RDHL - RedHill Biopharma to raise $6M in ADSs offering

2023-03-30 08:20:35 ET

• RedHill Biopharma ( NASDAQ: RDHL ) entered into a definitive agreement for the purchase and sale of 1.5M ADSs; each ADS represents 400 ordinary shares, series A warrants to purchase up to 1.5M ADSs and series B warrants to purchase up to 1.5M ADSs at a purchase price of $4/ADS and associated warrants, in a registered direct offering.
• The series A warrants have an exercise price of $4.75/ADS, are exercisable immediately and have a 5-years term post issuance, and the series B warrants have an exercise price of $4.00/ADS, are exercisable immediately and have a 9-month term post issuance.
• Gross proceeds are expected to be $6M; net proceeds are to be used for general working capital, acquisitions, research and development, and general corporate purposes.
• Offering is expected to close on or about Apr. 3, 2023.
• Also, RedHill agreed that certain existing warrants to purchase up to an 330,106 ADSs at an exercise price of $59.20/share and a termination date of Nov.11, 2027 will be amended, effective on offer closing.
• Amended warrants will have a reduced exercise price of $4.75/share and a termination date of five years post offer closing.
• Shares trading 2.3% higher premarket.

For further details see: