Allarity Therapeutics (ALLR) Outlines Company’s 2024 Progress and Objectives

• Current Cash Balance of $20 million Expected to Provide Runway Into 2026
  
• Allarity to Pause Use of ATM
  
• Cap Table Successfully Cleaned Up
  
• Allarity’s Stenoparib Shows Extended Duration of Phase 2 Clinical Benefit
  

Allarity Therapeutics, Inc. (NASDAQ: ALLR) today outlines the Company’s progress in 2024 and future objectives.

Led by New Management Allarity has Materially Strengthened its Finances

The Company’s overall financial situation significantly improved as the Company today announced a new, strong cash balance and pausing of At-The-Market (ATM) offering:

• New Strong Cash Balance: Allarity Therapeutics is pleased to announce that the Company now has a financial runway extending into 2026 at its current burn rate with a cash balance of $20M as of July 19, 2024.
  
• Pausing the ATM: In line with this newly achieved financial position, Allarity plans to pause its ATM offering program for the foreseeable future.

This new financial situation led by a new management that, throughout 2024, has implemented several key actions to improve Allarity’s future outlook:

• Cleaning Up the Capitalization Table: Consolidated to a single class of common stock, eliminating variable-priced convertible securities, including both warrants and Series A Preferred Stock.
  
• Streamlining Operations and Cutting Costs: Enhancing operational efficiency and reducing the cost base.
  
• Focusing Resources on Stenoparib: Concentrating all company efforts on advancing stenoparib, a novel dual PARP and Tankyrase inhibitor, the Company’s promising clinical asset.

Stenoparib Continues To Show Extended Duration of Clinical Benefit in Phase 2 Trial

Earlier this year, Allarity Therapeutics made a strategic pivot away from a multi-asset pipeline strategy to accelerate and focus solely on stenoparib.

As previously announced, in its Phase 2 clinical trial in advanced, recurrent ovarian cancer patients, stenoparib continues to show durable clinical benefit when given twice daily as monotherapy, with multiple patients remaining on treatment more than 30 weeks.

These results provided clinical proof of concept for stenoparib, prompting Allarity to focus its resources on developing a follow-on clinical trial to accelerate potential regulatory approval by the FDA of stenoparib.

Company Receives Wells Notice

As Allarity disclosed today in a Form 8-K filing, on July 18, 2024, Allarity received a “Wells Notice” from the Staff of the Securities and Exchange Commission (the “SEC”), relating to the previously disclosed SEC investigation. The Wells Notice relates to the Company’s disclosures regarding meetings with the United States Food and Drug Administration (the “FDA”) regarding our NDA for Dovitinib or Dovitinib-DRP, which was submitted to the FDA in 2021. Allarity also understands that three of its former officers received Wells Notices from the SEC relating to the same conduct.

The Company understands that all of the conduct relating to the SEC Staff’s Wells Notice occurred during or prior to fiscal year 2022. A Wells Notice is neither a formal charge of wrongdoing nor a final determination that the recipient has violated any law. The Wells Notice informed the Company that the SEC Staff has made a preliminary determination to recommend that the SEC file an enforcement action against the Company that would allege certain violations of the federal securities laws. The Company is continuing to cooperate with the SEC and maintains that its actions were appropriate and intends to pursue the Wells Notice process, including submitting a formal response to the SEC.

Proposed Reverse Stock Split Necessary to Maintain NASDAQ Listing

The Company’s board of directors has put a proposal before shareholders for a reverse stock split. Allarity has requested approval of the reverse stock split to regain and sustain compliance with NASDAQ requirements. The reverse split is essential to enabling compliance with this objective. If the Reverse Stock Split is not approved by the Company’s stockholders, the Company’s common stock may be delisted from NASDAQ. Maintaining a NASDAQ listing is crucial for investor confidence and to maintain liquidity in the Company’s common stock. Put simply, a NASDAQ delisting could complicate stockholder’s ability to trade the Company’s common stock, impact its stock price and affect stockholder’s ability to buy or sell when desired. Failure to secure approval for the reverse stock split may hinder management’s ability to execute its strategy, to the detriment of shareholders. Additionally, it may impede strategic initiatives dependent on the issuance of common stock. It is essential to understand that a reverse stock split consolidates existing shares, preserving the Company’s overall value and each shareholder’s respective ownership percentage.

We respectfully request that you vote in favor of the reverse split proposal. If you have already voted, it is not too late to change your vote should you wish to do so. If you have any questions or need help voting, please call Allarity’s proxy solicitor, Sodali & Co, at +1 212 300 2470.

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