RedHill Biopharma sets $6M private placement with warrant upside

RedHill Biopharma Ltd. (Nasdaq: RDHL) has entered into a definitive agreement for a private placement of 8,571,429 American Depositary Shares at $0.70 per ADS, with expected gross proceeds of approximately $6 million before fees and expenses.

The offering also includes two series of warrants, each to purchase up to 8,571,429 ADSs. Series A-1 warrants carry an exercise price of $0.86 per ADS, are immediately exercisable, and expire five years after the registration effectiveness date. Series A-2 warrants have an exercise price of $0.70 per ADS, are immediately exercisable, and expire 18 months after the effectiveness date. If both warrant series are exercised in full on a cash basis, the company could receive up to approximately $13.4 million in additional gross proceeds, bringing the total potential raise to up to $19.4 million. The company cautioned that no assurance exists that any warrants will be exercised.

The placement is expected to close on June 22, 2026, subject to customary closing conditions. H.C. Wainwright & Co. is acting as exclusive placement agent.

RedHill stated it intends to use a portion of the net proceeds to support a potential strategic product acquisition, with the remainder allocated to working capital, research and development, and general corporate purposes. The company noted that no definitive acquisition agreement has been executed and that any such transaction remains subject to further conditions.

The securities were offered under Section 4(a)(2) of the Securities Act of 1933 and have not been registered under U.S. securities laws. RedHill has agreed to file a resale registration statement covering the securities issued in the offering.

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