RedHill Biopharma Ltd. (Nasdaq: RDHL) (“RedHill” or the “Company”), a specialty biopharmaceutical company, today announced that on September 19, 2023, it received a letter from the Listings Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) indicating that, for the thirty consecutive business days from August 7, 2023, to September 18, 2023, the bid price for the Company’s American Depositary Shares (“ADSs”) had closed below the minimum $1.00 per share requirement for continued listing on The Nasdaq Global Market under Nasdaq Listing Rule 5450(a)(1). The Nasdaq letter is only a notification of deficiency and has no immediate effect on the listing or trading of the Company’s ADSs.

In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company has been provided an initial period of 180 calendar days, or until March 18, 2024, to regain compliance. The letter states that the Nasdaq staff will provide written notification that the Company has achieved compliance with Rule 5450(a)(1) if at any time before March 18, 2024, the bid price of the Company’s ADSs closes at $1.00 per share or more for a minimum of ten consecutive business days.

RedHill’s ADSs will continue to trade on The Nasdaq Global Market, and the Company’s operations are not affected by the receipt of the Notice. RedHill intends to monitor the closing bid price of its ADSs and may, if appropriate, consider implementing available options to regain compliance with the minimum bid price requirement. If the Company does not regain compliance by March 18, 2024, the Company may be eligible for an additional 180 calendar day period to regain compliance, provided that the Company meets the continued listing requirement for market value of publicly held shares (“MVPHS”) and all other initial listing standards, with the exception of the bid price requirement, and would need to provide written notice of its intention to cure the deficiency during the second compliance period. However, as previously disclosed, RedHill received a written notification from Nasdaq on May 9, 2023, indicating that RedHill is not in compliance with the minimum MVPHS set forth in the Nasdaq Listing Rules for continued listing on Nasdaq, and RedHill has not regained compliance with the minimum MVPHS requirement. Pursuant to Nasdaq Listing Rule 5810(c)(3)(D), RedHill has a compliance period of 180 calendar days (or until November 6, 2023) to regain compliance with the minimum MVPHS requirement. In the event that the Company does not regain compliance by November 6, 2023, the Company would become subject to delisting unless it timely requests a hearing before a Nasdaq Hearings Panel (the “Panel”). Should the Company not regain compliance by that date, it is the Company’s present intention to request a hearing before the Panel. The hearing request would stay any delisting or suspension action pending the hearing and the expiration of any additional extension period granted by the Panel following the hearing. The maximum extension period that could be granted by the Panel is 180 calendar days from the forthcoming delisting notice.