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BioLineRx Ltd. Secures $10M in Direct Offering: Key Financial Insights

$BLRX
Form 6-K
Filed on: 2025-01-07
Source
BioLineRx Ltd. Secures $10M in Direct Offering: Key Financial Insights

Here are the key insights extracted from the financial report of BioLineRx Ltd., as detailed in the 6-K filing:

Key Information:

  1. Company Overview:
  • Name: BioLineRx Ltd.
  • Location: 2 HaMa’ayan Street, Modi’in 7177871, Israel.
  1. Securities Purchase Agreement:
  • Date of Agreement: January 6, 2025.
  • Type of Offering: Registered direct offering.
  • Amount: Issuance and sale of 50,000,000 American Depositary Shares (ADSs) and Pre-Funded Warrants.
  • Pricing:
    • Each ADS and accompanying Ordinary Warrant: $0.20.
    • Each Pre-Funded Warrant and accompanying Ordinary Warrant: $0.1999.
  • Gross Proceeds: Approximately $10 million expected from the Offering.
  1. Use of Proceeds:
  • The net proceeds will be allocated for:
    • Research and development activities.
    • Expansion of the drug candidate pipeline.
    • Working capital and general corporate purposes.
  1. Warrants:
  • Pre-Funded Warrants: Exercise price of $0.0001 per ADS, immediately exercisable, no expiration until exercised.
  • Ordinary Warrants: Exercise price of $0.20 per ADS, also immediately exercisable, with a 5-year term from issuance.
  • Ownership Limitation: Holders cannot exercise warrants if they would exceed 4.99% (or 9.99%) beneficial ownership of ordinary shares after exercise.
  1. Restrictions After Offering:
  • The Company is prohibited from issuing any additional ADSs or ordinary shares for 60 days post-closing, with certain exceptions.
  • For one year post-closing, the Company cannot engage in "variable rate transactions."
  1. Placement Agent:
  • Agent: H.C. Wainwright & Co., LLC.
  • Fees:
    • 7% of gross proceeds as a placement fee.
    • 1% management fee.
    • Additional expenses totaling $65,950.
  • Warrants for Placement Agent: 5% of the aggregate number of ADSs sold, exercisable at $0.25 per ADS with an expiration of January 6, 2030.
  1. Regulatory Compliance:
  • Securities issued are under a prospectus supplement dated January 6, 2025, and are part of a shelf registration statement effective since January 5, 2024.
  1. Forward-Looking Statements:
  • The report includes forward-looking statements regarding the closing of the Offering, which are subject to various conditions and may not occur as anticipated.

Summary:

BioLineRx Ltd. is conducting a significant registered direct offering to raise approximately $10 million through the sale of ADSs and warrants, with proceeds earmarked for R&D and operational purposes. The company has established restrictions on further issuances of shares for a period following this offering to stabilize its market position. The engagement of H.C. Wainwright as a placement agent outlines the financial terms and expectations from this capital raise.