Full Press Release Details
Alterity Therapeutics Raises A$40.0 million
- Funds to be used primarily to advance development
of ATH434 in Parkinsonian Disorders -
- Capital raising was strongly supported
by domestic and international institutional investors -
MELBOURNE, AUSTRALIA AND SAN FRANCISCO, USA
- 10 February 2025: Alterity Therapeutics (ASX: ATH, NASDAQ: ATHE) ("Alterity" or the "Company"),
a biotechnology company dedicated to developing disease modifying treatments for neurodegenerative diseases, today announced it has received
binding commitments for a capital raising of A$40.0 million via a two tranche placement (the "Placement") of fully
paid ordinary shares ("New Shares") to Australian and international institutions and other unrelated sophisticated,
professional or exempt investors.
"We are grateful for the strong response
from the investment community and are proud to welcome a number of leading domestic and international institutions as shareholders in
support of Alterity as we advance our lead compound ATH434 for the treatment of neurodegenerative diseases," said David Stamler,
M.D., Chief Executive Officer of Alterity. "ATH434 has demonstrated significant slowing of clinical progression and a favourable
safety profile in Multiple System Atrophy (MSA), a rare and rapidly progressive disease. We will use funds from this capital raise to
accelerate ATH434 regulatory and development activities and to continue research and discovery of novel compounds for major indications
such as Parkinson's disease. Given the strength of the data and the tremendous unmet need for treating MSA, I am looking forward
to engaging with FDA on the best path to bring ATH434 to individuals with MSA as soon as possible."
MST Financial Services Pty Ltd (MST) acted
as sole manager of the offering.
The Placement was fully subscribed and was conducted
at A$0.011 per share, representing a discount of 8.3% to the last ASX closing price of ATH ordinary shares prior to the trading halt.
For every three (3) new shares issued, one (1) free attaching option will be issued with an exercise price of A$0.028 and an expiry date
on 26 February 2027 ("New Options").
Tranche one of the Placement is to raise approximately
A$12.8 million via the issue of 1.2 billion New Shares ("Tranche One"). New Shares in Tranche One will be issued under
the Company's available placement capacity pursuant to ASX Listing Rule 7.1 & 7.1a. The issue of New Shares forming Tranche
One of the Placement is proposed to occur on or about 17 February 2025.
Tranche two of the Placement is expected to raise
approximately A$27.2 million via the issue of 2.5 billion New Shares ("Tranche Two"). New Shares issued under Tranche
Two and the issue of all New Options are conditional on shareholder approval to be sought at an Extraordinary General Meeting of the Company
which is expected to be held in late March 2025. Subject to satisfying the quotation conditions of ASX including the spread requirements
set out in ASX Listing Rule 2.5, condition 6, the options are intended to be quoted on the ASX. All New Options will be issued under a
transaction specific prospectus which will be lodged prior to the issue of the New Options.
Tranche Two of the Placement includes an aggregate
of A$0.15 million of commitments from related parties (directors and their associates), the commitments will be subject to shareholder
approval which will be sought at the same general meeting. The Company CEO, David Stamler (or his nominee(s)), has also committed to subscribe
under the Placement.
The new shares to be issued will rank equally
with existing ATH fully paid ordinary shares.
Further details are set out in the Appendix 3B
released to ASX at or about the same time as this announcement.
The use of proceeds from this financing will provide
Alterity a strong balance sheet to fund ongoing clinical development programs for ATH434, including planned advancements in MSA, continuing
discovery and research efforts in neurodegenerative diseases, including Parkinson's Disease, and general working capital.
At the end of January, the company released positive
topline results from its ATH434-201 Phase 2 clinical trial of ATH434. The data demonstrated a clinically meaningful benefit at both ATH434
doses studied and the trial achieved statistical significance at the 50 mg dose with 48% slowing of clinical progression on the Unified
MSA Rating Scale (UMSARS), a functional rating scale that assesses disability on activities of daily living affected in MSA. In addition,
ATH434 demonstrated a favorable safety profile and key MRI biomarker data showed iron stabilization in MSA affected brain regions. Based
on the strength of these Phase 2 data, the company plans to engage with the FDA to discuss the path forward for accelerating the
development of ATH434.
About Alterity Therapeutics Limited
Alterity Therapeutics is a clinical stage biotechnology
company dedicated to creating an alternate future for people living with neurodegenerative diseases. The Company's lead asset,
ATH434, has the potential to treat various Parkinsonian disorders and is currently being evaluated in two Phase 2 clinical trials in Multiple
System Atrophy. Alterity also has a broad drug discovery platform generating patentable chemical compounds to treat the underlying pathology
of neurological diseases. The Company is based in Melbourne, Australia, and San Francisco, California, USA. For further information please
visit the Company's web site at www.alteritytherapeutics.com.
Authorisation & Additional information
This announcement was authorized by David Stamler, CEO of Alterity
Therapeutics Limited.
Investor and Media Contacts:
Forward Looking Statements
This press release contains "forward-looking
statements" within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934.
The Company has tried to identify such forward-looking statements by use of such words as "expects," "intends," "hopes,"
"anticipates," "believes," "could," "may," "evidences" and "estimates," and
other similar expressions, but these words are not the exclusive means of identifying such statements.
Important factors that could cause actual results
to differ materially from those indicated by such forward-looking statements are described in the sections titled "Risk Factors"
in the Company's filings with the SEC, including its most recent Annual Report on Form 20-F as well as reports on Form 6-K, including,
but not limited to the following: statements relating to the Company's drug development program, including, but not limited to the initiation,
progress and outcomes of clinical trials of the Company's drug development program, including, but not limited to, ATH434, and any other
statements that are not historical facts. Such statements involve risks and uncertainties, including, but not limited to, those risks
and uncertainties relating to the difficulties or delays in financing, development, testing, regulatory approval, production and marketing
of the Company's drug components, including, but not limited to, ATH434, the ability of the Company to procure additional future
sources of financing, unexpected adverse side effects or inadequate therapeutic efficacy of the Company's drug compounds, including, but
not limited to, ATH434, that could slow or prevent products coming to market, the uncertainty of obtaining patent protection for the Company's
intellectual property or trade secrets, the uncertainty of successfully enforcing the Company's patent rights and the uncertainty
of the Company freedom to operate.
Any forward-looking statement made by us in
this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake
no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as
a result of new information, future developments or otherwise.