RedHill Biopharma closes $6M private placement with warrant upside

RedHill Biopharma Ltd. (NASDAQ: RDHL) announced the closing of a private placement that raised approximately $6 million in upfront gross proceeds, with the potential for up to an additional $13.4 million if all warrants are exercised in full.

The offering involved the sale of 8,571,429 American Depositary Shares (ADSs), or ADS equivalents, at a combined purchase price of $0.70 per ADS. Each ADS represents 10,000 ordinary shares of the company. The placement also included two series of warrants, each covering up to 8,571,429 ADSs.

The Series A-1 warrants carry an exercise price of $0.86 per ADS, are immediately exercisable, and expire five years after the effectiveness date of a planned resale registration statement. The Series A-2 warrants have an exercise price of $0.70 per ADS, are also immediately exercisable, and carry an 18-month term from the same effectiveness date.

According to the company's statement, the upfront proceeds are intended to support near-term liquidity and a potential acquisition of commercial-stage, revenue-generating pharmaceutical assets. The company noted that no definitive acquisition agreement has been signed and the potential transaction remains subject to conditions, with no assurance it will be completed.

H.C. Wainwright & Co. acted as the exclusive placement agent for the offering. The $6 million figure represents gross proceeds before placement agent fees and other offering expenses.

The securities were offered under Section 4(a)(2) of the Securities Act of 1933 and/or Regulation D and have not been registered under federal or state securities laws. The company has agreed to file a resale registration statement covering the securities issued in the placement.

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