RedHill Biopharma Announces Closing of Concurrent Public Offering and Registered Direct Offering of its American Depositary Shares and Warrants and Partial Exercise of the Option of Underwriters
TEL-AVIV, Israel, Dec. 27, 2016 (GLOBE NEWSWIRE) -- RedHill Biopharma Ltd. (RDHL) (RDHL) ("RedHill" or the "Company"), a biopharmaceutical company primarily focused on the development and commercialization of late clinical-stage, proprietary, orally-administered, small molecule drugs for gastrointestinal and inflammatory diseases and cancer, today announced the closing of its previously announced underwritten public offering and its concurrent registered direct offering of American Depositary Shares ("ADSs") and warrants to purchase ADSs for aggregate gross proceeds, from both offerings combined, before deducting underwriting discounts and commissions, placement agent fees and other offering expenses, of approximately $38 million.
The underwritten public offering was for a total number of 2,250,000 ADSs, each representing ten of its ordinary shares, and warrants to purchase 1,125,000 ADSs, with gross proceeds of approximately $23 million. The concurrent registered direct offering was for a total number of 1,463,415 ADSs and warrants to purchase 731,708 ADSs with gross proceeds of approximately $15 million. Aggregate gross proceeds from both offerings combined totaled approximately $38 million.
The price in both offerings was $10.25 for a fixed combination of one ADS and a warrant to purchase 0.5 of an ADS. The warrants in both offerings have a per ADS exercise price of $13.33 and have a term of three years.
In addition, the Company announced that the underwriters exercised their option in part and purchased warrants to purchase 168,750 ADSs for a purchase price of $0.0047 per warrant. Following the partial exercise of the option by the underwriters, the underwriters have the 30-day option to purchase up to an additional 337,500 ADSs representing 3,375,000 ordinary shares. With this partial exercise, the number issued by the Company in the two offerings aggregates to a total of 3,713,415 ADSs, each representing ten of its ordinary shares, and warrants to purchase 2,025,458 ADSs.
Immediately following the closing of both the underwritten public offering and the registered direct offering, the number of outstanding ordinary shares of the Company is 164,974,234 (equivalent to approximately 16,497,423 ADS), excluding possible exercise of the warrants issued in either offering and excluding possible exercise by the underwriters of their option to purchase up to an additional 337,500 ADSs.
EMC2 Fund Ltd participated in the registered direct offering. Investors in the public offering included, among others, Sabby Management, LLC, DAFNA Capital Management, Rosalind Advisors, Inc., Koramic Holding, Lincoln Park Capital, Nexthera Capital LP and others.
Roth Capital Partners acted as the sole book-running manager and Echelon Wealth Partners acted as Canadian manager for the underwritten public offering with respect to sales in Canada. Roth Capital Partners acted as placement agent in the registered direct offering.
The ADSs and warrants were issued pursuant to a shelf registration statement that was previously filed with, and declared effective by, the Securities and Exchange Commission (the "SEC"). A final prospectus supplement related to each of the offerings was filed with the SEC and is available on the SEC`s website located at www.sec.gov.
