Allarity provides 2024 corporate update

Allarity outlines the company’s progress in 2024 and future objectives. The company announced a new cash balance and now has a financial runway extending into 2026 at its current burn rate with a cash balance of $20M as of July 19 and pausing of At-The-Market offering for the foreseeable future. The company is concentrating all company efforts on advancing stenoparib, a novel dual PARP and Tankyrase inhibitor. 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. The company consolidated to a single class of common stock, eliminating variable-priced convertible securities. Allarity received a “Wells Notice” from the Staff of the SEC, relating to the previously disclosed SEC investigation. The Wells notice relates to the company’s disclosures regarding meetings with 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 FY22. 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. The board 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. If the Reverse Stock Split is not approved by the company’s stockholders, the company’s common stock may be delisted from NASDAQ.