Allarity Therapeutics Inc. (NASDAQ:ALLR), a biopharmaceutical company, announced on Monday an agreement with Ascendiant Capital Markets, LLC to potentially sell up to $947,000 worth of its common stock. The at-the-market offering allows the sale of shares from time to time through Ascendiant, acting as the sales agent.
The shares will be offered following the company's prospectus supplement filed with the Securities and Exchange Commission (SEC) on the same day. This follows Allarity's shelf registration statement filed on November 2, 2023, and subsequently declared effective by the SEC on November 29, 2023. The available market value of shares for sale under this agreement is initially limited, but may increase if the company's public float reaches or surpasses $75 million.
Under the terms of the agreement, Ascendiant can sell shares on The Nasdaq Stock Market or other trading platforms at prevailing market prices or at negotiated prices. Allarity retains control over the timing and amount of stock sold, with the ability to set minimum price thresholds.
The company is not obligated to sell any shares and the offering will conclude by the earlier of all shares being sold, March 19, 2026, or if either party terminates the agreement with a 10-day notice.
Allarity will pay Ascendiant a commission of 3% on the gross proceeds from the sale of shares and has agreed to indemnify the sales agent, including a one-time fee of up to $30,000 for execution of the agreement and up to $2,500 for legal counsel fees on a quarterly and annual basis.
This at-the-market equity program provides Allarity with a flexible option to finance its operations, subject to market conditions and the company's capital needs. The full details of the agreement have been filed with the SEC and are available for review in the company's latest 8K filing, which includes the legal opinion of Venable LLP regarding the issuance of the shares.
This article is based on a press release statement.
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