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Allarity Therapeutics Announces that All Series A Preferred and All Variable Priced Warrants have Converted to Common Stock - Conversions Eliminate All Variable Priced Derivative Securities - Conversions Eliminate Any Ma

Key Takeaway: Allarity Therapeutics announced that it has converted all Series A Preferred Stock and 93% of outstanding variable-priced warrants into common stock, simplifying its capital structure to a single class of shares. This strategic move was investor-initiated and eliminates any market overhang from the warrants. Additionally, the company has paid off all its bridge notes. CEO Thomas Jensen emphasized that this conversion allows the company to focus more on its developments in cancer treatments, particularly its lead asset, stenoparib.

Market Sentiment Analysis

POSITIVE FACTORS

  • The conversion of Series A Preferred Stock streamlines the financial structure.
  • Elimination of variable priced derivative securities reduces complexity for investors.
  • The company successfully paid off all bridge notes in full.

CONCERNS & RISKS

  • A limited number of warrants remain unexercised, which may affect stock performance.
  • Market reactions to the capital structure changes remain uncertain.

Full Press Release Details

Allarity Therapeutics Announces that All Series
A Preferred and All Variable Priced Warrants have Converted to Common Stock
- Conversions Eliminate All Variable Priced Derivative Securities
- Conversions Eliminate Any Market Overhang from Warrants
- Series A Preferred and Warrant Conversions were Investor Initiated
- Limited Number of Warrants Convertible at $20 Per Share Remain
- Company Has Paid Off All Bridge Notes in Full
Boston (May 7, 2024)-Allarity Therapeutics, Inc. ("Allarity"
or the "Company") (NASDAQ: ALLR), a clinical-stage pharmaceutical company dedicated to developing personalized cancer treatments,
today announced that its capital structure has been simplified. This was achieved by the recent investor-initiated conversion of all outstanding
Series A Preferred Stock into common stock, resulting in a single class of shares outstanding, and the conversion of 93% of the Company's
outstanding warrants, including all variable-priced warrants. Following this reduction, the Company reports that only a limited number
of warrants remain unexercised, specifically 256,667 warrants, each with a fixed exercise price of $20 per share. Furthermore, the Company
informs that it has fully paid off all bridge notes, totaling $1,746,630, including principal and accrued interest.
Thomas Jensen, CEO of Allarity Therapeutics, stated, "The successful
conversion of these securities by our investors is a key milestone, as it streamlines our financial architecture and may enhance the attractiveness
of our stock. Understanding the investment case for biotech companies like ours can be complex for investors at all levels. Therefore,
we are very pleased with this development, as it allows us to focus more on sharing information about our lead asset, stenoparib, and
less on explaining the intricacies of our capital structure going forward."
About Allarity Therapeutics
Allarity Therapeutics, Inc. (NASDAQ: ALLR) is a clinical-stage biopharmaceutical
company dedicated to developing personalized cancer treatments. The Company is focused on development of stenoparib, a novel PARP/Tankyrase
inhibitor for advanced ovarian cancer patients, using its DRP companion diagnostic for patient selection in the ongoing
phase 2 clinical trial, NCT03878849. Allarity is headquartered in the U.S., with a research facility in Denmark, and is committed to addressing
significant unmet medical needs in cancer treatment. For more information, visit www.allarity.com.
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Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide the Company's current expectations
or forecasts of future events. The words "anticipates," "believe," "continue," "could,"
"estimate," "expect," "intends," "may," "might," "plan," "possible,"
"potential," "predicts," "project," "should," "would" and similar expressions
may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking
statements include, but are not limited to, the implications of the changes to our capital structure for share price development. Any
forward-looking statements in this press release are based on management's current expectations of future events and are subject
to multiple risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied
by such forward-looking statements. These risks and uncertainties include, but are not limited to the risk that the remaining unexercised
warrants could affect our stock's performance and the impact of market reactions to the conversions. For a discussion of other risks
and uncertainties, and other important factors, any of which could cause our actual results to differ from those contained in the forward-looking
statements, see the section entitled "Risk Factors" in our Form S-1 registration statement filed on April 17, 2024, and our
Form 10-K annual report on file with the Securities and Exchange Commission (the "SEC"), available at the SEC's website
at www.sec.gov, and as well as discussions of potential risks, uncertainties and other important factors in the Company's subsequent
filings with the SEC. All information in this press release is as of the date of the release, and the Company undertakes no duty to update
this information unless required by law.
Carrotize PR & Communications

Frequently Asked Questions

What recent changes did Allarity Therapeutics announce?

Allarity announced the conversion of all Series A Preferred Stock and 93% of warrants into common stock.

What warrants remain after the recent conversions?

Only 256,667 warrants are left, each having a fixed exercise price of $20.

Did Allarity pay off any debts recently?

Yes, Allarity has fully paid off all bridge notes totaling $1,746,630.

Who initiated the conversion of securities at Allarity?

The conversions of the securities were initiated by investors.

What is Allarity's main focus in cancer treatment?

Allarity is focused on developing stenoparib for advanced ovarian cancer patients.

Last updated: May 7, 2024