RedHill Biopharma Announces Definitive Agreement for Up To $6 Million Private Placement with a Single Investor
RedHill Biopharma Ltd. (Nasdaq: RDHL) announced a private placement agreement with a single investor for a $6 million convertible promissory note. This issuance will convert into American Depositary Shares (ADS) and comes with warrants, potentially enhancing the company's capital structure. The funding will be disbursed in three tranches of $2 million, $1 million, and $3 million, with the first tranche available at closing. RedHill plans to use the proceeds for general working capital, acquisitions, and research and development. The warrants will have an exercise price of $0.21 and a three-year term.
- Secured $6 million through a private placement to strengthen financial resources.
- Proceeds intended for working capital, acquisitions, and R&D, promoting growth.
- Convertible note could lead to shareholder dilution upon conversion and exercise of warrants.
Gross proceeds to the Company under the promissory note will be up to
The number of warrants to be issued will be one-fourth of the value of each tranche divided by
RedHill intends to use the net proceeds from this placement for general working capital, acquisitions, research and development and general corporate purposes.
The convertible promissory note and warrants described above were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the "Act"), and Regulation D promulgated thereunder and, along with the ADSs underlying the promissory note and the warrants, have not been registered under the Act, or applicable state securities laws. Accordingly, the warrants and underlying ADSs may not be offered or sold in
This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
About
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be preceded by the words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential" or similar words and include statements regarding the expected tranches of the convertible note and the proposed use of proceeds. Forward-looking statements are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company's control and cannot be predicted or quantified, and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, the risk that the growth in prescriptions will not continue and the addition of new generating products will not occur, that we will not be successful in obtaining non-dilutive development funding for RHB-107, that we will not be successful in increasing sales of our commercial products, including due to market conditions, that the Phase 2/3 COVID-19 study for RHB-107 may not be successful and, even if successful, such studies and results may not be sufficient for regulatory applications, including emergency use or marketing applications, and that additional COVID-19 studies for opaganib and RHB-107 are likely to be required, as well as risks and uncertainties associated with the risk that the Company will not successfully commercialize its products; as well as risks and uncertainties associated with (i) the initiation, timing, progress and results of the Company's research, manufacturing, pre-clinical studies, clinical trials, and other therapeutic candidate development efforts, and the timing of the commercial launch of its commercial products and ones it may acquire or develop in the future; (ii) the Company's ability to advance its therapeutic candidates into clinical trials or to successfully complete its pre-clinical studies or clinical trials or the development of a commercial companion diagnostic for the detection of MAP; (iii) the extent and number and type of additional studies that the Company may be required to conduct and the Company's receipt of regulatory approvals for its therapeutic candidates, and the timing of other regulatory filings, approvals and feedback; (iv) the manufacturing, clinical development, commercialization, and market acceptance of the Company's therapeutic candidates and Talicia®; (v) the Company's ability to successfully commercialize and promote Talicia® and Aemcolo®; (vi) the Company's ability to establish and maintain corporate collaborations; (vii) the Company's ability to acquire products approved for marketing in the
Company contact: Chief Corporate and Business Development Officer +972-54-6543-112 |
Category: Financials
[1] Talicia® (omeprazole magnesium, amoxicillin and rifabutin) is indicated for the treatment of H. pylori infection in adults. For full prescribing information see: www.Talicia.com.
[2] Aemcolo® (rifamycin) is indicated for the treatment of travelers' diarrhea caused by noninvasive strains of Escherichia coli in adults. For full prescribing information see: www.aemcolo.com.
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What is the purpose of RedHill Biopharma's recent $6 million funding announcement on March 8, 2023?
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