Adial Pharmaceuticals (NASDAQ: ADIL) has recently entered into definitive agreements for the purchase and sale of 1.4 million shares, series A warrants, and series B warrants in a private placement. As a result, the company's shares were down 24% at $2.13.
Details of the Offering
The private placement includes the purchase and sale of:
- 1.4 million common shares
- Series A warrants to buy up to 1.4 million shares
- Series B warrants to buy up to 1.4 million shares
The shares and warrants are priced at $2.82 per share. The offering is expected to close on or about Tuesday.
Exercise Price and Expiration Date
Both the series A and series B warrants have an exercise price of $2.82 per share. They will become exercisable upon stockholder approval for the issuance of the shares. The series A warrants will expire after five and a half years from the date of issuance, while the series B warrants will expire 18 months from the date of issuance.
Intended Use of Proceeds
Adial Pharmaceuticals anticipates receiving approximately $4 million from this private placement. The company plans to utilize the proceeds for various purposes, including:
- General corporate expenses
- General and administrative expenses
- Working capital
- Support for regulatory and clinical activities related to AD04. AD04 is the company's lead investigational drug product for the treatment of Alcohol Use Disorder.
Conclusion
This private placement provides Adial Pharmaceuticals with an opportunity to secure funds for its ongoing operations, research, and development efforts. The company aims to advance its lead investigational drug product, AD04, which shows promising potential in addressing Alcohol Use Disorder.
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