Allarity Therapeutics Completes Oversubscribed Rights Issue

– Allarity raises SEK 102.8 million before issue costs to further finance

the development of three high-priority pipeline programs

– The Rights Issue of Units was subscribed for approximately 106 percent, without
the use of guarantors’ commitments

Press release

Hørsholm, Denmark (10 June 2021) Allarity Therapeutics A/S ("Allarity” or the "Company”) today announced the outcome of the Rights Issue of Units, consisting of shares and warrants series TO 3, resolved upon by the Board of Directors on 19 May 2021 (the "Offering”). The Offering has been subscribed for to a total of 105.96 percent. Of the total units available in the Offering approximately 71.3 percent was subscribed for with preferential rights, and approximately 34.7 percent was subscribed for without preferential rights under the terms disclosed in the EU growth prospectus published on 19 May 2021 (the "Prospectus”). Due to the high subscription rate, totaling approximately 106 percent, underwriting guarantee undertakings are not activated.

The subscription period of the Offering ended on 8 June 2021. The final outcome is that a total of 120,891,157 units have been subscribed for through the Offering and the Company will thus receive approximately SEK 102.8 million before issue costs. Upon full exercise of all warrants of series TO 3, the Company may be provided with an additional capital injection of up to a total of approximately SEK 205.5 million. The warrants series TO 3 may be exercised in five (5) two-week exercise windows during 2021-2023 with the latest exercise window ending on 15 April 2023 as specified in the Prospectus.

Allarity Therapeutics’ CEO, Steve Carchedi, stated, "I would like to thank everyone who is participating in this capital raise, since without your support, patience, and forward-looking mindset it would not be possible to continue to execute our strategy, focusing on commercializing our three high-priority programs: dovitinib, stenoparib and Ixempra^®. I would also like to note that the oversubscription of this capital raise is really significant, as it indicates that our investor community shows renewed confidence in our Company. A special thanks to the many long-term shareholders who chose to participate in this rights issue, who have subscribed for the largest part of the new shares in this issue, and at the same time I also warmly welcome those new Allarity investors. Backed by this solid equity financing, Allarity is now very well positioned to continue towards reaching multiple significant milestones with our priority pipeline programs in the remainder of this year and the next year.”

Chairman of the Board of Directors, Duncan Moore, has subscribed for 250,907 Units.

Allocation of Units subscribed for without the support of Unit rights will take place in accordance with what is stated in the Prospectus. Notification of such allocation is announced separately to each subscriber by a settlement note sent out. Nominee-registered shareholders receive notification of allotment in accordance with instructions from the respective nominee. Subscribed and allotted Units must be paid in cash no later than the settlement date, 16 June 2021, in accordance with the instructions in the settlement note.

Through the Offering, the number of shares in the Company increase by 120,891,157 shares, from 241,782,314 shares to 362,673,471 shares and the share capital increase by DKK 6,044,557.85, from DKK 12,089,115.70 to DKK 18,133,673.55. In the event that all warrants are also fully exercised for subscription of new shares in the Company, the number of shares in the Company will increase with an additional maximum of 120,891,157 shares, from 362,673,471 shares to 483,564,628 shares, and the share capital will increase with an additional maximum DKK 6,044,557.85, from DKK 18,133,673.55 to DKK 24,178,231.40. Each warrant series TO 3 entitles the holder to subscribe for one (1) new share in the Company at an exercise price of SEK 1.7.

Trading with BTU (Paid Subscribed Unit) takes place on Nasdaq First North Growth Market until the conversion of BTU into shares and warrants after the Offering has been registered with the Danish Business Authority. Registration with the Danish Business Authority Office is expected to take place in the week starting 21 June 2021.

The Company estimates that the Offering will provide sufficient working capital to operate into Q1 2022.

Advisors
Aalto Capital AB is the sole global coordinator and bookrunner in connection with the Offering and Hagberg & Aneborn Fondkommission AB the issuing agent. Mazanti-Andersen Advokatpartnerselskab is legal advisor to the Company.

About Allarity Therapeutics
Allarity Therapeutics (Nasdaq First North Growth Market Stockholm: ALLR.ST) develops drugs for personalized treatment of cancer guided by its proprietary drug response predictor technology, the DRP^® platform. The company has a mature portfolio of six drug candidates, including compounds in the pre-registration stage. The product portfolio includes: Stenoparib (2X-121), a PARP inhibitor in Phase 2 for ovarian cancer; Dovitinib, a pan-TKI advancing towards a U.S. NDA filing for renal cell carcinoma; IXEMPRA^® (Ixabepilone), a microtubule inhibitor approved in the U.S. for the treatment of breast cancer; LiPlaCis^®, a liposomal formulation of cisplatin in Phase 2 trials for breast and prostate cancer; 2X-111, a liposomal formulation of doxorubicin under manufacturing for Phase 2 in breast cancer; and Irofulven, a DNA damaging agent in Phase 2 for prostate cancer.

About the Drug Response Predictor – DRP^® Companion Diagnostic
Allarity uses its drug specific DRP^® to select those patients who, by the genetic signature of their cancer, are found to have a high likelihood of responding to the specific drug. By screening patients before treatment, the response rate can be significantly increased. The DRP^® method builds on the comparison of sensitive vs. resistant human cancer cell lines, including genomic information from cell lines combined with clinical tumor biology and prior clinical trial outcomes. DRP^® is based on messenger RNA from the patient’s biopsies. DRP^® has proven its ability to provide a statistically significant prediction of the clinical outcome from drug treatment in cancer patients in nearly 40 clinical studies that were examined, including an ongoing, prospective Phase 2 trial. The DRP^® platform can be used in all cancer types and is patented for more than 70 anti-cancer drugs.

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Forward-looking statements
This announcement includes forward-looking statements that involve risks, uncertainties and other factors, many of which are outside of Allarity’s control and which could cause actual results to differ materially from the results discussed in the forward-looking statements. Forward-looking statements include statements concerning Allarity’s plans, objectives, goals, future events, performance and/or other information that is not historical information. All such forward-looking statements are expressly qualified by these cautionary statements and any other cautionary statements which may accompany the forward-looking statements. Allarity undertakes no obligation to publicly update or revise forward-looking statements to reflect subsequent events or circumstances after the date made, except as required by law. Allarity’s clinical programs may be delayed or impacted by the ongoing global COVID-19 pandemic.

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Investor Contact:
        Jens Knudsen, CFO        
+45 8874 2415
Email inquiries: InvestorRelations@allarity.com

Media Contact:
        Thomas Pedersen
        Carrotize PR & Communications
+45 6062 9390
        Email inquiries: tsp@carrotize.com

Certified Adviser:
Svensk Kapitalmarknadsgranskning AB, Email: ca@skmg.se. Tel: +46 11 32 30 732

This information is information that Allarity A/S is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication on 10 June 2021.