RedHill Biopharma to sell 2.14M ADSs at 58.289c in registered direct offering

RedHill Biopharma announced that it has entered into definitive agreements with private investors for the purchase and sale, at a premium, of 2,144,487 of the company’s American Depositary Shares, each ADS representing four hundred ordinary shares, par value NIS 0.01 per share, of the company, and warrants to purchase up to an aggregate of 2,144,487ADSs, at a purchase price of 58.289c per ADS and accompanying warrant, in a registered direct offering. The price per ADS and accompanying warrant represents a premium of 10% over 52.99c, the closing price of the ADSs as reported by the Nasdaq Capital Market on March 28. The warrants will have an exercise price of 75c 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 April 3, subject to the satisfaction of customary closing conditions. No placement agent was used in connection with the offering. The gross proceeds to the company from the offering are expected to be $1.25M, before deducting offering expenses payable by the company. The company intends to use the net proceeds from the offering for general corporate purposes and working capital.