RedHill Biopharma Ltd. closed its underwritten public offering and its concurrent registered direct offering of American depositary shares and warrants to buy ADSs with gross proceeds of about $38 million, before deducting underwriting discounts and commissions, placement agent fees and other offering expenses.
The underwritten public offering was for 2,250,000 ADSs, each representing 10 ordinary shares of the company, and warrants to buy 1,125,000 ADSs, with gross proceeds of about $23 million. The direct offering was for 1,463,415 ADSs and warrants to buy 731,708 ADSs with gross proceeds of about $15 million.
The price in both offerings was $10.25 for a fixed combination of one ADS and a warrant to buy half of an ADS. The warrants in both offerings have a per-ADS exercise price of $13.33 and a term of three years.
Underwriters in the offering partially exercised their option and acquired warrants to buy 168,750 ADSs for a purchase price of 0.47 cent per warrant. After the partial exercise, the underwriters have the option to buy 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 10 of its ordinary shares, and warrants to purchase 2,025,458 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 served 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.