Alpha Cognition Announces Third Quarter 2022 Results, Provides Company Update

Vancouver, British Columbia–(business wire)–Alphacognition Inc. (TSX-V: ACOG) (OTCQB: ACOGF) (“Alpha Cognition” or the “Company”), a biopharmaceutical company committed to developing new treatments with the potential to transform the lives of people with debilitating neurodegenerative diseases, today announced financial results of reported and provided an update for the company for the third quarter that ended in September. March 30, 2022.

“We continue to prepare the NDA submission of ALPHA-1062 for mild to moderate Alzheimer’s disease. For the first time in over a decade, market research has shown a need for effective Alzheimer’s disease treatment with minimal GI and insomnia-related adverse events. We are preparing for a meeting with the U.S. Food and Drug Administration (“FDA”) on the topic. The goal of this meeting is to work with the FDA on next steps in this important clinical program. It’s a condition that affects millions of people, but there is no approved treatment for it.We continue to explore partnerships and other opportunities,” said Michael McFadden, our Chief Executive Officer.

Recent company development

The Company has announced that it has withdrawn its previously announced market offering of units on November 17, 2022. This withdrawal results from an assessment by the Company’s management that current market conditions are not conducive to a public offering on terms that are in its best interest. of our shareholders; No securities will be sold in response to the offering as a result of such withdrawal.

Developments in the third quarter

• We conducted an additional steady-state bioavailability study designed to demonstrate pharmacokinetic (PK) equivalence between 5mg ALPHA-1062 delayed-release tablets and 8mg galantamine hydrobromide extended-release (ER) capsules. Completed a bioequivalence study. These data, coupled with the positive pivotal data announced in June, establish bioequivalence for both formulations of galantamine hydrobromide, with a minor Strengthens NDA filing for ALPHA-1062 in to moderate AD.

• We have implemented cost-cutting measures to lower our short-term burn rate. The Company has streamlined its research and development program to focus on ALPHA-1062 and has reduced personnel and other operating costs not essential to the ALPHA-1062 NDA file.

Third Quarter 2022 Financial Highlights

(expressed in USD)

• Research and development (R&D) expenses were $1.6 million for the three months ended September 30, 2022 and $6.4 million for the nine months ended September 30, 2022. This compares to $2.1 million and $5.3 million respectively in the same period in 2021. Research and development expenses increased for the nine months ended September 30, 2022, primarily due to additional costs related to the progress of his ALPHA-1062 and ALPHA-0602 clinical and preclinical studies.

• General and administrative expenses (G&A) of $0.9 million for the three months ended September 30, 2022, excluding non-cash charges related to accrual, amortization, depreciation and stock-based compensation; $2.5 million in the nine months that ended in 2010. 2022 is up from $0.7 million and $1.6 million in the same period in 2021. The increase in general and administrative expenses in 2022 is primarily related to administration, consulting and professional fees, investor relations, progress or clinical trial support, and corporate operations support.

• The Company recorded gains on revalued derivative liabilities of $0.3 million for the three months ended September 30, 2021 and $1.7 million for the nine months ended September 30, 2022. The Company will reassess the derivative liabilities associated with the Convertible Notes and the recognition of derivative liabilities related to the transfer of US dollar exercise price warrants from Alpha Cognition Canada to Alpha Cognition Inc. each reporting period. . Cognition Canada was acquired by Alpha Cognition Inc. and became its wholly owned subsidiary.

• The Company recorded $0 and $1.4 million in the three months ended September 30, 2022 and $1.4 million in the same period in 2021, related to the IPO and reverse acquisition transactions in the first quarter of 2021. Monthly listing costs were zero.

• Net loss for the third quarter of 2022 was $2.8 million, or a net loss of $0.04 per share. His net loss for the nine months ended September 30, 2022 was $8.8 million compared to the third quarter, or a net loss of $0.13 per share. 2021 net loss of $4.3 million, or $0.08 per share, and a net loss of $16.5 million, or $0.33 per share, for the nine months ended September 30, 2021 It’s a loss.

• Cash and cash equivalents as of September 30, 2022 were $3.7 million.

• The number of common shares outstanding on September 30, 2022 was 61,023,450 shares.

About Alpha Cognition

Alpha Cognition Inc. is a clinical-stage biopharmaceutical company dedicated to developing treatments for patients suffering from neurodegenerative diseases with limited treatment options, such as Alzheimer’s disease and amyotrophic lateral sclerosis (ALS) .

ALPHA-1062 is a patented novel chemical being developed as a new generation acetylcholinesterase inhibitor for the treatment of Alzheimer’s disease with minimal expected gastrointestinal side effects. The active metabolite of ALPHA-1062 is distinct from donepezil and rivastigmine in that it binds to neuronal nicotinic receptors, particularly the α-7 subtype, which is known to have positive effects on cognition. ALPHA-1062 is also being developed as an intranasal formulation in combination with memantine to treat moderate to severe Alzheimer’s dementia and for traumatic brain injury.

ALPHA-0602 (Progranulin) is expressed in several cell types in the central nervous system and peripheral tissues, promotes cell survival, regulates certain inflammatory processes, and regulates lysosomal function and microglial response to disease. play an important role in A use intended to treat neurodegenerative disease has been patented by the company, and alpha-0602 has been granted orphan drug designation by the FDA for the treatment of his ALS. ALPHA-0702 and ALPHA-0802 are granulin epithelial motifs (“GEM”) derived from full-length progranulin that have therapeutic potential across multiple neurodegenerative diseases. GEMs have been shown to be important in cell proliferation, survival, repair, and regulation of inflammation. ALPHA-0702 and ALPHA-0802 are designed to offer this because of their low toxicity and potentially high therapeutic efficacy.

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Forward-Looking Statements

This news release is not an advertisement or a public offering of securities. The Securities Commission or similar authority of Canada or any other jurisdiction has not reviewed or in any way communicated the merits of this news release or of the securities described herein, and any representation to the contrary is a criminal offence. .

This news release contains forward-looking statements within the meaning of applicable securities laws. Other than statements of historical fact, information contained in this news release may be forward-looking statements that reflect our current views regarding future events and are subject to known and unknown risks and uncertainties. , assumptions and other factors that may cause actual results. Results, levels of activity, performance or performance may differ materially from the information expressed or implied by these forward-looking statements. Forward-looking statements are expects, intends, plans, aims, anticipates, believes, estimates, anticipates, anticipates, may, “target”, “seek”, “consider”, “continue”, “ongoing” or the negative of these terms or other equivalent terms intended to identify forward-looking statements . Forward-looking statements in this news release include information about our business strategy, market size, potential growth opportunities, capital requirements, clinical development activities, timing and results of clinical trials, regulatory submissions and potential regulatory requirements. Includes regulatory approval and commercialization of the technology. Although we believe that forward-looking statements are based on reasonable grounds, these statements are based on a combination of facts and factors currently known to us and our expectations of the future. , is not certain. We cannot guarantee that actual results will match these forward-looking statements as a result of known and unknown risks, uncertainties, assumptions and other factors. These risks, uncertainties, assumptions and other factors include those associated with clinical research and manufacturing, and the development and commercialization of our products. The need for additional financing to sustain the business. risks posed by the economic and political environment in which we operate or plan to operate; Market volatility due to the COVID-19 pandemic. Potential losses arising from business expansion into new markets. increased competition; assumptions about market trends and anticipated demand and demand for our products and proposed products; Dependence on industry manufacturers, suppliers and key personnel. Failure to adequately protect intellectual property. Failure to adequately manage future growth. adverse market conditions; failure to meet ongoing regulatory requirements or obtain regulatory approval; These forward-looking statements speak only as of the date of this news release and, except as required by applicable securities laws, may not be correct even if new information becomes available in the future. We undertake no obligation to revise or update any forward-looking statements. .

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