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Allarity Therapeutics Prices $7.5M Public Offering

NEW YORK – Allarity Therapeutics on Wednesday announced pricing its public offering of common shares and pre-funded warrants at $.75 per share, aiming to raise approximately $7.5 million in gross proceeds.

The offering, which is expected to close on April 21, includes 2,869,330 shares of common stock; 7,130,670 pre-funded warrants; and 10 million common warrants to purchase 10 million shares of common stock at an effective combined price of $.75 per share and common warrant. The warrants will be exercisable upon issuance and will expire five years from the date of issuance, the firm said in a filing with the US Securities and Exchange Commission.

AGP/Alliance Global Partners is the sole placement agent for the offering.

Allarity will use the funding to make payments under the Novartis license agreement for its tyrosine kinase inhibitor dovitinib, to initiate clinical trials, to pay outstanding account payables and accrued liabilities, to redeem a portion of its Series A convertible preferred stock, and for working capital and general corporate purposes, according to the SEC filing.

The Boston-based firm's pipeline includes dovitinib, PARP inhibitor stenoparib, and microtubule inhibitor Ixempra (ixabepilone). Last year, Allarity scrapped its registrational plans for dovitinib monotherapy in biomarker-selected metastatic kidney cancer patients after the US Food and Drug Administration issued a Refusal to File notice saying the new drug application for the drug was incomplete. The firm has pivoted to developing dovitinib in combination trials including a study with its PARP inhibitor stenoparib in advanced solid tumors.

The firm's only approved drug, Ixempra, was cleared in the US in 2007 as a treatment for breast cancer. Allarity is continuing to evaluate the drug in certain metastatic breast cancer patients selected for treatment using its Drug Response Predictor companion diagnostic.