** Shares of Australia's Alterity Therapeutics ATH.AX fall as much as 8.3% to A$0.011, on track for a third consecutive session of decline

** Stock hits its lowest level since Jan. 31

** Biotechnology co raises A$40.0 mln ($25.02 mln) in a placement at an issue price of A$0.011 per share

** Issue price represents a discount of 8.3% to stock's last close

** Co says funds will be used primarily to advance development of ATH434, a small molecule drug candidate for Parkinsonian disorders

** Stock up 43.8% this year, as of 0159 GMT

($1 = 1.5990 Australian dollars)

(Reporting by Roshan Thomas in Bengaluru)

((Roshan.Thomas@thomsonreuters.com))