Alterity Therapeutics (ASX: ATH, NASDAQ: ATHE), a biotechnology company dedicated to developing disease modifying treatments for neurodegenerative diseases, has announced a successful capital raising of A$20.0 million through a strategic placement. The placement involved fully paid ordinary shares offered to international and Australian professional investors. MST Financial Services Pty Ltd acted as the sole manager for this offering.
The placement was priced at A$0.012 per share, representing a 7.7% discount to the last ASX closing price before the trading halt and a 7.3% discount to the 10-day volume weighted average price (VWAP). According to the company, no options were issued as part of the transaction, and the new shares will rank equally with existing fully paid ordinary shares. The company intends to utilise the proceeds from the placement to bolster its balance sheet and advance the development of ATH434.
Specifically, the funds will support non-clinical studies, chemical manufacturing and controls (CMC) activities, clinical and regulatory activities related to the future development of ATH434 in Multiple System Atrophy (MSA), and general working capital needs. Alterity has recently reported positive topline results from its Phase 2 clinical trials of ATH434, demonstrating a clinically meaningful benefit and a favourable safety profile. Based on this data, the company plans to engage with the FDA to discuss the future development pathway for ATH434.
David Stamler, M.D., Chief Executive Officer of Alterity, expressed gratitude for the investment community’s continued interest, particularly following the efficacy demonstrated in the Phase 2 clinical trial in Multiple System Atrophy. He highlighted the exciting prospects for the next twelve months as the company actively pursues the path to approval, noting that the additional funding strengthens their institutional register and balance sheet, positioning the company for strategic partnerships.
