RedHill Biopharma Ltd. priced an underwritten public offering and its concurrent registered direct offering of American depositary shares and warrants to buy ADSs for expected aggregate gross proceeds of about $38 million, before deducting underwriting agent discounts and commissions, placement agent fees and other offering expenses.
The underwritten public offering was for 2,250,000 ADSs, each representing 10 of its ordinary shares, and warrants to buy 1,125,000 ADSs, for expected gross proceeds of about $23 million. The concurrent registered direct offering was for 1,463,415 ADSs and warrants to buy 731,708 ADSs for expected gross proceeds of about $15 million.
RedHill also granted the underwriters in the public offering an option to buy up to 337,500 additional ADSs, and warrants to buy up to 168,750 additional ADSs, or any combination of both.
The price in both offerings is $10.25 for a fixed combination of one ADS and a warrant to buy half of an ADS. The warrants in both offerings will have a per-ADS exercise price of $13.33 and a term of three years.
The offering is expected to close Dec. 27, subject to customary closing conditions.
RedHill intends to use the proceeds from the offerings to fund clinical development programs, for potential acquisitions, to support commercial operations and for general corporate purposes.
Roth Capital Partners is acting as sole book-running manager and Echelon Wealth Partners is acting as Canadian manager for the underwritten public offering with respect to sales in Canada. Roth Capital Partners is also acting as placement agent in the registered direct offering.