Alzamend Neuro sells up to $25M in convertible preferred to affiliate Ault Lending
On July 31, 2026, Alzamend Neuro agreed to sell up to $25 million of its newly designated Series D convertible preferred stock to Ault Lending, LLC, which the filing says is an affiliate of the company. The company sold $7.5 million of preferred at an initial closing, and the purchaser agreed to buy $2.5 million more later, with up to $15 million in further tranches permitted. Conversion into common stock could dilute existing shareholders, and the company must seek stockholder approval for conversion shares above the Nasdaq 19.99% limit.
Key points
- Initial tranche: 7,500 Series D preferred shares sold for $7.5 million on July 31, 2026; second tranche of $2.5 million agreed
- Conversion price is the greater of a $0.2668 floor and 80% of the lowest closing bid in the prior five trading days, capped at $2.00 per share
- Company must file a resale registration statement by the earlier of five days after its 10-K filing or August 15, 2026, and seek stockholder approval for conversion shares above 19.99% of common stock outstanding
- Registration default would trigger cash payments to the purchaser of 2% of stated value monthly, capped at 15%
The filing
Written by AI on Nov 9, 2026, 8:53 AM ET, from this filing only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on August 03, 2026.
Briefs are written by AI from the filing text and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the AI's reading of the filing for shareholders, not a price forecast. Not investment advice.