Adial Pharmaceuticals Announces a Warrant Inducement Transaction for $2.75 Million in Gross Proceeds

Core Viewpoint - Adial Pharmaceuticals, Inc. has entered into a warrant inducement agreement with an institutional investor for the immediate exercise of existing Series B and Series C Warrants, aiming to raise approximately $2.75 million for working capital and corporate purposes [1][3]. Group 1: Warrant Inducement Agreement - The agreement involves the exercise of Series B Warrants to purchase up to 1,418,440 shares and Series C Warrants for up to 2,300,000 shares at a reduced exercise price of $0.74 [1]. - In exchange for the immediate exercise of the Existing Warrants, the investor will receive new Series B-1 and Series C-1 Warrants, allowing the purchase of up to 2,482,270 and 4,025,000 shares respectively, also at an exercise price of $0.74 [3]. - The closing of this transaction is expected around May 5, 2025, pending customary closing conditions [3]. Group 2: Use of Proceeds - The net proceeds from this offering will be utilized for working capital and other general corporate purposes [1]. Group 3: Company Overview - Adial Pharmaceuticals is focused on developing therapies for addiction and related disorders, with its lead product AD04 targeting Alcohol Use Disorder (AUD) [6]. - AD04 has shown promising results in a pivotal Phase 3 clinical trial, indicating potential effectiveness in reducing drinking among heavy drinkers with specific genetic profiles [6]. - The company also believes AD04 may be effective in treating other addictive disorders, including Opioid Use Disorder, gambling, and obesity [6].