Drug development company BiolineRX Ltd. (Nasdaq: BLRX); TASE:BLRX) is raising $20 million in a secondary offering of its American Depository Receipts (ADRs) on Nasdaq, on the basis of a shelf registration statement previously filed with the US Securities and Exchange Commission (SEC). BioLineRX has priced an underwritten public offering of 8,400,000 ADRs each representing ten of its Ordinary Shares, at a public offering price of $2.50 per ADR for gross proceeds of $21 million. Delivery of the ADRs is scheduled for March 7. BioLineRx has granted the underwriters a 30-day option to purchase up to an additional 1,260,000 ADRs to cover over-allotments, if any.
The company will use the net proceeds to finance development of its products, including a Phase II clinical trial of its leukemia treatment purchased last year and a Phase I clinical trial of its celiac disease treatment.
BiolineRX had $18.2 million in cash at the end of 2013, and it burns $12 million a year. It has no income and is unlikely to have any in the coming years, unless it signs a commercialization agreement for its products under development, or sees income from Ikaria Inc., which is jointly developing one of the company's products.
Like all issues on the basis of shelf prospectuses filed with the SEC, the offering is only open to American investors and Israeli investment institutions, but not to private Israeli investors. The underwriters, Roth Capital Partners and Maxim Group LLC, have received an over-allotment option to buy up to an additional 15% of the company's shares at the pricing that will be announced today.
Published by Globes [online], Israel business news - www.globes-online.com - on March 4, 2014
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