Alterity Therapeutics raises A$40M in placement

Alterity Therapeutics (ATHE) has received binding commitments for a capital raising of A$40M via a two tranche placement of fully paid ordinary shares to Australian and international institutions and other unrelated sophisticated, professional or exempt investors. MST Financial Service 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 new shares issued, one free attaching option will be issued with an exercise price of A$0.028 and an expiry date on 26 February 2027. Tranche one of the Placement is to raise approximately A$12.8M via the issue of 1.2B New Shares. 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$27.2M via the issue of 2.5B New Shares. 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$0.15M of commitments from related parties, the commitments will be subject to shareholder approval which will be sought at the same general meeting. The Company CEO, David Stamler, has also committed to subscribe under the Placement. The new shares to be issued will rank equally with existing ATH fully paid ordinary shares. 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.