Alzamend Neuro lands $25M convertible deal from Ault Lending for Alzheimer's trials
What's the deal? Alzamend Neuro (Nasdaq: ALZN), a clinical-stage biopharmaceutical company, has signed a Securities Purchase Agreement with Ault Lending, LLC worth up to $25 million. The financing comes through Series D Convertible Preferred Stock, priced at $1,050 per share.
How it works: Ault Lending committed to buying up to 25,000 preferred shares at $1 million each. The initial tranche, closed August 4, 2026, brought in $7.5 million; a further $2.5 million closing is due within 10 business days.
The remaining 15,000 shares will be purchased monthly at $1 million each over roughly 15 months, subject to standard closing conditions.
What's the endgame? Alzamend will use the capital to boost working capital and advance its Phase I/IIA trial of ALZN002, an immunotherapeutic vaccine for Alzheimer's disease. Its pipeline also includes AL001, a lithium-based candidate combining salicylate and L-proline. Both are licensed from the University of South Florida Research Foundation.
What they said: "If we can develop a next-generation lithium product that does not require therapeutic drug monitoring, it would constitute a major improvement over current lithium-based treatments," said chief executive officer Stephan Jackman.
Ault Lending's executive chairman, Milton "Todd" Ault, III, framed the investment personally: "I have lost family members to Alzheimer's, and I have watched loved ones live with bipolar disorder, major depressive disorder, and PTSD."
The signal: Structured, tranche-based convertible deals let cash-tight clinical-stage biotechs fund trials without a single large equity raise. For Alzamend, staged funding tied to milestones keeps its Alzheimer's and mental-health programs moving toward broader trials.
Read more: third-news.com
