Clinical stage drug development company AdAlta will raise up to $1.23 million through a placement of 61.5 million new shares to investors.

The placement, priced at 2 Australian cents per share, includes one quoted option for every two subscribed shares, with a potential extra option pending shareholder approval.

Funds from the placement will support completing the Phase 1 extension study analysis of AD-214 and ongoing partnership discussions.

Recent positive in vitro and safety findings have enhanced AD-214's potential, attracting increased partner interest.