Alterity Therapeutics Secures Up to A$7.96 Million Through Underwritten ATHO Options

Underwriting Agreement Boosts Funding Ahead of ATHO Option Expiry

Alterity Therapeutics (ASX:ATH, NASDAQ: ATHE) has entered into an underwriting agreement with MST Financial Services to secure the exercise of up to 8.4 million unexercised ATHO listed options, potentially raising approximately A$4.2 million before costs. This underwriting commitment acts as a financial safety net ahead of the options’ expiry on 31 August 2026, with the total capital raised depending on actual option exercises by shareholders.

Capital Raise Supports Critical Phase 3 Trial

The proceeds from the exercise of these options are earmarked primarily for advancing the late-stage clinical development of ATH434, Alterity’s lead drug candidate targeting Multiple System Atrophy (MSA). The company is preparing to initiate a pivotal Phase 3 trial, a key milestone following positive Phase 2 results demonstrating clinically meaningful efficacy. CEO Dr David Stamler highlighted that the underwriting deal reflects sustained confidence in ATH434 and strengthens the company’s balance sheet as it approaches this crucial trial phase.

Option Details and Underwriting Terms

Currently, there are 15.9 million ATHO options on issue, each exercisable at A$0.50 and expiring at 5:00pm AEST on 31 August 2026. Optionholders wishing to exercise must submit a Notice of Exercise along with payment by the deadline. MST Financial Services, as sole underwriter, has agreed to cover any shortfall up to 8.4 million options, subscribing for an equivalent number of new fully paid ordinary shares.

This arrangement means the total number of shares issued could range from 8.4 million to nearly 16 million, with gross proceeds between A$4.2 million and A$7.96 million before costs. The underwriter will receive a 7% fee on the gross proceeds from the underwritten options. The underwriting agreement includes customary conditions and termination events, such as breaches, regulatory actions, or significant market disruptions, which could lead to termination before completion.

Sub-Underwriting and Regulatory Compliance

MST Financial Services has also secured sub-underwriting agreements with various sophisticated investors, allowing allocation of underwritten options to professional parties. None of these sub-underwriters are related to Alterity, ensuring compliance with ASX Listing Rule 3.11.3. Shares issued under this exercise will be in line with ASX Listing Rule 7.1 Exception 10, maintaining the company’s regulatory standing.

Positioning Ahead of Clinical Milestone

Alterity’s focus remains firmly on the upcoming Phase 3 trial for ATH434 in MSA, a rare and rapidly progressive neurodegenerative disorder. The company’s lead asset has shown promise in earlier clinical phases, and this capital raise through option exercise underwriting is a strategic move to ensure funding continuity. The company’s dual listing in Australia and the US, alongside its ongoing development pipeline, positions it well to advance this critical trial stage.