DPL would have the right to invest another $10 million under the same terms. Still, there are no particular milestones expected concerning the additional investment. If DPL exercises the right for all options and warrants, it will own 22.4 million Alzamend shares.