Adial Announces Funding of Management-Led $2,100,000 Above Market Private Placement at $3.00 Per Share
June 03 2021 - 9:54AM
Adial Pharmaceuticals, Inc. (NASDAQ: ADIL; ADILW)
(“Adial” or the “Company”), a clinical-stage biopharmaceutical
company focused on developing therapies for the treatment and
prevention of addiction and related disorders, today announced that
it has completed the $2,100,000 private placement of 700,001 shares
of common stock at a price of $3.00 per share (the “Shares”) on
June 1, 2021. The private placement investors included Bespoke
Growth Partners, Inc., a company controlled by a member of
management, a member of the Board of Directors of the Company, and
Keystone Capital Partners, LLC. No warrants were issued and no
brokers fees were incurred in this financing transaction.
As previously disclosed, the Company received
$291,003 upon the parties’ execution of their respective Securities
Purchase Agreements and the balance of $1,809,000 following the
U.S. Securities and Exchange Commission declaring the registration
statement on Form S-3 registering the resale of the private
placement shares effective on May 26, 2021.
“We are excited to expand our relationship with
Adial through this financing,” said Fred Zaino, Managing Partner
and Chief Investment Officer of Keystone Capital Partners. “Adial
has continued to execute and we remain as encouraged as ever by the
outlook for the business. AD04 addresses a multi-billion-dollar,
underserved market for alcohol use disorder, with potential for
expansion into new indications such as opioid use disorder.
Moreover, Keystone believes that through the acquisition of
Purnovate and its expansion plans, Adial is positioning itself
become a leader in the broader addiction market, including with a
drug candidate for non-opioid pain reduction that addresses one of
the key contributors to addiction.”
“Purpose-driven investment is paramount to us at
Bespoke,” said Mark H. Peikin, CEO of Bespoke Growth Partners and
Chief Strategy Officer of Adial. “Addiction has affected so many of
us and our families, and has been further exacerbated by the
pandemic. Importantly, Adial is mid-stage in the landmark ONWARD
Phase 3 clinical trial testing AD04 for alcohol use disorder, and
we are looking forward to the completion of the trial.”
About Adial Pharmaceuticals,
Inc.
Adial Pharmaceuticals is a clinical-stage
biopharmaceutical company focused on developing therapies for the
treatment and prevention of addiction and related disorders. 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, and
the Company develops adenosine analogs for the treatment of pain
and other disorders. Additional information is available at
www.adialpharma.com.
About the Landmark ONWARD™ Pivotal Phase
3 Clinical Trial
The ONWARD trial is a 24-week, multicenter,
randomized, double-blind, placebo-controlled, parallel group, Phase
3 clinical study to evaluate the efficacy, safety and tolerability
of AD04 in patients with Alcohol Use Disorder (AUD) and selected
polymorphisms in the serotonin transporter and receptor genes.
Patients are genetically screened prior to enrollment in the ONWARD
trial so that only genetically positive patients are enrolled. The
primary endpoint for analysis of efficacy is the change from
baseline in the monthly number of heavy drinking days during the
last 8 weeks of the 24-week treatment period. ONWARD is currently
being conducted in 25 clinical sites in seven countries in
Scandinavia and Central and Eastern Europe (Sweden, Finland,
Poland, Latvia, Estonia, Bulgaria and Croatia). The principal
investigator is Professor Hannu E.R. Alho, Emeritus Professor of
Addiction Medicine at the University of Helsinki.
Forward Looking Statements
This communication contains certain
"forward-looking statements" within the meaning of the U.S. federal
securities laws. Such statements are based upon various facts and
derived utilizing numerous important assumptions and are subject to
known and unknown risks, uncertainties and other factors that may
cause actual results, performance or achievements to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Statements
preceded by, followed by or that otherwise include the words
"believes," "expects," "anticipates," "intends," "projects,"
"estimates," "plans" and similar expressions or future or
conditional verbs such as "will," "should," "would," "may" and
"could" are generally forward-looking in nature and not historical
facts, although not all forward-looking statements include the
foregoing. The forward-looking statements include statements
regarding Adial positioning itself become a leader in the broader
addiction market and the potential of AD04 to treat other addictive
disorders such as opioid use disorder, gambling, and obesity. Any
forward-looking statements included herein reflect our current
views, and they involve certain risks and uncertainties, including,
among others, our ability to leverage the acquisition of Purnovate
and our other expansion plans to position ourself as a leader in
the broader addiction market, our ability to enroll patients within
the timelines anticipated and complete clinical trials on time and
achieve desired results and benefits as expected, the ability of
AD04 to treat other addictive disorders such as opioid use
disorder, gambling, and obesity, our ability to obtain regulatory
approvals for commercialization of product candidates or to comply
with ongoing regulatory requirements, regulatory limitations
relating to our ability to promote or commercialize our product
candidates for specific indications, acceptance of its product
candidates in the marketplace and the successful development,
marketing or sale of products, our ability to maintain our license
agreements, the continued maintenance and growth of our patent
estate, our ability to establish and maintain collaborations, our
ability to obtain or maintain the capital or grants necessary to
fund its research and development activities, and our ability to
retain our key employees or maintain our Nasdaq listing. These
risks should not be construed as exhaustive and should be read
together with the other cautionary statement included in our Annual
Report on Form 10-K for the year ended December 31, 2020,
subsequent Quarterly Reports on Form 10-Q and current reports on
Form 8-K filed with the Securities and Exchange Commission. Any
forward-looking statement speaks only as of the date on which it
was initially made. We undertake no obligation to publicly update
or revise any forward-looking statement, whether as a result of new
information, future events, changed circumstances or otherwise,
unless required by law.
Contact:Crescendo Communications,
LLC David
Waldman / Natalya
Rudman Tel:
212-671-1021 Email:
adil@crescendo-ir.com
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