- Alterity Therapeutics (ATH) is planning to raise up to $35 million under a two-tranche placement to advance clinical trials
- Alterity is developing its lead drug, ATH434, to treat Multiple System Atrophy, which is a neurodegenerative disease
- Over 945.9 million shares will be issued over the two tranches at 3.7 cents — representing a 24.8 per cent discount to the 15-day volume-weighted average price
- $10 million will be raised under tranche one and, if shareholders approve, a further $25 million will be raised under the second tranche
- Tranche two also comes with a one-for-one free attaching option, which can be exercised at seven cents within three years
- Company shares have dropped a slight two per cent to trade for 4.9 cents
Alterity Therapeutics (ATH) is planning to raise up to $35 million under a two-tranche placement to advance clinical trials.
The biotech company received binding commitments from Australian and international institutions and other sophisticated and professional investors.
The placement was fully subscribed and shares will be issued at 3.7 cents which represents a 25.7 per cent discount to the 30-day volume-weighted average price (VWAP) and a 24.8 per cent discount to the 15-day VWAP.
Tranche one of the placement will issue 271,251,007 shares at 3.7 cents to raise $10 million under Alterity's current placement capacity.
In addition, Alterity intends to raise up to $25 million by issuing 674,694,939 shares in tranche two. The stage also comes with one-for-one free-attaching options at a seven cent exercise price, which will expire after three years. However, this tranche is subject to shareholder approval, which will be sought at the annual general meeting next month.
Alterity will use the funding to progress its clinical development program for its lead drug candidate, ATH434, for ongoing research and discovery, and as working capital.
The clinical program includes a natural history study and a phase two trial targeting patients with Multiple System Atrophy (MSA). MSA is a rare and progressive Parkinsonism disorder. Symptoms include motor difficulties, impaired ability to maintain normal blood pressure, bowel function and bladder control.
Currently, there isn't a cure for the disease — just treatment and medication to help manage symptoms.
So far, preclinical studies have shown the drug can reduce pathological markers of MSA and Parkinson's disease. Studies also showed improved function and a potential to modify the progression of the diseases.
"We believe that our science is unique, validated, and is capturing the attention of physicians and researchers for its potential to have a positive impact on the lives of many people suffering from Parkinsonian diseases which currently have no cure," Chairman and CEO Geoffrey Kempler said.
Alterity's ATH434 has received orphan drug designation for MSA in the U.S. and E.U.
Company shares have dropped a slight two per cent to trade for 4.9 cents at 11:05 am AEDT.