NEW YORK – Allarity Therapeutics on Thursday announced a public offering of 2,444,445 shares of common stock at $4.50 per share and common warrants to purchase the same number of shares of common stock at the same price.
The Boston-based company is expecting gross proceeds of around $11 million from the offering, which is slated to close on or around July 10. The warrants will be exercisable immediately and will expire five years from the initial exercise date. AGP/Alliance Global Partners is the sole placement agent for the offering.
Allarity said it will use the proceeds to make payments stipulated in license agreements with Novartis and Eisai, to pay off a promissory note from 3i Fund, conduct clinical trials, and for working capital and general corporate purposes, according to a filing with the US Securities and Exchange Commission.
The firm is developing dovitinib, a pan-tyrosine kinase inhibitor licensed from Novartis, in several indications including ovarian, endometrial, breast, and gastrointestinal stromal cancers. Last year, the firm ended its registrational plans for dovitinib monotherapy in biomarker-selected metastatic kidney cancer patients after the US Food and Drug Administration said its applications were incomplete.
Allarity has since refocused its pipeline and is exploring dovitinib in combination with other drugs in various indications. The firm is also developing a PARP and tankyrase inhibitor, stenoparib, in ovarian cancer, which it licensed from Eisai.
Allarity also owns European rights to R-Pharm's Ixempra (ixabepilone). This week, the firm reported initial data from a Phase II trial in Europe, in which researchers used Allarity's Drug Response Predictor (DRP)-Ixempra CDx to screen 36 metastatic breast cancer patients for a transcriptomic signature and identify best responders to the chemotherapy. Out of five patients deemed DRP positive, two had a partial response on Ixempra and two had stable disease.
In April, Allarity raised $7.5 million in a separate public offering. This week, the firm said it is reducing the excise price of the outstanding warrants issued in that offering to purchase up to 250,000 shares of common stock from $34.00 per share to $4.50 per share, and it is extending the termination date from April 21, 2028, to July 10, 2028, once the latest offering closes.