|[December 06, 2012]
RedHill Biopharma Announces Successful Completion of $6.5 Million Private Placement
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 an 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
[ Back To TMCnet.com's Homepage ]