Allarity Therapeutics (NASDAQ: ALLR) stock is down 55%. ALLR stock fell 55% because it issued more stock to raise capital. So far, so normal, not funny in the slightest. But this headline from Seeking Alpha does still amuse:
“Allarity Therapeutics falls after pricing public offering to raise $11M”
Well, yes. Because on that same page we also get told that the market capitalisation for Allarity is just above the $4 million level. Trying to raise $11 million on a $4 million corporate valuation is always going to be - shall we say - challenging, if not dilutive. OK, maybe that's just us being unkind. Or even us being observant.
As to what ALLR does: “Allarity Therapeutics, Inc., a clinical-stage biopharmaceutical company, engages in developing oncology therapeutics using drug-specific companion diagnostics generated by its drug response predictor technology. Its drug candidates include Stenoparib,” and so on. It's not been doing it all that well as the stock is down 99% and more over the past 12 months. They've also recently had a reverse stock split to get back up to the NASDAQ $1 minimum bid price. The aim and purpose of doing that is to stay on NASDAQ so that it is possible to raise more capital of course.
Allarity Therapeutics stock price from NASDAQ