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Adial Pharmaceuticals Announces Private Placement of Common Stock at $4.00 Per Share and Cash Exercise of Stock Options
Financing to support clinical trial pathway for non-opioid drug candidate for treatment of pain CHARLOTTESVILLE, Va., Nov. 10, 2021 (GLOBE NEWSWIRE) -- Adial
About this update from Adial Pharmaceuticals, Inc
[{"type":"text","content":"Financing to support clinical trial pathway for non-opioid drug candidate for treatment of pain\nCHARLOTTESVILLE, Va., Nov. 10, 2021 (GLOBE NEWSWIRE) -- 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 received funds and capital commitments totaling $1,255,000; $800,000 from the sale of shares of common stock in a private placement at a price of $4.00 per share (the “Shares”), and $455,000 from the cash exercise of incentive stock options (the “Options”) granted to Mark Howard Peikin, the Company’s Chief Strategy Officer. Although the Options were available for cashless exercise, Mr. Peikin elected to exercise the Options for cash to support the expansion of Adial’s drug development pipeline. Mr. Peikin does not receive a salary for his work on behalf of Adial, however, Adial’s Board of Directors has granted Mr. Peikin stock options from time-to-time in recognition of his contributions to the Company. The Options were exercised by Mr. Peikin for a total cash exercise price of $455,000, which funds have been received by Adial. The Shares were purchased pursuant to a Securities Purchase Agreement (“SPA”) by Bespoke Growth Partners, Inc. (“Bespoke”), which is controlled by Mr. Peikin. Bespoke led Adial’s prior private placement and has also invested in Adial in several earlier financing rounds. In accordance with the terms of the SPA, Bespoke has funded $80,000, which has been received by Adial, and Bespoke is expected to fund the balance of the $800,000 it committed to fund upon a registration statement registering the Shares being declared effective by the Securities and Exchange Commission. No warrants or options were issued in connection with the SPA, and no investment banking fees were incurred by Adial in connection with the transactions. William Stilley, Adial’s Chief Executive Officer, stated, “Due to the strength of our recently announced data for our lead compound for pain, PNV-5030, we felt it important to have additional cash on hand to support the development of PNV-5030 into clinical trials as a potential non-opioid drug candidate for the treatment of pain. These additional funds, invested on terms that we believe are be...