- Alterity Therapeutics (ATH) has completed the first tranche of a $35 million placement, in which it raised $10 million
- Through the tranche, the company allocated 271,251,007 of its shares to institutional investors around the world
- Alterity Therapeutics plans to conduct a second tranche for a further $25 million, subject to shareholder approval
- The proceeds will be used to advance the company’s clinical development program, ongoing research and discovery, and for working capital
- Alterity Therapeutics shares are down 5.26 per cent at market open, worth 3.6 cents per share
Alterity Therapeutics (ATH) has completed the first tranche of a $35 million placement, in which it raised $10 million.
The company first announced plans for a new capital raise earlier this month, on October 12. A few days later, on October 16, Alterity Therapeutics released more details about the $35 million placement, which would be conducted in two tranches.
The company received binding commitments from institutional investors in Australia, North America and the United Kingdom, as well as other unrelated sophisticated, professional or exempt investors.
Through the first tranche, Alterity allocated 271,251,007 of its shares to institutional investors to raise $10 million. With the first tranche complete, the company is now planning the second tranche, in which it hopes to raise a further $25 million.
The second tranche of the placement will allocate 674,694,939 shares in Alterity, along with one-for-one free attaching options. The company will conduct the second tranche once it receives approval from company shareholders at Alterity’s Annual General Meeting (AGM).
The company’s AGM is currently scheduled to be held on November 18, 2020.
The total aggregate proceeds of Alterity’s two-tranche placement will primarily be used to advance the company’s clinical development program for its lead drug, ATH434. The drug could become a potential treatment for Multiple System Atrophy (MSA), a rare neurodegenerative disease.
The company’s ATH434 program will include a Natural History study and Phase 2 trial, both in patients currently suffering from MSA.
In addition, some funds from the placement may also go towards Alterity’s ongoing research and discovery efforts, as well as working capital.
Alterity Therapeutics shares are down 5.26 per cent at market open, worth 3.6 cents per share at 10:43 am AEDT.