Alzamend Neuro, Inc. (Nasdaq: ALZN) has closed the initial tranche of a Securities Purchase Agreement with Ault Lending, LLC, receiving $7.5 million in gross proceeds through the sale of Series D Convertible Preferred Stock, according to a press release.

Under the agreement, Ault Lending agreed to purchase up to 25,000 Preferred Shares at $1,000 per share, for a total of $25 million. Each share carries a stated value of $1,050. The shares are to be sold across 17 tranche closings. A second tranche of 2,500 shares for $2.5 million is expected to close within ten business days after the SEC declares effective a resale registration statement covering shares of common stock issuable upon conversion. The remaining 15,000 shares are expected to be purchased in monthly tranches of $1 million each over approximately 15 months, subject to customary closing conditions. Alzamend will pay Ault Lending a 2% origination fee at each tranche closing.

Alzamend said it intends to use the net proceeds for general working capital and to support its clinical trials. The company and Ault Lending also entered into a Registration Rights Agreement requiring Alzamend to register the resale of common stock issuable upon conversion of the Preferred Shares. Ault Lending is an indirect, wholly owned subsidiary of Ault Capital Group, Inc.

"The funding from Ault Lending will help us further our clinical trials," said Stephan Jackman, CEO of Alzamend. "We are working diligently towards completing the next milestone."

Alzamend is a clinical-stage biopharmaceutical company with two drug candidates in development: AL001, a lithium-based ionic cocrystal, and ALZN002, a cell-based therapeutic vaccine targeting Alzheimer's disease. Both candidates are exclusively licensed from the University of South Florida Research Foundation. Additional details were filed in a Current Report on Form 8-K with the SEC on August 3, 2026.