On May 19, 2021 Allarity Therapeutics A/S ("Allarity" or the "Company") reported that its Board of Directors has resolved to carry out a share issue with preferential rights for the Company’s existing shareholders, including warrants (the "Offering"), supported by an authorization granted to the Board of Directors at an Extraordinary General Meeting on 15 April 2021 (Press release, Allarity Therapeutics, MAY 19, 2021, View Source [SID1234580289]). Allarity is also today publishing a prospectus (the "Prospectus"), which has been prepared in connection with the Offering, for up to a maximum of 120,891,157 offer units. Each unit ("Offer Unit") consists of one (1) new share of nominal DKK 0.05 ("New Share") with one (1) warrant attached which confers the right to subscribe one (1) share of nominal DKK 0.05 share in the Company at an exercise price of SEK 1.7 ("Investor Warrant"). New Shares are subscribed against cash payment of SEK 0.85. Investor Warrants are subscribed without payment. Guarantees and undertakings of in excess of SEK 100 million from underwriters and guarantors have been received.

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The subscription period starts on 25 May 2021 and ends on 8 June 2021. The Company will receive SEK 102.8 million upon full subscription of the Offer Units, before transaction costs. The Investor Warrants have a term of 22 months and the Company expects to receive additional net proceeds of approximately SEK 206 million upon full subscription and full exercise of the Investor Warrants. The rights issue is also open to the public to the extent it is not fully subscribed for by existing shareholders.

Expected timetable of principal events:

18 May 2021: Last day of trading in the share, including the right to receive subscription rights.
19 May 2021: Publication of the EU growth prospectus.
19 May 2021: First day of trading in the share, excluding the right to receive subscription rights.
20 May 2021: Record date for participation in the Offering, i.e. holders of shares who are registered in the share register maintained by Euroclear Sweden AB on this date will receive subscription rights for participation in the Offering with preferential right.
25 May – 3 June 2021: Trading in subscription rights.
25 May – 8 June 2021: Subscription period.
25 May – until registration is completed with the Danish Business Authority: Trading in BTUs (paid subscription units).
10 June 2021: Expected day for publication of the outcome of the Offering
Allarity’s CEO, Steve Carchedi, stated, "Allarity remains focused on delivering clinical and commercial progress on our three high-priority projects, dovitinib, stenoparib and IXEMPRA. The potential value inflection points for all of these projects could appear on the horizon as soon as within a year or two. This situation presents the circumstances for our Company to offer a compelling investment opportunity to both existing and new shareholders, through the publication of the Prospectus describing the Offering."

Investors in the Offering will have the possibility to exercise their Investor Warrants in five two-week windows during the 22-month term, following the completion of the Offering, during which the Investor Warrants can be exercised. The windows will occur in October 2021, March 2022, August 2022, November 2022, and April 2023.

The Prospectus is available via the Company’s website (www.allarity.com).

Advisors

Aalto Capital AB is the sole global coordinator and bookrunner in connection with the Offering and Hagberg & Aneborn Fondkommission AB the issuing agent. Mazanti-Andersen Advokatpartnerselskab is legal advisor to the Company.

About the Drug Response Predictor – DRP Companion Diagnostic
Allarity uses its drug specific DRP to select those patients who, by the genetic signature of their cancer, are found to have a high likelihood of responding to the specific drug. By screening patients before treatment, the response rate can be significantly increased. The DRP method builds on the comparison of sensitive vs. resistant human cancer cell lines, including genomic information from cell lines combined with clinical tumor biology and prior clinical trial outcomes. DRP is based on messenger RNA from the patient’s biopsies. DRP has proven its ability to provide a statistically significant prediction of the clinical outcome from drug treatment in cancer patients in nearly 40 clinical studies that were examined, including an ongoing, prospective Phase 2 trial. The DRP platform can be used in all cancer types and is patented for more than 70 anti-cancer drugs.