BioLineRx Announces $6 Million Registered Direct Offering
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The recent transaction by BioLineRx involves a registered direct offering, which is a mechanism used by public companies to raise capital by selling securities directly to a select group of investors, often institutional. The pricing at $0.80 per ADS, which includes a warrant, appears to be a strategic move to incentivize investment without the immediate dilution that would occur from direct stock issuance at the current market price.
From a financial perspective, the capital infusion is likely aimed at funding ongoing research and development activities or to strengthen the company's balance sheet. The use of warrants can also be seen as a way to manage dilution over time. However, the impact on the stock price can be multifaceted. On one hand, the influx of capital is positive, but on the other, the market often reacts to dilution with a decrease in share price. Investors will need to weigh the potential of the company's pipeline against the dilutive effect of the new securities.
BioLineRx's focus on oncology and rare diseases places it in a high-growth potential market, but also one that is highly competitive and capital-intensive. The decision to raise funds through a registered direct offering rather than a traditional follow-on public offering suggests a need for quick access to capital, potentially to accelerate product development or to reach key clinical milestones.
Investors should consider the company's track record, current pipeline status and the competitive landscape. The exercise price of the warrants being equal to the ADS sale price indicates a neutral stance on the company's short-term growth prospects, as it neither provides a discount nor a premium. Long-term, the warrant holders could benefit if the company's share price appreciates above the exercise price, aligning their interests with the company's performance.
In the biopharmaceutical industry, funding is a continuous requirement due to the long and costly process of drug development. BioLineRx's strategy to issue ADSs and warrants reflects a common practice to secure capital while attempting to mitigate shareholder dilution. The five-year expiration on the warrants is a standard duration, providing investors with a long-term investment horizon.
The implications for stakeholders include a balance between immediate dilution risk and potential future capital gains. The company's valuation post-offering will depend on the success of its ongoing projects in oncology and rare diseases, areas that are subject to high regulatory scrutiny and require significant investment in clinical trials. Investors should monitor the company's progress closely, as any advancements or setbacks in the pipeline could significantly influence the stock's performance.
The gross proceeds from the offering (without taking into account any proceeds from any future exercises of warrants), before deducting the placement agent's fees and other offering expenses payable by the Company, are expected to be
"We believe that today's equity transaction, when combined with the potential drawdown of an additional
JonesTrading Institutional Services LLC is acting as the exclusive placement agent for the offering.
The offering is being made by the Company pursuant to its shelf registration statement on Form F-3 (File No. 333-276323) previously filed with the Securities and Exchange Commission (the "SEC") and declared effective by the SEC on January 5, 2024, and only by means of a prospectus and prospectus supplement. A final prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and will be available on the SEC's web site at www.sec.gov. Alternatively, copies of the final prospectus supplement and accompanying prospectus relating to the offering may be obtained, when available, by sending a request to: JonesTrading Institutional Services LLC, Attention: Equity Capital Markets, 325 Hudson Street
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, 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 registration or qualification under the securities laws of any such state or jurisdiction.
About BioLineRx
BioLineRx Ltd. (NASDAQ/TASE: BLRX) is a commercial stage 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
Learn more about who we are, what we do, and how we do it at www.biolinerx.com , or on Twitter and LinkedIn.
Forward-Looking Statements
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, expectations and commercial potential of motixafortide, as well as its potential investigational uses. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including statements relating to the registered direct offering, including as to the consummation of the offering described above, the expected gross proceeds therefrom, the intended use of proceeds and the timing of the closing of the offering. These forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond BioLineRx's control, including, without limitation, market conditions and the trading price and volatility of BioLineRx's ADSs. 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:
John Lacey
BioLineRx
IR@biolinerx.com
Moran Meir
LifeSci Advisors, LLC
moran@lifesciadvisors.com
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SOURCE BioLineRx Ltd.
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