Adial Pharmaceuticals to sell 1.42M shares at $2.82 in private placement

Adial Pharmaceuticals entered into definitive agreements for the purchase and sale of an aggregate of 1,418,440 shares of its common stock, series A warrants to purchase up to 1,418,440 shares of common stock and series B warrants to purchase up to 1,418,440 shares of common stock, at a purchase price of $2.82 per share of common stock and accompanying warrants, in a private placement priced at-the-market under Nasdaq rules. The offering is expected to close on or about October 24, 2023, subject to the satisfaction of customary closing conditions. H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering. The series A and the series B warrants will have an exercise price of $2.82 per share and will become exercisable on the effective date of stockholder approval for the issuance of the shares upon exercise of the warrants.The series A warrants will expire five and one-half years from the date of issuance and the series B warrants will expire eighteen months from the date of issuance. The gross proceeds to the Company from the private placement are expected to be approximately $4 million, before deducting the placement agent’s fees and other offering expenses payable by the Company. The Company intends to use the net proceeds for general corporate purposes, including general and administrative expenses, working capital and to support regulatory and clinical activities related to AD04, its lead investigational drug product for the treatment of Alcohol Use Disorder.