Alterity Therapeutics (ASX:ATH) Raises A$40 Million in Placement
Capital Raising
Alterity Therapeutics (ASX:ATH) has secured A$40.0 million through a two-tranche placement of fully paid ordinary shares. The placement was fully subscribed at A$0.011 per share, reflecting an 8.3% discount to the last ASX closing price before the trading halt. Institutional investors from Australia and internationally participated strongly in the offering.
Use of Proceeds
The funds raised will be allocated to advance regulatory and development activities for ATH434, the company’s lead compound for neurodegenerative diseases, particularly Multiple System Atrophy (MSA) and Parkinson’s disease. Additionally, the proceeds will support ongoing research and discovery of new compounds targeting major neurological indications and general working capital.
Operational Achievements
In January, Alterity released positive topline results from its Phase 2 ATH434-201 clinical trial. The data showed a 48% slowing of clinical progression in MSA patients and a favorable safety profile. These results have prompted the company to engage with the FDA to expedite the development process for ATH434.
Executive Comments
David Stamler, M.D., Chief Executive Officer of Alterity, stated, “We are grateful for the strong response from the investment community and are proud to welcome a number of leading domestic and international institutions as shareholders in support of Alterity as we advance our lead compound ATH434 for the treatment of neurodegenerative diseases.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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