Adial raises $3.5M via warrant exercise, issues new 2.3M-share warrants

ADIAL PHARMACEUTICALS, INC.

Gross proceeds of ~$3.5M from cash exercise of 1.15M existing warrants at $2.82/share; H.C. Wainwright placement agent.
Incentive: new unregistered Series C warrants to buy up to 2.3M shares at $2.82, exercisable for 18 months.
Holder paid $0.125 per new warrant; placement agent fees: 7% cash + 1% management + $25k expense + $50k legal.
Proceeds to fund working capital and clinical activities for lead drug AD04 targeting Alcohol Use Disorder.
Company to file resale registration statement for new warrant shares within 45 days of closing.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

ADIAL PHARMACEUTICALS, INC. entered into Inducement Agreement with a certain holder of the Company's warrants to purchase shares of common stock valued at approximately $3.5 million (effective 2024-03-01).

Action: entry
Agreement: equity purchase
Counterparty: a certain holder of the Company's warrants to purchase shares of common stock
Value: approximately $3.5 million
Effective: 2024-03-01

Exact text from the filing

On March 1, 2024, Adial Pharmaceuticals, Inc. (the “Company”) entered into a warrant inducement agreement (the “Inducement Agreement”) with a certain holder (the “Holder”) of the Company’s warrants to purchase shares of the Company’s common stock

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ADIAL PHARMACEUTICALS, INC. filing history →

Source: SEC EDGAR

accession 0001213900-24-020440

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