Adial Pharmaceuticals Announces Closing of $10 Million Financing
Adial Pharmaceuticals, Inc. recently announced the closing of its previously announced registered direct offering, whereby a single accredited institutional investor purchased approximately $10 million of the company’s common stock and pre-funded warrants, as well as warrants to purchase common stock in a concurrent private placement. The combined effective purchase price for one share of common stock (or pre-funded warrant in lieu thereof) and a warrant to purchase 0.95 shares of common stock was $2.40.
Under the terms of the securities purchase agreement, Adial sold 2,322,250 shares of common stock and pre-funded warrants to purchase up to1,865,000 shares of common stock. Adial also issued warrants to purchase up to an aggregate of 3,977,888 shares of common stock. The warrants are exercisable six months from the date of issuance, expire five and a half years from the date of issuance, and have an exercise price of $2.52 per share of common stock.
The net proceeds of the offering strengthen Adial’s balance sheet as it moves toward completion of the company’s Phase 3 ONWARD trial and are intended primarily for working capital and other general corporate purposes. This capital is expected to support potential regulatory and commercialization activities related to AD04, pursuing strategic initiatives, and advancing preclinical and clinical activities related to the Company’s Purnovate adenosine platform, among other purposes.
The shares of common stock and pre-funded warrants were sold pursuant to a shelf registration statement on Form S-3 (File No. 333-237793) previously filed and declared effective by the Securities and Exchange Commission (SEC) and with Maxim Group LLC acting as the sole placement agent for the offering. The offering was made by means of a prospectus supplement that forms a part of the registration statement.
Adial Pharmaceuticals is a clinical-stage biopharmaceutical company focused on the development of treatments for addictions. The company’s lead investigational new drug product, AD04, is a genetically targeted, serotonin-3 receptor antagonist, therapeutic agent for the treatment of Alcohol Use Disorder (AUD) and is currently being investigated in the company’s landmark ONWARD pivotal Phase 3 clinical trial for the potential treatment of AUD in subjects with certain target genotypes, which are to be identified using the company’s proprietary companion diagnostic genetic test. A Phase 2b clinical trial of AD04 for the treatment of AUD showed promising results in reducing frequency of drinking, quantity of drinking and heavy drinking (all with statistical significance), and no overt safety concerns (there were no statistically significant serious adverse events reported). AD04 is also believed to have the potential to treat other addictive disorders such as Opioid Use Disorder, gambling, and obesity. The company is also developing adenosine analogs for the treatment of pain and other disorders through its wholly owned subsidiary, Purnovate, Inc. For more information, visit www.adialpharma.com.
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