On July 6, 2023 Allarity Therapeutics, Inc. (Nasdaq: ALLR) ("Allarity" or the "Company"), a clinical-stage pharmaceutical company developing novel oncology therapeutics together with drug-specific DRP companion diagnostics for personalized cancer care, reported the pricing of its "reasonable best efforts" public offering of 2,444,445 shares of common stock (or common stock equivalents in lieu thereof) and common warrants to purchase up to 2,444,445 shares of common stock at an effective combined price of $4.50 per share and common warrant for aggregate gross proceeds of approximately $11 million, before deducting placement agent fees and other offering expenses (Press release, Allarity Therapeutics, JUL 6, 2023, View Source [SID1234633062]). The warrants will have an exercise price of $4.50 per share, will be exercisable immediately and will expire five years from the initial exercise date.
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The closing of the offering is expected to occur on or about July 10, 2023, subject to the satisfaction of customary closing conditions. The Company intends to use a portion of the net proceeds of this offering to pay account payables and accrued liabilities outstanding, to make payments under certain license agreements, to pay off a certain outstanding promissory note, to conduct clinical trials, to redeem a portion of its Series A Convertible Preferred Stock and for working capital and general corporate purposes. In connection with the offering, the Company has agreed to reduce the exercise price of the outstanding warrants issued in the April 2023 offering to purchase up to 250,000 shares of common stock from $34.00 per share to $4.50 per share and extend the termination date from April 21, 2028 to July 10, 2028, effective upon the closing of this offering.
A.G.P./Alliance Global Partners is acting as sole placement agent for the offering.
The securities described above are being offered pursuant to a registration statement on Form S-1 (File No. 333-272469) previously filed with the Securities and Exchange Commission (SEC) which became effective on July 5, 2023. The offering is being made only by means of a prospectus forming part of the effective registration statement. Copies of the preliminary prospectus and, when available, copies of the final prospectus, relating to the offering may be obtained on the SEC’s website located at View Source Electronic copies of the final prospectus relating to the offering may be obtained, when available, from A.G.P./Alliance Global Partners, 590 Madison Avenue, 28th Floor, New York, NY 10022, or by telephone at (212) 624-2060, or by email at [email protected].
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation, or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.