BioLineRx Announces $10 Million Registered Direct Offering
Rhea-AI Summary
BioLineRx (Nasdaq: BLRX) has announced a $10 million registered direct offering of 50,000,000 American Depositary Shares (ADSs) at $0.20 per ADS. The offering includes accompanying warrants to purchase up to 50,000,000 additional ADSs at an exercise price of $0.20 per share, exercisable immediately and expiring in five years.
Each ADS represents fifteen ordinary shares of BioLineRx. The offering is expected to close around January 7, 2025, with H.C. Wainwright & Co. serving as the exclusive placement agent. The company plans to use the net proceeds for research and development activities, pipeline expansion, working capital, and general corporate purposes.
The offering is being made through a shelf registration statement filed with the SEC on December 29, 2023, and declared effective on January 5, 2024.
Positive
- Secured immediate funding of $10 million through registered direct offering
- Potential for additional $10 million through warrant exercises
- Strengthens working capital position for R&D activities and pipeline expansion
Negative
- Significant shareholder dilution with 50 million new ADSs being issued
- Low offering price of $0.20 per ADS indicates weak market position
- Additional potential dilution from 50 million warrants at the same price
News Market Reaction
On the day this news was published, BLRX declined 40.87%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.
The aggregate gross proceeds to the Company from the offering are expected to be approximately
The securities described above are being offered pursuant to a "shelf" registration statement (File No. 333-276323) filed with the Securities and Exchange Commission ("SEC") on December 29, 2023 and declared effective on January 5, 2024. The offering is being made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. The prospectus supplement and the accompanying prospectus relating to the securities being offered will be filed with the SEC and be available at the SEC's website at www.sec.gov. Electronic copies of the prospectus supplement and the accompanying prospectus relating to the securities being offered may also be obtained, when available, by contacting H.C. Wainwright & Co., LLC at 430 Park Avenue, 3rd Floor,
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.
About BioLineRx
BioLineRx Ltd. (NASDAQ/TASE: BLRX) is a biopharmaceutical company pursuing life-changing therapies in oncology and rare diseases. The company's first approved product is APHEXDA® (motixafortide), with an indication in the
Cautionary Note Regarding Forward-Looking Statements (BioLineRx)
Various statements in this release concerning BioLineRx's future expectations constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include words such as "anticipates," "believes," "could," "estimates," "expects," "intends," "may," "plans," "potential," "predicts," "projects," "should," "will," and "would," and describe opinions about future events. These include statements regarding management's expectations, beliefs and intentions regarding, among other things, the completion of the offering, the satisfaction of customary closing conditions related to the offering and the intended use of net proceeds from the offering. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of BioLineRx to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause BioLineRx's actual results to differ materially from those expressed or implied in such forward-looking statements include, but are not limited to: the initiation, timing, progress and results of BioLineRx's preclinical studies, clinical trials, and other therapeutic candidate development efforts; BioLineRx's ability to advance its therapeutic candidates into clinical trials or to successfully complete its preclinical studies or clinical trials; whether BioLineRx's collaboration partners will be able to execute on collaboration goals in a timely manner; whether the clinical trial results for APHEXDA will be predictive of real-world results; BioLineRx's receipt of regulatory approvals for its therapeutic candidates, and the timing of other regulatory filings and approvals; the clinical development, commercialization and market acceptance of BioLineRx's therapeutic candidates, including the degree and pace of market uptake of APHEXDA for the mobilization of hematopoietic stem cells for autologous transplantation in multiple myeloma patients; whether access to APHEXDA is achieved in a commercially viable manner and whether APHEXDA receives adequate reimbursement from third-party payors; BioLineRx's ability to establish, operationalize and maintain corporate collaborations; BioLineRx's ability to integrate new therapeutic candidates and new personnel; the interpretation of the properties and characteristics of BioLineRx's therapeutic candidates and of the results obtained with its therapeutic candidates in preclinical studies or clinical trials; the implementation of BioLineRx's business model and strategic plans for its business and therapeutic candidates; the scope of protection BioLineRx is able to establish and maintain for intellectual property rights covering its therapeutic candidates and its ability to operate its business without infringing the intellectual property rights of others; estimates of BioLineRx's expenses, future revenues, capital requirements and its needs for and ability to access sufficient additional financing, including any unexpected costs or delays in the commercial launch of APHEXDA; risks related to changes in healthcare laws, rules and regulations in
Contacts:
Moran Meir
LifeSci Advisors, LLC
moran@lifesciadvisors.com
+972-8-6429100
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SOURCE BioLineRx Ltd.
FAQ
What is the size and price of BioLineRx's (BLRX) January 2025 offering?
When do the BLRX warrants from the January 2025 offering expire?
How many ordinary shares does each BLRX ADS represent?
What will BioLineRx use the proceeds from the January 2025 offering for?
When is the closing date for BLRX's January 2025 registered direct offering?
