TEL AVIV - BioLineRx Ltd. (NASDAQ: BLRX) (TASE: BLRX), a biopharmaceutical company focused on oncology and rare diseases, today announced a registered direct offering to raise $6 million. The Israel-based company has entered into agreements with several institutional investors for the sale of 7.5 million American Depositary Shares (ADSs) and warrants to purchase up to an equivalent number of ADSs, each at a price of $0.80.
The ADSs, representing fifteen ordinary shares each, will be accompanied by warrants exercisable immediately upon issuance and expiring five years from the date of issuance. The closing of the offering is anticipated on or about today, subject to customary closing conditions.
Philip Serlin, CEO of BioLineRx, stated that the equity transaction, along with a potential $20 million tranche from an existing debt facility and current cash reserves, will provide the company with the financial resources necessary for the commercialization of APHEXDA® (motixafortide) and to advance its clinical programs.
APHEXDA® has been approved in the U.S. for stem cell mobilization for autologous transplantation in patients with multiple myeloma. The proceeds from the offering are intended to support its commercial launch, the development of a pancreatic cancer clinical program, other pipeline programs, and general corporate purposes.
JonesTrading Institutional Services LLC is serving as the exclusive placement agent for the offering. The offering is made pursuant to a shelf registration statement declared effective by the SEC on January 5, 2024. Details regarding the offering will be available in a final prospectus supplement filed with the SEC.
This announcement is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy securities. The sale of these securities will not be conducted in any state or jurisdiction where such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
InvestingPro Insights
In light of BioLineRx's recent announcement of a $6 million registered direct offering, key metrics from InvestingPro shed light on the company's financial health and market position. As of the last twelve months ending Q4 2023, BioLineRx holds a market capitalization of $83.59 million. Despite the challenges that often accompany biopharmaceutical ventures, BioLineRx maintains a notable Price / Book ratio of 6.33, reflecting a premium that investors are willing to pay for its net assets.
One InvestingPro Tip suggests that BioLineRx is trading at a high Price / Book multiple, which may be indicative of the market's optimistic valuation of the company's potential, despite the fact that it has not been profitable over the last twelve months. Moreover, the company's stock experienced a significant decline over the last week, with a 1 Week Price Total Return of -13.85%. This could be a reflection of investor sentiment or broader market movements.
Another InvestingPro Tip worth noting for investors is that analysts do not anticipate BioLineRx will be profitable this year. It's crucial for investors to consider this alongside the company's strategy to raise capital through the direct offering, as it seeks to commercialize APHEXDA® and advance its clinical programs.
For those interested in a deeper dive into BioLineRx's financials and future prospects, there are 7 additional InvestingPro Tips available, which can provide a more comprehensive understanding of the company's position. As an exclusive offer, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro, unlocking a wealth of data and insights to inform their investment decisions.
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