Alterity Therapeutics (ASX:ATH) is set to raise AU$40 million via a two-tranche placement at AU$0.011 apiece, according to a Monday Australian bourse filing.

The first tranche of the placement is to raise about AU$12.8 million by issuing 1.2 billion shares and the second tranche is expected to raise about AU$27.2 million by issuing 2.5 billion shares.

Participants will also receive one free attached option per three shares subscribed exercisable at AU$0.028 expiring Feb. 26, 2027.

The proceeds will be used to fund ongoing clinical development programs for its Parkinson's disease drug candidate and general working capital, added the filing.

MST Financial Services was the lead manager for the placement.