Allarity Therapeutics Announces Appointment of New Auditor

Rhea-AI Summary

Allarity Therapeutics, Inc. (Nasdaq: ALLR) announced the appointment of Wolf & Company as its independent public accounting firm, effective immediately. This change follows the resignation of Marcum LLP on August 5, 2022. While the new appointment does not immediately affect compliance with Nasdaq Listing Rule 5250(c)(1), it is a crucial step in regaining compliance. Allarity is working with Wolf & Company to file its Quarterly Report on Form 10-Q for Q2 2022, which is essential for regaining Nasdaq compliance. The company focuses on developing oncology therapeutics supported by its DRP® companion diagnostics.

Positive

• Appointment of Wolf & Company expected to aid in regaining Nasdaq compliance.
• Working towards timely filing of Form 10-Q, crucial for compliance.
• Potential for improved financial oversight with new accounting firm.

Negative

• Previous auditor Marcum LLP resigned, indicating potential issues.
• Non-compliance with Nasdaq Listing Rule could affect stock stability.

Press release    

Cambridge, MA U.S.A. (September 12, 2022) — Allarity Therapeutics, Inc. (Nasdaq: ALLR) (“Allarity” or the “Company”), a clinical-stage pharmaceutical company developing novel oncology therapeutics together with drug-specific DRP^® companion diagnostics for personalized cancer care, announced today the appointment of Wolf & Company, P.C. (Boston, MA) (“Wolf & Company”) as the Company’s independent registered public accounting firm effective immediately. The appointment of Wolf & Company has been approved by both the audit committee and the Board of Directors (the “Board”) of the Company.

The appointment of Wolf & Company has no immediate effect on the Company’s status as being non-compliant with Nasdaq Listing Rule 5250(c)(1). However, it is a pivotal part of the Company’s efforts to regain compliance. Allarity is already working with Wolf & Company to file the Quarterly Report on Form 10-Q for the quarter that ended June 30, 2022 as soon as it is practically feasible, and it is anticipated that following the filing of the Form 10-Q with the SEC, Nasdaq compliance will be regained.

The appointment of Wolf & Company follows the resignation of Marcum LLP (“Marcum”), which previously was the independent registered public accounting firm of Allarity, effective as of August 5, 2022, and as disclosed by Allarity in a Form 8-K filed with the SEC on August 12, 2022, and in a Form 8-K/A filed with the SEC on August 24, 2022.

About Allarity Therapeutics

Allarity Therapeutics, Inc. (Nasdaq: ALLR) develops drugs for personalized treatment of cancer guided by its proprietary and highly validated companion diagnostic technology, the DRP^® platform. The Company has a mature portfolio of three drug candidates: stenoparib, a PARP inhibitor in Phase 2 development for ovarian cancer; dovitinib, a post-Phase 3 pan-tyrosine kinase inhibitor; and the European rights to IXEMPRA^® (Ixabepilone), a microtubule inhibitor approved in the U.S. and marketed by R-PHARM U.S. for the treatment of second-line metastatic breast cancer, currently in Phase 2 development in Europe for the same indication. Additionally, the Company has rights in two secondary assets: 2X-111, a liposomal formulation of doxorubicin in Phase 2 development for metastatic breast cancer and/or glioblastoma multiforme (GBM), which is the subject of discussions for a restructured out-license to Smerud Medical Research International AS; and LiPlaCis^®, a liposomal formulation of cisplatin and its accompanying DRP^®, being developed via a partnership with Chosa ApS, an affiliate of Smerud Medical Research International, for late-stage metastatic breast cancer. The Company is headquartered in the United States and maintains an R&D facility in Hoersholm, Denmark. For more information, please visit the Company’s website at www.Allarity.com.

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, and only treating those patients with a sufficiently high DRP^® score, the therapeutic response rate can be significantly increased. The DRP^® method builds on the comparison of sensitive vs. resistant human cancer cell lines, including transcriptomic information from cell lines combined with clinical tumor biology filters and prior clinical trial outcomes. DRP^® is based on messenger RNA from patient biopsies. The DRP^® platform has proven its ability to provide a statistically significant prediction of the clinical outcome from drug treatment in cancer patients in 37 out of 47 clinical studies that were examined (both retrospective and prospective), including ongoing, prospective Phase 2 trials of Stenoparib and IXEMPRA^®. The DRP^® platform, which can be used in all cancer types and is patented for more than 70 anti-cancer drugs, has been extensively published in peer reviewed literature.

Follow Allarity on Social Media

Facebook: https://www.facebook.com/AllarityTx/
LinkedIn: https://www.linkedin.com/company/allaritytx/
Twitter: https://twitter.com/allaritytx

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide Allarity’s current expectations or forecasts of future events. The words “anticipates,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predicts,” “project,” “should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include, but are not limited to, statements related to the Company’s ability to regain compliance with the Nasdaq Listing Rule, statements relating to the timing of the filing of the Form 10-Q with the SEC, statements related to the expected availability capital to fund its anticipated clinical trials, statements related to advancing dovitinib in combination with another therapeutic candidate or other approved drug, any statements related to ongoing clinical trials for stenoparib as a monotherapy or in combination with another therapeutic candidate for the treatment of advanced ovarian cancer, or ongoing clinical trials (in Europe) for IXEMPRA^® for the treatment of metastatic breast cancer, and statements relating to the effectiveness of the Company’s DRP^® companion diagnostics platform in predicting whether a particular patient is likely to respond to a specific drug. Any forward-looking statements in this press release are based on management’s current expectations of future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the risk that results of a clinical study do not necessarily predict final results and that one or more of the clinical outcomes may materially change following more comprehensive reviews of the data, and as more patient data become available, the risk that results of a clinical study are subject to interpretation and additional analyses may be needed and/or may contradict such results, the receipt of regulatory approval for dovitinib or any of our other therapeutic candidates or, if approved, the successful commercialization of such products, the risk of cessation or delay of any of the ongoing or planned clinical trials and/or our development of our product candidates, the risk that the results of previously conducted studies will not be repeated or observed in ongoing or future studies involving our therapeutic candidates, and the risk that the current COVID-19 pandemic will impact the Company’s current and future clinical trials and the timing of the Company’s preclinical studies and other operations. For a discussion of other risks and uncertainties, and other important factors, any of which could cause our actual results to differ from those contained in the forward-looking statements, see the section entitled “Risk Factors” in our Form S-1 registration statement on file with the Securities and Exchange Commission, available at the Securities and Exchange Commission’s website at www.sec.gov, and as well as discussions of potential risks, uncertainties and other important factors in the Company’s subsequent filings with the Securities and Exchange Commission. All information in this press release is as of the date of the release, and the Company undertakes no duty to update this information unless required by law.

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Company Contact:

        Thomas Jensen
        Senior V.P. of Investor Relations
        investorrelations@allarity.com

Investor Relations:

        Chuck Padala
        LifeSci Advisors
        +1 (646) 627-8390
        chuck@lifesciadvisors.com
        
U.S. Media Contact:

        Mike Beyer
        Sam Brown, Inc.
        +1 (312) 961-2502
        mikebeyer@sambrown.com

        
EU Media Contact:

        Thomas Pedersen
        Carrotize PR & Communications
        +45 6062 9390
        tsp@carrotize.com

Attachment

• Allarity Press Release Appointment of New Auditor

FAQ

What is the significance of Allarity Therapeutics appointing Wolf & Company as its auditor?

The appointment is part of Allarity's strategy to regain compliance with Nasdaq Listing Rule 5250(c)(1) after facing non-compliance issues.

How does the change in accounting firm impact Allarity Therapeutics' compliance status?

While the appointment does not immediately affect compliance, it is a vital step towards filing the necessary reports to regain compliance with Nasdaq.

What previous firm did Allarity Therapeutics work with before Wolf & Company?

Allarity previously worked with Marcum LLP, which resigned as the independent registered public accounting firm.

What is the timeline for Allarity Therapeutics to file its Form 10-Q?

Allarity is working with Wolf & Company to file the Form 10-Q for the quarter ending June 30, 2022, as soon as feasible.