|Allarity Therapeutics Completes Oversubscribed Rights Issue|
|By: GlobenewsWire - 11 Jun 2021||Back to overview list
– Allarity raises SEK 102.8 million before issue costs to further finance
the development of three high-priority pipeline programs
– The Rights Issue of Units was subscribed for approximately 106 percent, without
Hørsholm, Denmark (10 June 2021) Allarity Therapeutics A/S (“Allarity” or the “Company”) today announced the outcome of the Rights Issue of Units, consisting of shares and warrants series TO 3, resolved upon by the Board of Directors on 19 May 2021 (the “Offering”). The Offering has been subscribed for to a total of 105.96 percent. Of the total units available in the Offering approximately 71.3 percent was subscribed for with preferential rights, and approximately 34.7 percent was subscribed for without preferential rights under the terms disclosed in the EU growth prospectus published on 19 May 2021 (the “Prospectus”). Due to the high subscription rate, totaling approximately 106 percent, underwriting guarantee undertakings are not activated.
The subscription period of the Offering ended on 8 June 2021. The final outcome is that a total of 120,891,157 units have been subscribed for through the Offering and the Company will thus receive approximately SEK 102.8 million before issue costs. Upon full exercise of all warrants of series TO 3, the Company may be provided with an additional capital injection of up to a total of approximately SEK 205.5 million. The warrants series TO 3 may be exercised in five (5) two-week exercise windows during 2021-2023 with the latest exercise window ending on 15 April 2023 as specified in the Prospectus.
Allarity Therapeutics’ CEO, Steve Carchedi, stated, “I would like to thank everyone who is participating in this capital raise, since without your support, patience, and forward-looking mindset it would not be possible to continue to execute our strategy, focusing on commercializing our three high-priority programs: dovitinib, stenoparib and Ixempra®. I would also like to note that the oversubscription of this capital raise is really significant, as it indicates that our investor community shows renewed confidence in our Company. A special thanks to the many long-term shareholders who chose to participate in this rights issue, who have subscribed for the largest part of the new shares in this issue, and at the same time I also warmly welcome those new Allarity investors. Backed by this solid equity financing, Allarity is now very well positioned to continue towards reaching multiple significant milestones with our priority pipeline programs in the remainder of this year and the next year.”
Chairman of the Board of Directors, Duncan Moore, has subscribed for 250,907 Units.
Allocation of Units subscribed for without the support of Unit rights will take place in accordance with what is stated in the Prospectus. Notification of such allocation is announced separately to each subscriber by a settlement note sent out. Nominee-registered shareholders receive notification of allotment in accordance with instructions from the respective nominee. Subscribed and allotted Units must be paid in cash no later than the settlement date, 16 June 2021, in accordance with the instructions in the settlement note.
Through the Offering, the number of shares in the Company increase by 120,891,157 shares, from 241,782,314 shares to 362,673,471 shares and the share capital increase by DKK 6,044,557.85, from DKK 12,089,115.70 to DKK 18,133,673.55. In the event that all warrants are also fully exercised for subscription of new shares in the Company, the number of shares in the Company will increase with an additional maximum of 120,891,157 shares, from 362,673,471 shares to 483,564,628 shares, and the share capital will increase with an additional maximum DKK 6,044,557.85, from DKK 18,133,673.55 to DKK 24,178,231.40. Each warrant series TO 3 entitles the holder to subscribe for one (1) new share in the Company at an exercise price of SEK 1.7.
Trading with BTU (Paid Subscribed Unit) takes place on Nasdaq First North Growth Market until the conversion of BTU into shares and warrants after the Offering has been registered with the Danish Business Authority. Registration with the Danish Business Authority Office is expected to take place in the week starting 21 June 2021.
The Company estimates that the Offering will provide sufficient working capital to operate into Q1 2022.
About Allarity Therapeutics
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This information is information that Allarity A/S is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication on 10 June 2021.
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