Alterity Therapeutics (ASX:ATH) has received binding commitments for a capital raising of $4.8 million before costs via a two-tranche placement of fully paid ordinary shares to Australian and international institutions and other unrelated sophisticated, professional or other exempt investors.
The company said it will use the proceeds to provide ongoing funding of its Phase 2 clinical trials in MSA, ATH434-201 and ATH434-202, along with planning for a potential Phase 3 clinical trial in MSA, continuing discovery and research efforts in neurodegenerative diseases, including Parkinson’s Disease, and general working capital.
“We are grateful for the support from both current and new investors as we continue to advance our clinical development and research programs,” said CEO Dr David Stamler.
“We are making excellent progress with our two Phase 2 clinical trials in Multiple System Atrophy with enrollment recently completed in our randomized, double-blind ATH434-201 study. In our ATH434-202 open label biomarker study, we look forward to potential preliminary data in the first half of next year in the first cohort of patients from that trial.”
“We also remain very active within the medical and scientific communities with recent data presentations at the MDS, AAS and Society for Neuroscience meetings. In addition, we plan to present new animal data at the Parkinson’s Study Group meeting next month. We remain committed to bringing disease modifying treatments to individuals suffering from neurodegenerative diseases,” added Dr Stamler.
The company said the placement was conducted at $0.0035 per new share. One free attaching short-dated option will be issued for every new share issued. The short-dated option will have an exercise price of $0.007 and an expiry date of 31 August 2024. In addition, for every three new shares issued, one free attaching long-dated option will be issued. The long-dated option will have an exercise price of A$0.01 and an expiry date of 31 August 2026.
Tranche one of the placement is to raise approximately $1.3 million. The company said tranche two of the placement will raise approximately $3.5 million.
It said shareholders with a registered address in Australia and New Zealand will have the opportunity to participate in a Security Purchase Plan under which shares and free-attaching options are to be offered to on the same terms as the placement up to a maximum of $30,000 per eligible shareholder.