Intracoastal Capital Takes 9.99% Stake in RedHill Biopharma

TL;DR

**Intracoastal Capital just bought nearly 10% of RedHill Biopharma, signaling a bullish move.**

AI Summary

Intracoastal Capital, LLC and its managing members, Mitchell P. Kopin and Daniel B. Asher, reported acquiring a significant stake in RedHill Biopharma Ltd. on January 25, 2024. They now beneficially own 1,000,000 ordinary shares, which represents 9.99% of the company's outstanding shares. This matters to investors because a large institutional investor taking a nearly 10% stake can signal confidence in the company's future, potentially attracting more investor interest and influencing stock performance.

Why It Matters

A substantial investment by an institutional fund like Intracoastal Capital can be seen as a vote of confidence, potentially boosting investor sentiment and the stock price of RedHill Biopharma.

Risk Assessment

Risk Level: low — This filing indicates a significant investment by an institutional entity, which is generally a positive signal for the company.

Analyst Insight

A smart investor would view this as a positive signal, potentially indicating a deeper dive into RedHill Biopharma's fundamentals and future prospects, as a large institutional investor has taken a significant position.

Key Numbers

• 1,000,000 — Ordinary Shares Beneficially Owned (Represents the total number of RedHill Biopharma ordinary shares held by the reporting persons.)
• 9.99% — Percentage of Class (This is the percentage of RedHill Biopharma's ordinary shares that Intracoastal Capital and its group now beneficially own.)
• January 25, 2024 — Date of Event (The specific date when the reporting persons' ownership crossed the threshold requiring this SC 13G filing.)
• 400 — Ordinary Shares per ADS (Each American Depositary Share (ADS) of RedHill Biopharma represents 400 ordinary shares.)

Key Players & Entities

• Intracoastal Capital, LLC (company) — reporting person, institutional investor
• Mitchell P. Kopin (person) — reporting person, group member
• Daniel B. Asher (person) — group member
• RedHill Biopharma Ltd. (company) — subject company, issuer of securities
• 03 Life Sciences (company) — organization name associated with RedHill Biopharma

Forward-Looking Statements

• RedHill Biopharma's stock price may see increased investor interest due to this significant institutional stake. (RedHill Biopharma Ltd.) — medium confidence, target: Q1 2024
• Intracoastal Capital may seek to engage with RedHill Biopharma's management given their substantial ownership. (Intracoastal Capital, LLC) — low confidence, target: Q2 2024

FAQ

Filing Documents

• ea192753-13gintra_redhill.htm (SC 13G) — 57KB
• ea192753ex99-1_redhill.htm (EX-99.1) — 3KB
• 0001213900-24-009636.txt ( ) — 62KB

If this statement is filed pursuant

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: Not applicable. Page 5 of 7 Item 4. Ownership. (a) and (b): (i) Immediately following the execution of the Securities Purchase Agreement with the Issuer on January 25, 2024 (the “ SPA ”) (as disclosed in the Form 6-K filed by the Issuer with the Securities and Exchange Commission on January 26, 2024), each of the Reporting Persons may have been deemed to have beneficial ownership of 1,250,000 Ordinary Shares to be issued to Intracoastal at the closing of the transaction contemplated by the SPA, and all such Ordinary Shares in the aggregate represent beneficial ownership of approximately 6.0% of the Ordinary Shares, based on (1) 19,639,793 Ordinary Shares outstanding prior to the execution of the SPA as reported to the Reporting Persons by the Issuer, plus (2) 1,250,000 Ordinary Shares to be issued to Intracoastal at the closing of the transaction contemplated by the SPA. The foregoing excludes 1,250,000 Ordinary Shares issuable upon exercise of a warrant to be issued to Intracoastal at the closing of the transaction contemplated by the SPA (the “ Intracoastal Warrant ”) because the Intracoastal Warrant contains a blocker provision under which the holder thereof does not have the right to exercise the Intracoastal Warrant to the extent (but only to the extent) that such exercise would result in beneficial ownership by the holder thereof, together with the holder’s affiliates, and any other persons acting as a group together with the holder or any of the holder’s affiliates, of more than 4.99% of the Ordinary Shares. Without such blocker provision, each of the Reporting Persons may have been deemed to have beneficial ownership of 2,500,000 Ordinary Shares. (ii) As of the close of business on February 2, 2024, each of the Reporting Persons may have been deemed to have beneficial ownership of 1,

Certification

Item 10. Certification By signing below I certify that, to the best of my 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, other than activities solely in connection with a nomination under §240.14a-11. Page 6 of 7 SIGNATURE After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. Date: February 2, 2024 /s/ Mitchell P. Kopin Mitchell P. Kopin /s/ Daniel B. Asher Daniel B. Asher Intracoastal Capital LLC By: /s/ Mitchell P. Kopin Mitchell P. Kopin, Manager Page 7 of 7

View Full Filing

View this SC 13G filing on SEC EDGAR