Adial Pharma Shares Drop 24% After Private Placement Prices

By Chris Wack

Adial Pharmaceuticals shares were down 24% at $2.13 after the company entered into definitive agreements for the purchase and sale of 1.4 million shares, series A warrants to buy up to 1.4 million shares and series B warrants to buy up to 1.4 million shares at $2.82 a share and accompanying warrants in a private placement.

The offering is expected to close on or about Tuesday.
The series A and the series B warrants will have an exercise price of $2.82 a share and will become exercisable on the effective date of stockholder approval for the issuance of the shares upon exercise of the warrants. The series A warrants will expire five and a half years from the date of issuance and the series B warrants will expire 18 months from the date of issuance.
The proceeds to the company from the private placement are expected to be $4 million. The company intends to use the proceeds for general corporate purposes, including general and administrative expenses, working capital and to support regulatory and clinical activities related to AD04, its lead investigational drug product for the treatment of Alcohol Use Disorder.
Write to Chris Wack at [email protected]