Small-cap biotech Alterity Therapeutics (ASX:ATH) has pocketed $1.3 million from the first tranche of its $4.8 million share placement to help fund its ongoing clinical trial work.
The $9.75 million market capitalisation company says the proceeds from the placement will provide ongoing funding for its phase two clinical trials in Multiple System Atrophy (MSA), ATH434-201 and ATH434-202, and help with planning for a potential phase three trial.
Alterity’s key asset, ATH434, has the potential to treat various Parkinsonian disorders.
Under the second tranche, the company is aiming to raise $3.5 million, subject to shareholder approval at a General Meeting slated for 29 December 2023.
For every new share issued, one free attaching short-dated option will be issued to investors. These options will have an exercise price of $0.007 and an expiry date of 31 August 2024.
Meanwhile, for every 3 new shares issued, one free attaching long-dated option will be issued. The long-dated option will have an exercise price of $0.01 and an expiry date of 31 August 2026.
The placement was managed by financial services provider MST Financial.
Alterity Therapeutics is a clinical-stage biotechnology company focused on creating an alternate future for people living with neurodegenerative diseases.
Write to Aaliyah Rogan at Mining.com.au
Images: Alterity Therapeutics