Core Viewpoint - Adial Pharmaceuticals has entered into a definitive agreement for the immediate exercise of outstanding warrants, which will generate approximately $3.53 million in gross proceeds for the company [1][2]. Group 1: Financial Details - The company will exercise warrants to purchase up to 1,150,000 shares of common stock at an exercise price of $2.82 per share, originally issued in October 2023 [1]. - In exchange for the immediate exercise of the warrants, Adial will issue new unregistered warrants to purchase up to 2,300,000 shares of common stock, also at an exercise price of $2.82 per share, with an eighteen-month term [2]. - The offering is expected to close on or about March 6, 2024, subject to customary closing conditions [2]. Group 2: Use of Proceeds - The net proceeds from the exercise of the warrants will be used for general corporate purposes, including administrative expenses, working capital, and to support regulatory and clinical activities related to AD04, the company's lead investigational drug for Alcohol Use Disorder (AUD) [2]. Group 3: Company Overview - Adial Pharmaceuticals is focused on developing therapies for addiction and related disorders, with its lead product AD04 being a serotonin-3 receptor antagonist aimed at treating AUD in heavy drinking patients [5]. - The ONWARD™ pivotal Phase 3 clinical trial for AD04 showed promising results in reducing drinking among heavy drinking patients without significant safety concerns [5]. - AD04 is also believed to have potential applications in treating other addictive disorders, including Opioid Use Disorder, gambling, and obesity [5].
Adial Pharmaceuticals Announces Exercise of Warrants for $3.5 Million Gross Proceeds