#Israel #Tel Aviv #oncology #BioLineRx #Biopharma

BioLineRx Adjusts American Depositary Shares Ratio

On January 17, 2025, BioLineRx Ltd., a clinical-stage biopharmaceutical company known for its innovative therapies in oncology and rare diseases, made a notable announcement regarding its American Depositary Shares (ADS). The Board of Directors approved a change in the ratio of ordinary shares represented by each ADS, increasing it from 15 ordinary shares to 600 ordinary shares. This adjustment essentially functions as a 1-for-40 reverse stock split of the ADS, resulting in a significant reduction of outstanding ADSs from 142,340,133 to just 3,558,503.

Significance of the Change

The alteration in the ADS to ordinary share ratio aims to bolster BioLineRx's compliance with the Nasdaq Capital Market's listing standards, especially addressing the regulations concerning low-priced stocks. As a result of this change, each ADS will now represent a higher number of ordinary shares, which is anticipated to increase the trading price of the ADSs accordingly. However, the company has clearly stated that it cannot guarantee that the new ADS price will be 40 times greater than the price before this ratio change.

This strategic move follows a successful licensing agreement with Ayrmid Ltd. announced in November, along with recent financing efforts that have left the company well-capitalized. According to Philip Serlin, the CEO of BioLineRx, the company now holds $29.5 million in cash, sufficiently covering its operational needs until the latter half of 2026. He noted that their projected annual operating expenses are around $12 million, aimed at supporting the ongoing development of their lead product, motixafortide, particularly in the field of pancreatic cancer.

Impact on Investors and Shareholders

Investors holding ordinary shares in Tel Aviv remain unaffected by this ratio change, which specifically pertains to the ADS listed on Nasdaq. This move is intended to enhance the attractiveness of BioLineRx's ADS for trading, thereby enabling them to take full advantage of the benefits associated with being listed on a major exchange.

Furthermore, no fractional ADSs will be created from this new ratio. Those who would typically receive fractional shares will instead be compensated with cash equivalent to the value of those fractions, ensuring that no shareholder faces an unfavorable situation due to the adjustment.

Holders of ADSs will see this change reflected in their accounts automatically after January 30, 2025, eliminating the need for any immediate action on their part. For those with physical ADS certificates, they will receive instructions for exchanging their certificates for ADSs issued under the new ratio shortly after this date.

About BioLineRx

Established as a visionary in clinical-stage biotech innovation, BioLineRx focuses on developing therapies that have the potential to significantly alter the treatment landscape for oncology and rare diseases. Its flagship product, APHEXDA® (motixafortide), is currently indicated for stem cell mobilization in the treatment of multiple myeloma, with various partners facilitating its commercialization worldwide. BioLineRx is committed to advancing its diverse pipeline, ensuring that promising discoveries make their way from research labs to clinical practice.

For more insights on BioLineRx’s developments and initiatives, visit their website at www.biolinerx.com or follow them on social media platforms like Twitter and LinkedIn.

In conclusion, this strategic adjustment to the ADS ratio marks an important step for BioLineRx as it solidifies its position in the competitive biotech landscape while focusing on fostering growth and compliance within regulatory frameworks.