RedHill Biopharma Ltd (NASDAQ:RDHL) shares are down after the company announced a registered direct offering of 1.3 million American Depositary Shares, each ADS representing four hundred (400) ordinary shares, at a purchase price of $1.35 per ADS (or ADS equivalent), in a registered direct offering.
The company has also entered into a definitive agreement with a certain holder of its existing Class A warrants exercisable for 1.5 million ADSs, in the aggregate, to exercise its warrants at a reduced exercise price of $1.35 per ADS.
The gross proceeds to the company from the transactions are expected to be approximately $3.8 million, which will be used for general working capital, acquisitions, R&D, and general corporate purposes.
The company also announced that opaganib has been awarded a further $1.7 million in U.S. Government funding via a Small Business Innovation Research (SBIR) grant to the company’s development partner, Apogee Biotechnology.
This SBIR grant will support research to further the development of opaganib as a medical countermeasure for gastrointestinal acute radiation syndrome.
The SBIR grant is in addition and complementary to the multimillion-dollar-valued U.S. Government Radiation and Nuclear Countermeasures Program product pipeline development contract awarded to opaganib following its selection by the RNCP for ARS development.
Price Action: RDHL shares are down 22.1% at $1.44 on the last check Friday.
