–
RedHill Biopharma Ltd. (Nasdaq: RDHL; TASE: RDHL), today announced that it has entered into a definitive agreement with leading healthcare investor OrbiMed Israel Partners Limited Partnership, an affiliate of OrbiMed Advisors LLC, for the sale of RedHill’s American Depository Shares (“ADSs”) and warrants in a private placement transaction (the “Private Placement”) for a total sum of $6.0 million.
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at office@jewishbusinessnews.com.
Thank you.
Proceeds from the financing will be used for general working capital and for research and development related purposes, including the clinical development of RedHill’s lead gastrointestinal programs, RHB-104 for Crohn’s disease and RHB-105 for H. pylori infection, both currently undergoing Phase III studies in the U.S.
RedHill is an emerging Israeli biopharmaceutical company focused primarily on the development and acquisition of late clinical-stage, proprietary formulations and combinations of existing drugs.
The Private Placement is expected to close on or before January 9, 2014, subject to the satisfaction of certain customary closing conditions.
Upon the closing of the Private Placement, in exchange for gross proceeds of $6.0 million, RedHill will issue OrbiMed a total of 631, 580 units, each consisting of one ADSand a warrant to purchase 0.4 of an ADS (“Unit”), at a purchase price of $9.50 per Unit.
RedHill will issue to OrbiMed warrants to purchase 252, 632 ADSs in the aggregate, which will have a three-year term and be exercisable at a price per ADS of $11. For a detailed description of the terms of the Private Placement, please see the Company’s Report on Form 6-K furnished to the SecuritiesSecurities and Exchange Commission (the “SEC”) on December 30, 2013.
