TEL AVIV, Israel and RALEIGH, N.C. - RedHill Biopharma Ltd. (NASDAQ: NASDAQ:RDHL), a specialty biopharmaceutical company, has struck a deal with private investors for a registered direct offering of its American Depositary Shares (ADSs) and accompanying warrants, expected to raise $1.25 million.
The transaction, set to close on or about Wednesday, involves the sale of 2,144,487 ADSs at $0.58289 each, a 10% premium over the recent closing price on the Nasdaq Capital Market.
Each ADS in this offering represents four hundred ordinary shares of RedHill, with warrants immediately exercisable at $0.75 per ADS and valid for five years post-issuance. This capital raise, achieved without the aid of a placement agent, is earmarked for general corporate purposes and working capital.
The offering is made under a shelf registration statement filed with the Securities and Exchange Commission (SEC) on July 29, 2021, and effective as of August 9, 2021. Investors can obtain the final prospectus supplement and accompanying prospectus from the SEC's website once filed.
RedHill focuses on gastrointestinal and infectious diseases, marketing drugs such as Talicia® for Helicobacter pylori infections and Aemcolo® for travelers' diarrhea. The company's late-stage development pipeline includes treatments for COVID-19, oncology, and other diseases. RedHill also plans to file its 2023 20-F around April 8, 2024.
This press release is for informational purposes only and does not constitute an offer to sell or a solicitation to buy any securities in any jurisdiction where such an offer or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
The information in this article is based on a press release statement from RedHill Biopharma Ltd.
InvestingPro Insights
As RedHill Biopharma Ltd. (NASDAQ: RDHL) engages in a strategic capital raise through a direct offering of ADSs and warrants, potential investors and market observers can glean valuable insights from recent InvestingPro data and analysis. RedHill's current Market Cap stands at approximately $16.33 million, reflecting the company’s scale in the biopharmaceutical industry.
Despite a challenging revenue growth trajectory, with a reported decline of -52.42% over the last twelve months as of Q2 2023, RedHill has managed to maintain a Gross Profit Margin of 42.74% in the same period.
Investors may also be interested in the stock's recent performance, with a notable 14.61% return over the last week. This could signal a potential rebound or increased investor interest following a period of decline. However, the stock has experienced a significant -86.56% price total return over the last year, indicating a longer-term downward trend in its market valuation.
Among the InvestingPro Tips, RedHill is acknowledged for holding more cash than debt on its balance sheet, which may provide some financial flexibility in its operations and potential for future investments.
Yet, it is important to note that analysts anticipate a sales decline in the current year and do not expect the company to be profitable within this timeframe. Moreover, RedHill does not pay a dividend, which may influence the investment decisions of income-focused shareholders.
For investors seeking a comprehensive analysis, there are additional InvestingPro Tips available that could further inform investment decisions. These include insights on the company's cash burn rate, valuation multiples, and stock price volatility. To access these valuable tips and more, visit https://www.investing.com/pro/RDHL and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. Currently, InvestingPro offers 13 more tips for RedHill Biopharma, providing a more detailed investment outlook.
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