RedHill Biopharma sells 10M ADSs at 80c in registered direct offering

RedHill Biopharma announced that it has entered into definitive agreements with institutional investors for the purchase and sale of 10M of the company’s American Depositary Shares, each ADS representing 400 ordinary shares, at a purchase price of 80c per ADS, in a registered direct offering. In addition, in a concurrent private placement, the company will issue unregistered warrants to purchase up to 10M ADSs. The warrants will have an exercise price of $1.00 per ADS, will be immediately exercisable upon issuance and have a term of five years following the issuance date. The closing of the offering is expected to occur on or about January 29, subject to the satisfaction of customary closing conditions. H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering. The gross proceeds to the company from the offering are expected to be $8M, before deducting the placement agent’s fees and other offering expenses payable by the company. The company intends to use the net proceeds from the offering for general working capital, acquisitions, research and development, and general corporate purposes.