TEL AVIV, Israel--(BUSINESS WIRE)--RedHill Biopharma Ltd. (TASE:RDHL), an Israeli biopharmaceutical company focusing primarily on development and acquisition of late clinical stage, patent-protected, new formulations and combinations of existing drugs, reported the completion of a private placement in a total amount of approximately $6.5 million.
The proceeds will be used to advance the Company’s late clinical stage programs, including a Phase III clinical trial with RHB-104 for the treatment of Crohn’s disease, planned to begin in the first half of 2013, and a Phase II/III trial with RHB-105 for the eradication of H. pylori bacteria, planned to begin in the first quarter of 2013. The Company further plans to commence a Phase IIa clinical trial with RHB-104 for the treatment of Multiple Sclerosis in January 2013.
Participants in the financing included, among others, Company directors Mr. Dan Suesskind (Teva Pharmaceuticals' former CFO) and Dr. Shmuel Cabilly (inventor of the "Cabilly Patents"), Prof. Hezi Bernholz (co-inventor of the cancer drug Doxil®), Koramic Finance Company NV, Marathon Investments Ltd. and the Hebrew University Provident Fund.
Following the financing, the Company’s cash balance increases to approximately $19 million ahead of the Company’s contemplated ADR (American Depository Receipt) listing on NASDAQ. The Company does not plan to raise additional capital as part of the NASDAQ listing process.
The Company's share price in the financing was NIS 4.00 and the investors also received half an option per share. The closing share price on the Tel-Aviv Stock Exchange on December 3, 2012 was NIS 3.89. The Company will allocate 6,481,280 shares and 3,240,640 non-tradable options exercisable over a period of 24 months.
If all options are exercised, the additional proceeds to the Company will be approximately $5 million.
Ori Shilo, RedHill’s Deputy CEO, Finance and Operations, said: “The success of the financing, notwithstanding current market conditions, represents yet another vote of confidence by RedHill’s existing and new investors in the Company’s pipeline of drugs, business model and executive management. RedHill continues to maintain a strong balance sheet with a cash balance of approximately $19 million ahead of the contemplated NASDAQ listing. I would like to take this opportunity to thank our investors for their continuing trust and support.”
About RedHill Biopharma Ltd.:
RedHill Biopharma is an emerging Israeli biopharmaceutical company focused primarily on development of late clinical-stage, patent protected, new formulations and combinations of existing drugs. The Company's current product pipeline includes a once-daily formulation of a leading congestive heart failure and high blood pressure drug, a once-daily formulation of a leading chemotherapy/radiotherapy-induced nausea and vomiting prevention drug, an oral thin film formulation of rizatriptan for the treatment of acute migraine, a combination therapy for the treatment of Crohn's disease as well as Multiple Sclerosis (MS) disease, and a diagnostic test for detection of the MAP bacteria, a combination therapy for the treatment of H. pylori bacteria causing ulcers, and an encapsulated formulation for bowel preparation ahead of certain gastro procedures. The Company's team includes prominent pharmaceutical experts. For more information please visit: www.redhillbio.com.
This Press Release does not constitute an offer or solicitation to acquire and/or sell the Company's securities or to participate in any investment in the Company. Statements in this Press Release that are not historical facts are forward-looking statements based on current expectations of future events and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. All of these forward-looking statements are subject to risks and uncertainties that may change at any time, and, therefore, actual results may differ materially from those expected. All forward-looking statements included in this Press Release are made only as of the date of this Press Release. We assume no obligation to update any written or oral forward-looking statement made by us or on our behalf as a result of new information, future events or other factors.