TEL-AVIV, Israel, Jan. 22, 2014 (GLOBE NEWSWIRE) -- RedHill Biopharma Ltd. (Nasdaq:RDHL) (TASE:RDHL) (the "Company" or "RedHill"), an emerging Israeli biopharmaceutical company focused primarily on the development and acquisition of late clinical-stage, proprietary formulations and combinations of existing drugs, announced that it has closed, on January 21, 2014, its previously announced private placement (the "Private Placement") of ordinary shares and warrants for approximately $11.7 million.
The investors in the Private Placement include leading Israeli institutional investors Migdal Insurance Company, Yelin Lapidot, and Excellence Nessuah, as well as Sphera Global Healthcare Master Fund and two private Israeli investment firms.
In connection with the closing, the Company issued a total of 10,458,740 ordinary shares and three year warrants to purchase an additional 4,183,496 ordinary shares.Ori Shilo, Deputy CEO, Finance and Operations, said: "This $11.7 million Private Placement follows an earlier $8.5 million private placement from leading healthcare investors OrbiMed and Broadfin. We are very pleased to have such prominent new shareholders, and view their investment as a vote of confidence. With the support from our new and current shareholders, and with over $30 million in cash, we continue to aggressively pursue our strategic plans and advance our lead programs, RHB-104 for Crohn's disease and RHB-105 for H. pylori infection, both currently undergoing Phase III studies in the U.S." Proceeds from the financing will be used for general working capital, for research and development related purposes and for potential acquisitions. The ordinary shares and warrants offered in the Private Placement and the ordinary shares issuable upon the exercise of the warrants have not been registered under the Securities Act of 1933, as amended, or state securities laws, and may not be offered or sold in the United States unless such sale is made pursuant to an effective registration statement filed with the SEC or pursuant to an applicable exemption from SEC registration requirements.