Alzamend Neuro entered into a Securities Purchase Agreement with an affiliate, Ault Lending, LLC, to sell up to $25 million of its newly designated Series D Convertible Preferred Stock. The financing is structured in multiple tranches, with an initial closing of $7.5 million completed on July 31, 2026.
Key Details
- Agreement: The agreement provides for the sale of up to 25,000 shares of Series D Convertible Preferred Stock for a total of up to $25 million.
- Initial Closing: The company raised $7.5 million in gross proceeds from the sale of 7,500 preferred shares in an initial tranche that closed on July 31, 2026.
- Future Tranches: The purchaser is committed to acquiring an additional $2.5 million in a second tranche and has the right to purchase the remaining $15 million in subsequent closings.
- Conversion Terms: Each preferred share has a stated value of $1,050 and is convertible into common stock at a price equal to the greater of (i) a floor price of $0.2668 or (ii) 80% of the lowest closing bid price in the five trading days prior to conversion. Conversion is subject to a 19.99% ownership limitation pending shareholder approval.
- Nasdaq Compliance: The company also disclosed it is not in compliance with Nasdaq's majority independent board requirement following the passing of a director. It has a cure period until the earlier of its next annual meeting or July 20, 2027, to regain compliance.