Allarity Therapeutics Receives NASDAQ-Approved Extension to Regain Compliance with Nasdaq Listing Rule 5550(b)(1)

Boston (April 17, 2024)—Allarity Therapeutics, Inc. (“Allarity” or the “Company”) (NASDAQ: ALLR), a clinical-stage pharmaceutical company dedicated to developing personalized cancer treatments, today announced that it had been granted an extension until May 14, 2024, to regain compliance with Nasdaq Listing Rule 5550(b)(1).

On February 1, 2024, Allarity Therapeutics presented a strategic plan to the Nasdaq Hearings Panel, detailing both immediate and long-term strategies aimed at regaining compliance with the requirements outlined in Nasdaq Listing Rules 5550(a)(2) and 5550(b). This comprehensive plan encompassed a series of decisive steps, including a thorough review and reduction of operating costs and pursuing additional capital through various strategic financing options. The plan was crafted to not only meet Nasdaq’s immediate compliance requirements but also to strengthen the company’s overall financial position and operational efficiency.

Following a recent presentation on the progress of the plan's execution to date, Nasdaq issued an extension, granting Allarity additional time until May 14, 2024, to demonstrate full compliance with Nasdaq Listing Rule 5550(b)(1), which requires a minimum stockholders' equity of $2,500,000.

The steps that Allarity has taken to regain compliance with Nasdaq’s listing requirements include that the Company recently implemented a 1-for-20 reverse stock split effective April 9, 2024, aimed at regaining bid price compliance, rule 5550(a)(2). In parallel, Allarity has been aggressively working to adjust its financial structure. These efforts include ongoing cost reduction initiatives, reducing monthly operational expenditures from over $1 million to $400,000. In addition, the company has entered into negotiations with key stakeholders, including warrant holders, to adjust the terms and conditions to make future capital raising more amenable, as well as negotiations to reduce other major liabilities. Finally, the Company has already started raising new equity by utilizing its existing ATM and expects to take further action so Allarity can meet the $2,500,000 equity requirement on the May 14, 2024 target date.