RedHill Biopharma Strengthens Cash Balance, Settles Obligations and Removes Talicia® Lien
RedHill Biopharma (Nasdaq: RDHL) has announced a significant financial restructuring through a Global Termination Agreement with Movantik Acquisition Co., Valinor Pharma, , and HCR Redhill SPV, This agreement has resulted in:
1. A $9.9 million cash influx
2. Full control over an additional $0.74 million in a restricted account
3. An increase of $12.2 million in liabilities
4. A net balance sheet reduction of $2.3 million
5. Removal of the existing lien against Talicia®
6. Restoration of control over cash collections to RedHill
This restructuring aims to strengthen RedHill's cash position, enhance cash management, and allow the company to focus on R&D and commercial activities for future growth.
RedHill Biopharma (Nasdaq: RDHL) ha annunciato una significativa ristrutturazione finanziaria attraverso un Accordo di Risoluzione Globale con Movantik Acquisition Co., Valinor Pharma e HCR Redhill SPV. Questo accordo ha portato a:
1. Un afflusso di cassa di 9,9 milioni di dollari
2. Pieno controllo su ulteriori 0,74 milioni di dollari in un conto vincolato
3. Aumento di 12,2 milioni di dollari in passività
4. Una riduzione netta del bilancio di 2,3 milioni di dollari
5. Rimozione del pegno esistente su Talicia®
6. Ripristino del controllo sulle riscossioni di cassa per RedHill
Questa ristrutturazione mira a rafforzare la posizione di cassa di RedHill, migliorare la gestione della liquidità e consentire all'azienda di concentrarsi sulle attività di R&S e commerciali per una crescita futura.
RedHill Biopharma (Nasdaq: RDHL) ha anunciado una reestructuración financiera significativa a través de un Acuerdo de Terminación Global con Movantik Acquisition Co., Valinor Pharma y HCR Redhill SPV. Este acuerdo ha dado lugar a:
1. Un incremento de efectivo de 9,9 millones de dólares
2. Control total sobre un adicional de 0,74 millones de dólares en una cuenta restringida
3. Un aumento de 12,2 millones de dólares en pasivos
4. Una reducción neta del balance de 2,3 millones de dólares
5. Eliminación del gravamen existente sobre Talicia®
6. Restauración del control sobre las cobranzas de efectivo a RedHill
Esta reestructuración tiene como objetivo fortalecer la posición de efectivo de RedHill, mejorar la gestión de efectivo y permitir a la empresa enfocarse en actividades de I+D y comerciales para el crecimiento futuro.
레드힐 바이오파마(Nasdaq: RDHL)는 모반틱 인수 주식회사(Movantik Acquisition Co.), 발리노르 파마(Valinor Pharma) 및 HCR 레드힐 SPV와의 글로벌 해지 계약을 통해 중요한 재정 구조 조정을 발표했습니다. 이 계약은 다음과 같은 결과를 가져왔습니다:
1. 990만 달러의 현금 유입
2. 제한 계좌에서 추가 74만 달러에 대한 완전한 통제
3. 1,220만 달러의 부채 증가
4. 230만 달러의 순 자산 감소
5. Talicia®에 대한 기존 담보권 삭제
6. 레드힐에 대한 현금 수금 통제 복원
이 구조 조정은 레드힐의 현금 상태를 강화하고 현금 관리를 개선하며, 회사가 연구 개발 및 상업적 활동에 집중하여 미래의 성장을 도모하도록 허용하는 것을 목표로 합니다.
RedHill Biopharma (Nasdaq: RDHL) a annoncé une restructuration financière significative par le biais d'un Accord de Résiliation Global avec Movantik Acquisition Co., Valinor Pharma et HCR Redhill SPV. Cet accord a abouti à :
1. Un afflux de liquidités de 9,9 millions de dollars
2. Le contrôle total sur un montant supplémentaire de 0,74 million de dollars sur un compte réglementé
3. Une augmentation de 12,2 millions de dollars de dettes
4. Une réduction nette du bilan de 2,3 millions de dollars
5. La suppression de la garantie existante sur Talicia®
6. La restauration du contrôle des encaissements de trésorerie à RedHill
Cette restructuration vise à renforcer la situation de trésorerie de RedHill, à améliorer la gestion de la trésorerie et à permettre à l'entreprise de se concentrer sur la R&D et les activités commerciales pour une croissance future.
RedHill Biopharma (Nasdaq: RDHL) hat eine umfassende finanzielle Umstrukturierung durch eine globale Beendigungsvereinbarung mit Movantik Acquisition Co., Valinor Pharma und HCR Redhill SPV angekündigt. Diese Vereinbarung führte zu:
1. Einem Kapitalzufluss von 9,9 Millionen Dollar
2. Vollständiger Kontrolle über zusätzliche 0,74 Millionen Dollar auf einem eingeschränkten Konto
3. Einem Anstieg von 12,2 Millionen Dollar an Verbindlichkeiten
4. Einer Netto-Bilanzreduzierung von 2,3 Millionen Dollar
5. Der Aufhebung der bestehenden Grundschuld auf Talicia®
6. Der Wiederherstellung der Kontrolle über die Barzahlungen für RedHill
Diese Umstrukturierung zielt darauf ab, die Liquiditätsposition von RedHill zu stärken, das Cash-Management zu verbessern und dem Unternehmen zu ermöglichen, sich auf Forschung und Entwicklung sowie kommerzielle Aktivitäten für zukünftiges Wachstum zu konzentrieren.
- Received $9.9 million in cash
- Gained control over $0.74 million in a restricted account
- Net balance sheet reduction of $2.3 million
- Removal of lien against Talicia®
- Regained control over cash collections
- Elimination of encumbrances related to previous Movantik divestment and Credit Agreements
- Increase of $12.2 million in liabilities
RedHill Biopharma's recent agreement significantly bolsters its financial health. The injection of approximately
The removal of encumbrances linked to the previous Movantik divestment and Credit Agreements is a strategic move that frees up RedHill Biopharma to focus on its core activities—R&D and commercialization. This could catalyze a shift in the company's growth trajectory, making it more appealing to both existing and potential investors. By restoring control over cash collections, RedHill can redirect resources more efficiently into high-potential projects, potentially accelerating the timeline for bringing new products to market. For retail investors, this operational clarity and renewed focus on growth signal a positive outlook for future returns.
While the core news pertains to financial restructuring, the implications for RedHill's technology and product development are noteworthy. By freeing up financial resources and reducing liabilities, the company can reallocate funds toward technological advancements in its R&D efforts. This can lead to more innovative solutions in the biopharmaceutical space, enhancing RedHill's competitive edge. For investors, this strategic financial maneuvering could translate into significant technological and operational efficiencies, ultimately leading to better product offerings and market positioning.
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Razi Ingber, RedHill's Chief Financial Officer, said: "We are very pleased to reach this smooth conclusion, which strengthens RedHill's cash position and greatly enhances our ability to manage our cash. The Agreement eliminates substantially all encumbrances related to the previous Movantik divestment and Credit Agreements, allowing us to better focus on our R&D and commercial activities and return the Company to a growth mode. This is a new chapter for RedHill."
About RedHill Biopharma
RedHill Biopharma Ltd. (Nasdaq: RDHL) is a specialty biopharmaceutical company primarily focused on gastrointestinal and infectious diseases. RedHill promotes the gastrointestinal drugs Talicia®, for the treatment of Helicobacter pylori (H. pylori) infection in adults[1], and Aemcolo®, for the treatment of travelers' diarrhea in adults[2]. RedHill's key clinical late-stage development programs include: (i) opaganib (ABC294640), a first-in-class oral broad-acting, host-directed SPHK2 selective inhibitor with potential for pandemic preparedness, targeting multiple indications with a
More information about the Company is available at www.redhillbio.com / X.com/RedHillBio.
Forward Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and may discuss investment opportunities, stock analysis, financial performance, investor relations, and market trends. Such statements, including, but not limited to, statements regarding the intended use of net proceeds from the offering, 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 risk that the Company will not comply with the listing requirements of the Nasdaq Capital Market ("Nasdaq") to remain listed for trading on Nasdaq, the addition of new revenue generating products, out-licensing of the Company's development pipeline assets, timing of opaganib's development for Acute Radiation Syndrome, non-dilutive development funding from RHB-107 and its inclusion in a key platform study. 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, market and other conditions, the risk that the addition of new revenue generating products or out-licensing transactions will not occur; the risk that acceptance onto the RNCP Product Development Pipeline will not guarantee ongoing development or that any such development will not be completed or successful; the risk that the FDA does not agree with the Company's proposed development plans for opaganib for any indication, the risk that observations from preclinical studies are not indicative or predictive of results in clinical trials; the risk that the FDA pre-study requirements will not be met and/or that the Phase 3 study of RHB-107 in COVID-19 outpatients will not be approved to commence or if approved, will not be completed or, should that be the case, that we will not be successful in obtaining alternative non-dilutive development funding for RHB-107, the risk that HB-107's late-stage development for non-hospitalized COVID-19 will not benefit from the resources redirected from the terminated RHB-204 Phase 3 study, 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:
Adi Frish
Chief Corporate & Business Development Officer
RedHill Biopharma
+972-54-6543-112
adi@redhillbio.com
Category: Commercial
[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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SOURCE RedHill Biopharma Ltd.
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