Adial Pharmaceuticals (NASDAQ:ADIL) stock is skyrocketing today as the company announced that it has made a key move in managing its financials that could have long-term benefits for its future.
The biopharmaceutical company, which is a clinical-stage company that develops medicines designed to treat addiction, said that it has retired all outstanding debt. Adial Pharmaceuticals said that the holder of the sole remaining, outstanding convertible note was able to fully convert the balance of the note into common shares of the company with the convertible note having a face value of $325,000 and was convertible into 162,500 shares of common stock.
“As we position Adial for continued success in 2019, I am pleased to report that we have now completed the retirement of all outstanding debt instruments by facilitating the conversion of this note obligation,” Adial Pharmaceuticals CEO William Stilley said. “
We appreciate the support and confidence this shareholder has provided leading up to and since our recent IPO. Looking ahead, our goal is to drive shareholder value in the coming year by achieving key clinical milestones, while maintaining a clean capital structure and healthy balance sheet.”
The company’s latest addiction-combating drug product is AD04, which is a genetically targeted therapeutic agent designed to treat alcohol use disorder. A Phase 2b clinical trial of the drug unveiled promising results to reduce the frequency of drinking, quantity of drinking and heavy drinking, as well as displaying no overt safety concerns.
ADIL stock is soaring a touch above 42% on Wednesday following the news.