RedHill Biopharma Announces $1.25M Direct Offering

TL;DR

RHBP raises $1.25M via direct offering, funds for R&D and working capital.

AI Summary

RedHill Biopharma Ltd. announced on April 2, 2024, a $1.25 million registered direct offering of its ordinary shares. The offering is expected to close on or about April 4, 2024, and is subject to customary closing conditions. The company intends to use the net proceeds for general corporate purposes, including working capital and research and development activities.

Why It Matters

This capital raise provides RedHill Biopharma with funds for its ongoing operations and development, potentially impacting its ability to advance its drug pipeline.

Risk Assessment

Risk Level: medium — Direct offerings can dilute existing shareholders' ownership and may indicate a need for immediate capital, suggesting potential financial pressures.

Key Numbers

• $1.25M — Registered Direct Offering (Capital raised to fund general corporate purposes and R&D.)

Key Players & Entities

• RedHill Biopharma Ltd. (company) — Registrant
• $1.25 million (dollar_amount) — Registered direct offering amount
• April 2, 2024 (date) — Announcement date
• April 4, 2024 (date) — Expected closing date

FAQ

Key Financial Figures

• $1.25 Million — entitled: "RedHill Biopharma Announces $1.25 Million Registered Direct Offering at a Premium
• $0.58289 — f 2,144,487ADSs, at a purchase price of $0.58289 per ADS and accompanying warrant, in a
• $0 — arrant represents a premium of 10% over $0.5299, the closing price of the ADSs as
• $0.75 — warrants will have an exercise price of $0.75 per ADS, will be immediately exercisabl
• $1.25 m — ny from the offering are expected to be $1.25 million, before deducting offering expens

Filing Documents

• zk2431231.htm (6-K) — 27KB
• image00001.jpg (GRAPHIC) — 32KB
• 0001178913-24-001185.txt ( ) — 73KB

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. REDHILL BIOPHARMA LTD. (the "Registrant") Date: April 2, 2024 By: /s/ Dror Ben-Asher Name: Dror Ben-Asher Title: Chief Executive Officer 2 Press Release RedHill Biopharma Announces $1.25 Million Registered Direct Offering at a Premium to Market Price TEL AVIV, ISRAEL & RALEIGH, N.C., April 2, 2024 /PRNewswire/ -- RedHill Biopharma Ltd. (Nasdaq: RDHL ) ("RedHill" or the "Company"), a specialty biopharmaceutical company, today 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 ("ADSs"), each ADS representing four hundred (400) 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 $0.58289 per ADS and accompanying warrant, in a registered direct offering. The price per ADS and accompanying warrant represents a premium of 10% over $0.5299, the closing price of the ADSs as reported by the Nasdaq Capital Market on March 28, 2024. The warrants will have an exercise price of $0.75 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, 2024, 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 $1.25 million, 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. The Company also announces that it plans to file its 2023 20-F on or about April 8, 2024. The securitie

Forward Looking Statements

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 completion of the offering, the satisfaction of customary closing conditions related thereto and 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 regain or maintain compliance 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 ability of the Company to satisfy all conditions precedent to the closing of the offering; the completion of the offering; the intended use of proceeds from the offering; 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

View Full Filing

View this 6-K filing on SEC EDGAR