aibioRedhill Biopharma signs $6 million private placement, up to $19.4 million with warrants
Tickers RDHL
Redhill Biopharma agreed on June 18, 2026 to sell 8,571,429 ADSs at $0.70 each with two series of warrants. The upfront money is about $6 million, and the warrants add about $13.4 million only if they are exercised for cash, which the company says is not assured.
Key facts
- Company
- Redhill Biopharma Ltd. (NASDAQ: RDHL)
- News type
- Financings
- Primary source
- Redhill Biopharma Ltd. 6-K (2026-06-18)
The placement
Redhill Biopharma Ltd. signed a securities purchase agreement on June 18, 2026 with an accredited investor. The company agreed to sell 8,571,429 American Depositary Shares, or pre-funded warrants in their place, at a combined price of $0.70 per ADS with accompanying warrants. Each ADS represents 10,000 ordinary shares. The private placement is expected to close on June 22, 2026, subject to customary conditions.
H.C. Wainwright & Co. is the exclusive placement agent. The company agreed to pay it a cash fee of 7.5% of gross proceeds and to reimburse certain expenses. It also issued the agent or its designees warrants for up to 514,286 ADSs at $0.875 per ADS, with a five-year term from the effectiveness date. The filing names no counsel. Gross proceeds are expected to be about $6 million before those fees and other offering costs.
The warrants
The placement carries two warrant series, each covering up to 8,571,429 ADSs. The Series A-1 warrants have an exercise price of $0.86 per ADS and a five-year term. The Series A-2 warrants have an exercise price of $0.70 per ADS and an 18-month term. Both are exercisable immediately, and the terms run from the effective date of a resale registration statement.
If both series are exercised in full for cash, the company would receive about $13.4 million more. The release says no assurance can be given that any warrant will be exercised, or that the company will receive any cash from exercises. Each warrant carries a 4.99% beneficial ownership limit. The warrants and the shares underlying them were not registered under the Securities Act. The company agreed under a registration rights agreement to file a resale registration statement covering them.
Use of the money
Redhill says it will use part of the net proceeds to support a potential strategic product acquisition, and the balance for working capital, research and development and general corporate purposes. The company says no definitive acquisition agreement has been signed, and that any transaction would need definitive documents, financing and other customary conditions.
The company's annual report on Form 20-F says it will need to raise significant additional capital to continue as a going concern. It states that current cash and cash equivalents are not sufficient to fund operations and meet payment obligations for more than one year from the report date. If it cannot raise the money, it says it may have to reduce operations or sell assets.
The debt history
The 20-F describes how the company's debt came to be extinguished. On February 2, 2023 Redhill reached an agreement with HCRM for the extinguishment of its Credit Agreement obligations, in connection with the transfer of its Movantik rights to an affiliate of HCRM. HCRM assumed substantially all post-closing liabilities on Movantik, while Redhill U.S. kept substantially all pre-closing liabilities. On July 15, 2024 the parties signed a Global Termination Agreement. The annual report says pre-closing liabilities tied to Movantik remain, along with the liabilities assumed under that agreement.
The financial record
The 2024 figures, from the 20-F filed April 10, 2025, show a weak position. Revenue was $8.0 million in 2024, up from $6.5 million in 2023. The company reported a net loss of $8.3 million for 2024, after net income of $23.9 million in 2023. Cash used in operations was $9.4 million in 2024, against $35.8 million in 2023. Year-end cash and cash equivalents were $4.6 million at December 31, 2024, and $5.6 million a year earlier.
The most recent cash figure from the company's filings in this record is $2.9 million at June 30, 2025, a year before this placement. It gives no later balance, so the $6 million cannot be set against current cash.
Listing risk
The forward-looking statements in the June 18 release list the company's ability to regain and maintain compliance with Nasdaq's listing requirements, including the minimum bid price requirement, as a risk.
What comes next
The placement is expected to close on June 22, 2026. Warrant cash depends on whether the ADS price rises above $0.70 and $0.86, and no acquisition agreement has been signed.