CVI Investments Takes 700M Share Stake in RedHill Biopharma

TL;DR

**CVI Investments just grabbed 700M shares of RedHill Biopharma, big institutional play!**

AI Summary

CVI Investments, Inc., a Cayman Islands-based entity, reported beneficial ownership of 700,000,000 ordinary shares of RedHill Biopharma Ltd. as of January 25, 2024. This represents a significant stake, indicating CVI Investments has substantial shared voting power over RedHill's stock. This matters to investors because such a large holding by an institutional investor can influence company decisions and stock performance, signaling either strong confidence or potential for future strategic moves.

Why It Matters

A major institutional investor, CVI Investments, now holds a substantial portion of RedHill Biopharma's shares, which could impact future corporate governance and strategic direction.

Risk Assessment

Risk Level: medium — While a large institutional investment can be a positive signal, the sheer size of the holding by CVI Investments could also lead to significant price volatility if they decide to alter their position.

Analyst Insight

Investors should monitor future filings from CVI Investments, Inc. regarding RedHill Biopharma Ltd. for any changes in their position or indications of activist intent, as such a large stake could significantly influence the company's direction or stock price.

Key Numbers

• 700,000,000 — Shares Beneficially Owned (Represents the shared voting power of CVI Investments, Inc. in RedHill Biopharma Ltd.)
• January 25, 2024 — Date of Event (The date that triggered the requirement for this SC 13G filing.)
• 0001553846 — RedHill Biopharma CIK (Central Index Key for RedHill Biopharma Ltd.)
• 757468202 — CUSIP Number (Unique identification number for RedHill Biopharma Ltd.'s Ordinary Shares.)

Key Players & Entities

• CVI Investments, Inc. (company) — reporting person and beneficial owner
• RedHill Biopharma Ltd. (company) — the issuer of the securities
• Cayman Islands (person) — place of organization for CVI Investments, Inc.
• Heights Capital Management Inc. (company) — group member

Forward-Looking Statements

• CVI Investments, Inc. will likely seek to influence RedHill Biopharma Ltd.'s strategic decisions given their substantial shared voting power. (CVI Investments, Inc.) — medium confidence, target: Within the next 12-24 months

FAQ

Filing Documents

• tm244732d2_sc13g.htm (SC 13G) — 57KB
• 0001104659-24-009235.txt ( ) — 58KB

(a). Name of Person Filing

Item 2(a). Name of Person Filing This statement is filed by the entities listed below, who are collectively referred to herein as “Reporting Persons,” with respect to the Ordinary Shares of the Company, NIS 0.01 par value per share (the “Shares”). (i) CVI Investments, Inc. (ii) Heights Capital Management, Inc.

(b). Address of Principal Business Office or, if none, Residence

Item 2(b). Address of Principal Business Office or, if none, Residence The address of the principal business office of CVI Investments, Inc. is: P.O. Box 309GT Ugland House South Church Street George Town Grand Cayman KY1-1104 Cayman Islands The address of the principal business office of Heights Capital Management, Inc. is: 101 California Street, Suite 3250 San Francisco , California 94111

(c). Citizenship

Item 2(c). Citizenship Citizenship is set forth in Row 4 of the cover page for each Reporting Person hereto and is incorporated herein by reference for each such Reporting Person.

(d) Title of Class of Securities

Item 2(d) Title of Class of Securities Ordinary Shares, NIS 0.01 par value per share

(e) CUSIP Number

Item 2(e) CUSIP Number 757468202. The CUSIP Number applies to the American Depositary Shares, each of which represents four hundred (400) Shares. CUSIP No: 757468202 Item 3. If this statement is filed pursuant to §§240.13d-1(b) or 240.13d-2(b) or (c), check whether the person filing is a: (a) Broker or dealer registered under Section 15 of the Act (15 U.S.C. 78o). (b) Bank as defined in Section 3(a)(6) of the Act (15 U.S.C. 78c). (c) Insurance company as defined in Section 3(a)(19) of the Act (15 U.S.C. 78c). (d) Investment company registered under Section 8 of the Investment Company Act of 1940 (15 U.S.C. 80a-8). (e) An investment adviser in accordance with §240.13d-1(b)(1)(ii)(E); (f) An employee benefit plan or endowment fund in accordance with §240.13d-1(b)(1)(ii)(F); (g) A parent holding company or control person in accordance with §240.13d-1(b)(1)(ii)(G); (h) A savings association as defined in Section 3(b) of the Federal Deposit Insurance Act (12 U.S.C. 1813); (i) A church plan that is excluded from the definition of an investment company under Section 3(c)(14) of the Investment Company Act of 1940 (15 U.S.C. 80a-3); (j) A non-U.S. institution in accordance with §240.13d-1(b)(1)(ii)(J); (k) Group, in accordance with Rule 13d-1(b)(1)(ii)(K). If filing as a non-U.S. institution in accordance with §240.13d-1(b)(1)(ii)(J), please specify the type of institution: ________________

Ownership

Item 4. Ownership Provide the following information regarding the aggregate number and percentage of the class of securities of the issuer identified in Item 1. The information required by Items 4(a) – (c) is set forth in Rows 5 – 11 of the cover page for each Reporting Person hereto and is incorporated herein by reference for each such Reporting Person. The number of Shares reported as beneficially owned consists of 700,000,000 Shares (represented by 1,750,000 American Depositary Shares). The Company’s Prospectus Supplement (to Prospectus dated August 9, 2021, Registration No. 333-258259), filed on January 26, 2024, indicates there were 11,881,211,000 Shares outstanding as of the completion of the offering of the Shares referred to therein. Heights Capital Management, Inc., which serves as the investment manager to CVI Investments, Inc., may be deemed to be the beneficial owner of all Shares owned by CVI Investments, Inc. Each of the Reporting Persons hereby disclaims any beneficial ownership of any such Shares, except for their pecuniary interest therein. CUSIP No: 757468202

Ownership of Five Percent or Less of a Class

Item 5. Ownership of Five Percent or Less of a Class If this statement is being filed to report the fact that as of the date hereof the reporting person has ceased to be the beneficial owner of more than five percent of the class of securities, check the following:

Ownership of More than Five Percent on Behalf of Another Person

Item 6. Ownership of More than Five Percent on Behalf of Another Person Not applicable.

Identification and Classification of the Subsidiary Which

Item 7. Identification and Classification of the Subsidiary Which Acquired the Security Being Reported on by the Parent Holding Company or Control Person Not applicable.

Identification and Classification of Members of the Group

Item 8. Identification and Classification of Members of the Group Not applicable.

Notice of Dissolution of Group

Item 9. Notice of Dissolution of Group Not applicable.

Certification

Item 10. Certification By signing below each of the undersigned certifies that, to the best of its knowledge and belief, the securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect. CUSIP No: 757468202

SIGNATURES

SIGNATURES After reasonable inquiry and to the best of its knowledge and belief, each of the undersigned certifies that the information with respect to it set forth in this statement is true, complete, and correct. Dated: February 1, 2024 CVI INVESTMENTS, INC. HEIGHTS CAPITAL MANAGEMENT, INC. By: Heights Capital Management, Inc. pursuant to a Limited Power of Attorney, a copy of which is attached as Exhibit I hereto By: /s/ Brian Sopinsky Name: Brian Sopinsky Title: Secretary By: /s/ Brian Sopinsky Name: Brian Sopinsky Title: Secretary CUSIP No: 757468202 EXHIBIT INDEX EXHIBIT DESCRIPTION I Limited Power of Attorney II Joint Filing Agreement CUSIP No: 757468202 Exhibit I LIMITED POWER OF ATTORNEY THIS LIMITED POWER OF ATTORNEY given on the 16th day of July, 2015 by CVI Investments, Inc. (hereinafter called "the Company"), whose Registered Office is situated at PO Box 309GT, Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands. WHEREAS, by agreement dated July 16, 2015, by and between the Company and Heights Capital Management, Inc., the Company expressly authorized Heights Capital Management, Inc. to enter into transactions in certain designated areas as defined in the Discretionary Investment Management Agreement attached hereto marked "Appendix l." NOW THIS DEED WITNESSETH that William Walmsley, Director of the Company, hereby appoints on behalf of the Company the firm of HEIGHTS CAPITAL MANAGEMENT, INC., which through its officers, directors and employees is hereby formally granted limited power of attorney for the purpose of entering into transactions on behalf and for the account of the Company; and to take all actions on behalf of the Company as may be necessary to consummate such transactions, including but not limited to making, negotiating; signing, endorsing, executing, acknowledging and delivering in the name of the Company all applications, contracts, agreements

View Full Filing

View this SC 13G filing on SEC EDGAR