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RedHill Biopharma (RDHL) prices $6M ADS private placement with warrants

Filing Impact
(Neutral)
Filing Sentiment
(Neutral)
Form Type
6-K

Rhea-AI Filing Summary

RedHill Biopharma Ltd. entered into a private placement with an accredited investor to sell 8,571,429 American Depositary Shares (or pre-funded warrants) together with Series A-1 and Series A-2 warrants, at a combined purchase price of $0.70 per ADS and accompanying warrants.

The Series A-1 warrants cover up to 8,571,429 ADSs at an exercise price of $0.86 per ADS and are exercisable immediately for five years after the registration statement becomes effective. The Series A-2 warrants cover up to 8,571,429 ADSs at an exercise price of $0.70 per ADS and are exercisable immediately for 18 months after effectiveness.

The company expects gross proceeds of approximately $6 million before fees and expenses, with potential additional gross proceeds of about $13.4 million if all Series A-1 and Series A-2 warrants are exercised for cash. RedHill also issued the placement agent warrants to acquire up to 514,286 ADSs at $0.875 per ADS.

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Insights

RedHill secures $6M now with added warrant-based funding optionality.

RedHill Biopharma arranged a structured private placement combining ADSs (or pre-funded warrants) with Series A-1 and A-2 warrants. The deal brings approximately $6 million in gross proceeds at a combined purchase price of $0.70 per ADS plus warrants, providing near-term liquidity.

The attached warrants could generate about $13.4 million in additional gross proceeds if exercised for cash at strike prices of $0.86 and $0.70 per ADS. A 4.99% beneficial ownership cap limits how much any holder can own through exercises, which helps manage concentration and potential control concerns.

The company agreed to file a resale registration statement within 15 days of June 18, 2026 and seek effectiveness within 45–75 days. It also accepted 90-day restrictions on new equity issuances after effectiveness and a one-year ban on defined “Variable Rate Transactions,” so later financing flexibility will depend on these constraints and future market conditions.

ADSs or pre-funded warrants sold 8,571,429 ADSs Offered in the June 18, 2026 private placement
Combined purchase price $0.70 per ADS and warrants Private placement pricing per ADS and accompanying warrants
Gross proceeds from offering Approximately $6 million Expected gross proceeds before fees and expenses
Potential additional proceeds Approximately $13.4 million If all Series A-1 and A-2 warrants are exercised for cash
Series A-1 warrant exercise price $0.86 per ADS Exercise price; five-year term after registration effectiveness
Series A-2 warrant exercise price $0.70 per ADS Exercise price; 18-month term after registration effectiveness
Placement agent warrants 514,286 ADSs at $0.875 Warrants issued to placement agent or designees, five-year term
Placement agent cash fee 7.5% of gross proceeds Cash fee on total gross proceeds of the private placement
Securities Purchase Agreement financial
"entered into a Securities Purchase Agreement (the “Purchase Agreement”) with an accredited investor"
A securities purchase agreement is a written contract between a buyer and a seller outlining the terms for buying or selling financial assets such as stocks or bonds. It specifies details like the price, quantity, and conditions of the transaction, similar to a shopping list with agreed-upon terms. For investors, it provides clarity and legal protection when transferring ownership of these financial instruments.
Registration Rights Agreement financial
"entered into a registration rights agreement (the “Registration Rights Agreement”) with the Purchaser"
A registration rights agreement is a contract that gives investors the option to have their ownership stakes officially registered with the government, making it easier to sell their shares later. This agreement matters because it provides investors with a clearer path to cash out their investments if they choose, offering more liquidity and confidence in their ability to sell their holdings when desired.
American Depositary Shares financial
"8,571,429 American Depositary Shares (the “Offering ADSs”), each representing 10,000 ordinary shares"
American depositary shares (ADSs) are a way for investors in the United States to buy shares of foreign companies without dealing with international markets directly. They represent ownership in a foreign company's stock and are traded on U.S. stock exchanges, making it easier for American investors to buy, sell, and own parts of companies from around the world.
Variable Rate Transaction financial
"prohibited from effecting or entering into an agreement to effect any issuance ... involving a defined “Variable Rate Transaction”"
beneficial ownership financial
"Ordinary Shares underling the ADSs beneficially owned by the holder (together with its affiliates)"
Beneficial ownership means the person or entity that actually enjoys the benefits of owning shares or other assets — such as receiving dividends, voting rights, or price gains — even if the legal title is held in another name. For investors it matters because knowing who truly controls and profits from a company reveals who can influence decisions, exposes potential conflicts of interest or hidden concentration of power, and affects transparency and risk in the stock.
Regulation D regulatory
"in a private placement pursuant to Section 4(a)(2) and/or Regulation D promulgated under the Securities Act"
Regulation D is a set of rules that govern how companies can raise money from investors without going through the full process required for public stock offerings. It provides simplified options for private placements, making it easier for companies to seek investments from a smaller group of investors. For investors, it offers opportunities to invest in private companies, often with fewer restrictions, but also with different levels of risk and disclosure.
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION 

Washington, D.C. 20549

 

FORM 6-K

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 

of the Securities Exchange Act of 1934

 

For the month of June 2026
Commission File No.:001-35773

 

REDHILL BIOPHARMA LTD.

(Translation of registrant’s name into English)

 

21 Ha'arba'a Street, Tel Aviv, 6473921, Israel

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.  

 

Form 20-F ☒        Form 40-F ☐

 

On June 18, 2026, RedHill Bioharma Ltd. (the “Company”) entered into a Securities Purchase Agreement (the “Purchase Agreement”) with an accredited investor (the “Purchaser”) in connection with a private placement (the “Private Placement”) for the offer, issuance and sale of (i) 8,571,429 American Depositary Shares (the “Offering ADSs”), each representing 10,000 ordinary shares (“Ordinary Shares”), par value NIS 0.01 per share of the Company (“ADSs”) (or pre-funded warrants (the “Pre-Funded Warrants”)), (ii) series A-1 warrants (the “Series A-1 Warrants”) to purchase up to 8,571,429 ADSs and (iii) series A-2 warrants (the “Series A-2 Warrants”, and together with the Pre-Funded Warrants and the Series A-1 Warrants, the “Warrants”) to purchase up to 8,571,429 ADSs (the Offering ADSs, the Warrants and the ADSs issuable upon exercise of the Series A-1 Warrants and A-2 Warrants called the “Securities”), at a combined purchase price of $0.70 per ADS and accompanying warrants (or $0.699 per Pre-Funded Warrant and accompanying warrants) in a private placement. The Series A-1 warrants have an exercise price of $0.86 per ADS, are exercisable immediately and have a term of five years following the Effectiveness Date (as defined below), and the Series A-2 warrants have an exercise price of $0.70 per ADS, are exercisable immediately and have a term of 18 months following the Effectiveness Date.

 

Under the terms of the Warrants, a holder will not be entitled to exercise any portion of any such warrant, if, upon giving effect to any issuance after exercise, the aggregate number of Ordinary Shares or Ordinary Shares underling the ADSs beneficially owned by the holder (together with its affiliates and other persons acting as a group together with the holder or any of the holder’s affiliates) would exceed 4.99% of (i) the number of Ordinary Shares or (ii) the outstanding aggregate voting rights of the Company, as such percentage ownership is calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended, and the applicable regulations of the Securities and Exchange Commission (the “SEC”).

 

The Purchase Agreement contains customary representations, warranties and agreements by the Company, indemnification obligations of the Company, other obligations of the parties and termination provisions.

 

In connection with the Private Placement, the Company entered into a registration rights agreement (the “Registration Rights Agreement”) with the Purchaser pursuant to which the Company is required to prepare and file with the SEC a registration statement (a “Registration Statement”) to register for resale the Securities sold in the Private Placement within fifteen (15) calendar days of June 18, 2026 and use commercially reasonable efforts to cause such registration to become effective (the “Effectiveness Date”), within forty five (45) calendar days (or within seventy (75) calendar days in the event the SEC elects to review such registration statement).

 

Subject to certain exceptions, for a period of ninety (90) days after the Effectiveness Date, the Company has agreed that neither it nor any subsidiary will issue, enter into any agreement to issue or announce the issuance or proposed issuance of any ADSs, Ordinary Shares or Ordinary Share equivalents or file any registration statement or amendment or supplement thereto, other than pursuant to the Registration Rights Agreement. Also, for one year following the Effectiveness Date, the Company shall be prohibited from effecting or entering into an agreement to effect any issuance by the Company or any of its subsidiaries of ADSs, Ordinary Shares or Ordinary Share equivalents (or a combination of units thereof) involving a defined “Variable Rate Transaction,” subject to certain exceptions.

 

The Securities were issued to an accredited investor in a private placement pursuant to Section 4(a)(2) and/or Regulation D promulgated under the Securities Act of 1933, as amended (the “Securities Act”).

 

H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering (the “Placement Agent”) in connection with the Private Placement. The Company agreed to pay the Placement Agent a cash fee equal to 7.5% of the gross proceeds of the Private Placement and reimburse the Placement Agent for certain expenses. The Company also issued to the Placement Agent or its designees warrants to acquire up to 514,286 ADSs at an exercise price per ADS of $0.875 and a term of five years following the Effectiveness Date.

 

The foregoing summary of the Purchase Agreement, Registration Rights Agreement and the Warrants do not purport to be complete and are qualified in their entirety by reference to the full text of the Purchase Agreement, the Registration Rights Agreement, Pre-Funded Warrants, the Series A-1 Warrants, Series A-2 Warrants and Placement Agent Warrants, which are filed as Exhibits 1.1, 1.2, 1.3, 1.4, 1.5 and 1.6, respectively, to this Current Report on Form 6-K and are incorporated by reference herein.

 

The gross proceeds to the Company from this offering are expected to be approximately $6 million, before deducting the placement agent’s fees and other offering expenses payable by the Company. The potential additional gross proceeds to the Company from the Series A-1 warrants and the Series A-2 warrants, if fully exercised on a cash basis, will be approximately $13.4 million. No assurance can be given that any of the Series A-1 Warrants or Series A-2 Warrants will be exercised, or that the Company will receive cash proceeds from the exercise of the Series A-1 Warrants or Series A-2 Warrants.

 

This Form 6-K is hereby incorporated by reference into the Company's Registration Statements on Form S-8 filed with the Securities and Exchange Commission on May 2, 2013 (Registration No. 333-188286), on October 29, 2015 (Registration No. 333-207654), on July 25, 2017 (Registration No. 333-219441), on May 23, 2018 (Registration No. 333-225122), on July 24, 2019 (File No. 333-232776), on March 25, 2021 (File No. 333-254692), on May 3, 2021 (File No. 333-255710), on January 11, 2022 (File No. 333-262099), on June 27, 2022 (File No. 333-265845), on June 29, 2023 (File No. 333-273001), on June 20, 2024 (File No. 333-280327), on March 25, 2025 (File No. 333-286082) and on January 22, 2026 (File No. 333-292879), and its Registration Statements on Form F-3 filed with the Securities and Exchange Commission on March 30, 2021 (File No. 333-254848), on August 4, 2023 (File No. 333-273709), on October 13, 2023 (File No. 333-274957), as amended, and on August 9, 2024 (File No. 333-281417).

 

Exhibit Index

 

Exhibit No.   Description
1.1   Form of Securities Purchase Agreement, dated as of June 18, 2026, between the Company and the Purchaser identified on the signature page thereto
1.2   Form of Registration Rights Agreement, dated as of June 18, 2026, between the Company and the Purchaser identified on the signature page thereto
1.3   Form of Pre-Funded Warrant
1.4   Form of Series A-1 Warrant
1.5   Form of Series A-2 Warrant
1.6   Form of Placement Agent Warrant

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. 

 

  REDHILL BIOPHARMA LTD.  
  (the “Registrant”)  
       
Date: June 22, 2026 By: /s/ Dror Ben-Asher  
  Name: Dror Ben-Asher  
  Title: Chief Executive Officer  

 

 

FAQ

What financing did RedHill Biopharma (RDHL) announce in this Form 6-K?

RedHill Biopharma entered a private placement with an accredited investor, selling 8,571,429 ADSs (or pre-funded warrants) plus Series A-1 and A-2 warrants. The transaction combines immediate equity funding with additional warrant-based funding potential.

How much cash does RedHill Biopharma expect to raise from the private placement?

The company expects gross proceeds of approximately $6 million before placement agent fees and other offering expenses. This amount comes from selling 8,571,429 ADSs (or pre-funded warrants) with accompanying warrants at a combined purchase price of $0.70 per ADS.

What are the key terms of RedHill Biopharma’s Series A-1 and Series A-2 warrants?

Series A-1 warrants have a $0.86 exercise price per ADS, are exercisable immediately, and last five years after registration effectiveness. Series A-2 warrants have a $0.70 exercise price, are also immediately exercisable, and run for 18 months after the registration statement becomes effective.

What additional proceeds could RedHill Biopharma receive if all warrants are exercised?

If all Series A-1 and Series A-2 warrants issued in the financing are fully exercised for cash, RedHill Biopharma could receive approximately $13.4 million in additional gross proceeds. The filing notes there is no assurance any warrants will be exercised.

Are there ownership limits on exercising RedHill Biopharma’s new warrants?

Yes. The warrants include a 4.99% beneficial ownership limitation. A holder cannot exercise warrants if, after exercise, it and its affiliates would own more than 4.99% of RedHill’s ordinary shares or aggregate voting rights as calculated under Section 13(d) rules.

What issuance restrictions did RedHill Biopharma agree to after this financing?

For 90 days after the registration statement’s effectiveness, the company generally cannot issue or agree to issue new ADSs, ordinary shares or equivalents, or file new registration statements, with specified exceptions. For one year, it is also prohibited from defined Variable Rate Transactions, subject to exceptions.

What compensation did the placement agent receive in RedHill Biopharma’s deal?

H.C. Wainwright & Co. is the exclusive placement agent and will receive a cash fee equal to 7.5% of gross proceeds plus expense reimbursement. The firm or its designees also received warrants to acquire up to 514,286 ADSs at an exercise price of $0.875 per ADS for five years.

Filing Exhibits & Attachments

6 documents