BioLineRx Underpriced $15 mn SPO Case

On September 19, 2022, BioLineRx (NASDAQ: BLRX) issued a press release that stated, it had “entered into definitive agreements with several institutional investors for the issuance and sale in a registered direct offering of 13,636,365 of the Company’s American Depositary Shares (ADSs) and warranted to purchase up to an aggregate of 13,636,365 ADSs, at a combined purchase price of $1.10 per ADS and associated warrant..”

The press release also disclosed that "BioLineRx intends to use the net proceeds to facilitate the commercial launch of Motixafortide in autologous stem cell mobilization for multiple myeloma patients and general corporate purposes, which may include working capital and funding clinical trials.”

On this news, BioLine’s ADS dropped 33%, seriously damaging investors.

Taking all representations and financing decisions into account, Investors have grounds to suspect the Company and its Leaders failed to disclose material facts that consequently lead to shareholdings value depreciations:

• the Company was not well financed to develop Motixafortide while at the same time advancing other pipeline programs;

• BioLine would require a loan from Kreos Capital VII Aggregator SCSP in an aggregate principal amount of up to $40 million and then also would require a $15M securities offering to facilitate the commercial launch of Motixafortide.