Alterity Therapeutics Secures A$40M to Advance Neurodegenerative Drug Development

• Alterity Therapeutics has secured A$40 million in a two-tranche share placement to institutional and professional investors.

• The funds will support the advancement of ATH434, a treatment for Multiple System Atrophy (MSA), and further neurodegenerative disease research.

Alterity Therapeutics a biotechnology company dedicated to developing disease modifying treatments for neurodegenerative diseases, has announced it has secured binding commitments for a A$40 million capital raise through a two-tranche placement of fully paid ordinary shares to institutional and sophisticated investors. The financing aims to accelerate the development of ATH434, its lead candidate for treating Multiple System Atrophy (MSA), a rare and aggressive neurodegenerative disease.

According to David Stamler, M.D., CEO of Alterity, “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.” He further highlighted the potential of ATH434 in slowing clinical progression and its favourable safety profile, stating that the company aims to engage with the FDA to expedite its path to market.

The Placement was fully subscribed, with shares issued at A$0.011 per share—an 8.3% discount to the last ASX closing price prior to the trading halt. For every three shares issued, investors will receive one free attaching option, exercisable at A$0.028 per share until 26 February 2027. MST Financial Services Pty Ltd acted as the sole manager for the offering.

Tranche One will raise approximately A$12.8 million and is expected to close around 17 February 2025. Tranche Two, subject to shareholder approval at an Extraordinary General Meeting in late March 2025, is set to bring in A$27.2 million. This includes A$0.15 million in commitments from related parties, including company directors and CEO David Stamler.

The new shares will rank equally with existing Alterity Therapeutics shares, and the options are intended to be quoted on the ASX, subject to meeting listing requirements. The funds raised will be directed towards the regulatory and clinical advancement of ATH434, as well as ongoing research into treatments for major neurodegenerative diseases, including Parkinson’s.