– Company Now Fully Funded Through Data Readout for Primary Phase 2 Clinical Trial –

MELBOURNE, AUSTRALIA AND SAN FRANCISCO, USA – 23 February 2024: Alterity Therapeutics (ASX: ATH, NASDAQ: ATHE) (“Alterity” or “the Company”), a biotechnology company dedicated to developing disease modifying treatments for neurodegenerative diseases, today announced it has received binding commitments for a capital raising of A$3.25 M before costs via a placement (the “Placement”) of fully paid ordinary shares (“New shares”) to Australian institutional and other unrelated sophisticated, professional or other exempt investors.

Chief Executive Officer of Alterity, David Stamler M.D., commented, “We are grateful for the tremendous interest and support from both the institutional and individual investors. With this additional capital, we are now fully funded through the readout of our primary Phase 2 randomized, double-blind ATH434-201 clinical study in Multiple System Atrophy. We look forward to reporting preliminary six-month data from our open label Biomarker study in the first half of 2024 and we remain on track to complete the 201 study in November 2024.”

Dr Stamler continued, “This placement satisfied the demand from institutional investors who had indicated they were willing to take up shortfall from the recent Security Purchase Plan that was fully subscribed by Alterity’s retail shareholders.”

Placement details

The Placement was conducted at A$0.0038 per new share. For every three (3) new shares issued, one (1) free attaching option will be issued. The options will be listed, with an exercise price of A$0.01 and an expiry date of 31 August 2026. The new options be in the same class and have the same terms as the Company’s existing listed ATHO options.

The Placement is to raise approximately A$3.25 million. The shares will be issued under the Company’s available placement capacity, with 416,987,684 new shares to be issued pursuant to ASX Listing Rule 7.1 and 438,275,474 new shares to be issued pursuant to ASX Listing Rule 7.1A. The issue price of the new shares complied with the requirements of LR 7.1A at the date on which the price for the issue of the securities was agreed. The issue of new shares is proposed to occur on or about 4 March 2024. The issue of the new 285,087,720 options is subject to shareholder approval.

The new shares to be issued will rank equally with existing ATH fully paid ordinary shares.

The Company anticipates holding a general meeting of shareholders in mid-April 2024 at which approval for issuing the options will be sought. A notice of meeting which will include the date, time and place of the meeting is being prepared and will be released to ASX when dispatched. If approval is received the options would be expected to be issued shortly after the meeting.

The placement was managed by MST Financial Services Pty Ltd. Further details are set out in the Appendix 3B released to ASX at or about the same time as this announcement.

Use of Proceeds

The use of proceeds from this financing will provide ongoing funding of Alterity’s Phase 2 clinical trials in MSA, ATH434-201 and ATH434-202, along with planning for a potential Phase 3 clinical trial in MSA, continuing discovery and research efforts in neurodegenerative diseases, including Parkinson’s Disease, and general working capital.

About Alterity Therapeutics Limited

Alterity Therapeutics is a clinical stage biotechnology company dedicated to creating an alternate future for people living with neurodegenerative diseases. The Company’s lead asset, ATH434, has the potential to treat various Parkinsonian disorders and is currently being evaluated in two Phase 2 clinical trials in Multiple System Atrophy. Alterity also has a broad drug discovery platform generating patentable chemical compounds to treat the underlying pathology of neurological diseases. The Company is based in Melbourne, Australia, and San Francisco, California, USA. For further information please visit the Company’s web site at www.alteritytherapeutics.com.

Authorisation & Additional information

This announcement was authorized by David Stamler, CEO of Alterity Therapeutics Limited.