Algernon signs contract, investment deal with AMI

Executive Summary

• Algernon Health Inc. has entered into a strategic business and investment agreement with American Molecular Imaging (AMI), granting AMI the exclusive radiology reading services contract for Algernon's planned U.S. brain-specific neuroimaging clinics.
• AMI is making a total aggregate investment of $500,000 USD, split between $250,000 USD in Algernon's recently announced private placement and $250,000 USD in Algernon USA LLC, the subsidiary overseeing U.S. operations.
• The agreement supports Algernon's plan to open dedicated, brain-optimized PET neuroimaging facilities focused on early-stage Alzheimer's detection and other neurological disorders, with the first U.S. clinic planned for early 2026.

Key Details

• Strategic Agreement: Algernon Health and American Molecular Imaging (AMI) signed a strategic business and investment agreement.
• Exclusive Contract: AMI awarded the exclusive radiology reading services contract for all of Algernon's planned U.S. neuroimaging clinics.
• Investment Structure:
  • AMI invests $250,000 USD in Algernon's recently announced private placement.
  • AMI invests $250,000 USD in Algernon USA LLC (a newly created subsidiary).
  • Total aggregate investment: $500,000 USD.
• Definitive Documentation: The agreement with Algernon USA is subject to definitive documentation expected to be signed within 60 days.
• Operational Focus: Algernon's planned clinics are the first dedicated, brain-optimized PET neuroimaging facilities in the U.S., targeting early-stage Alzheimer's disease, dementia, epilepsy, neuro-oncology, and movement disorders.
• Equipment and Financing: Algernon previously signed a definitive equipment order, financing agreement, and consulting arrangement with Catalyst MedTech.
  • Includes four U.S. FDA-cleared Oncovision CareMiBrain brain-specific PET scanner systems.
  • Non-dilutive deal valued at over $4 million.
  • Includes an option to acquire an additional six systems for future clinics on an adjusted-cost basis.
• Timeline: The first U.S.-based neuroimaging clinic is planned for early 2026.
• Securities Restriction: Any Algernon Health securities issued are subject to a statutory hold period of four months plus a day from issuance under Canadian securities legislation.

Notable Quotes

• Christopher J. Moreau, CEO of Algernon Health: "We are very pleased to have entered into this agreement with AMI... By bringing together and working with the best of the best, we can ensure that we deliver the highest level of patient care possible while operating our clinics effectively and efficiently."
• Dr. Jaideep Sohi, MD, CEO of American Molecular Imaging: "We are truly excited to be a part of Algernon's plan to bring this new brain-optimized PET scan technology to the market and to join forces in making a serious contribution in the fight against Alzheimer's disease."