RedHill Biopharma Strikes $6M ADS Private Placement with $13.4M Warrant Upside
RDHL•RedHill Biopharma will sell 8,571,429 ADSs and matching series A-1 and A-2 warrants at $0.70 per ADS, raising $6 million upfront with potential additional proceeds of $13.4 million if warrants are fully exercised. Net proceeds will support a potential strategic product acquisition, R&D, working capital and general corporate purposes.
1. Private Placement Overview
RedHill Biopharma has entered a definitive agreement to sell an aggregate of 8,571,429 American Depositary Shares and equal series A-1 and A-2 warrants at a combined purchase price of $0.70 per ADS and warrant package, generating approximately $6 million of gross proceeds before fees and expenses.
2. Warrant Structure and Terms
Series A-1 warrants carry an exercise price of $0.86 per ADS and are exercisable immediately for five years, while series A-2 warrants have a $0.70 exercise price and expire in 18 months; full exercise of both series would yield up to $13.4 million.
3. Allocation of Net Proceeds
The company intends to allocate net proceeds primarily to support a potential strategic product acquisition, with the balance funding research and development programs, working capital needs and general corporate purposes.
4. Closing Date and Conditions
The private placement is expected to close on June 22, 2026, subject to customary closing conditions and before deducting placement agent fees and other offering expenses.
