Why Allarity Therapeutics Stock Is Tanking Today

Allarity Therapeutics Inc ALLR shares are diving Thursday after the company announced the pricing of a public offering.

What Happened: Allarity shares surged on Wednesday after the company said initial data from the Phase 2 trial of Ixempra showed potential for improved clinical benefit in DRP-selected metastatic breast cancer patients.

The stock traded up to around the $13 level before pulling back. Allarity shares closed the day up 31.4% at $8.28. 

Following Wednesday's move, the company priced a public offering of 2.44 million shares and common warrants to purchase up to 2.44 million shares at a combined price of $4.50 per share. Allarity anticipates aggregate gross proceeds of approximatley $11 million from the offering. 

Allarity intends to use a portion of the proceeds to pay account payables and accrued liabilities outstanding, to make payments under certain license agreements, to pay off a certain outstanding promissory note, to conduct clinical trials and for working capital. The offering is expected to close on or about July 10. 

Allarity is a clinical-stage pharmaceutical company developing novel oncology therapeutics with drug-specific DRP companion diagnostics for personalized cancer care.

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ALLR Price Action: Allarity shares were down 52% at $3.96 at the time of publication, according to Benzinga Pro.

Photo: Lorenzo Cafaro from Pixabay.