BioLineRx Underpriced $15 mn SPO Case

D. New Jersey

Court

23-CV-00041

Case number

06 Mar 2023

Lead Plaintiff motion deadline

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.

Case Status

Motion to dismiss

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Failure to Disclose,

Price manipulation,

Malpractice,

Negligence,

Breach of Fiduciary duty,

Omissions

Suspected Party

Directors,

Management,

Shareholder,

Investment Bank,

Service Provider

Security Type

Depository Securities (ADS, ADR, GDR)

Trade Direction

Long

Shock Event Date

19 September 2022

Filing date

05 January 2023

Lead Plaintiff Deadline

06 March 2023

Judge

Hon. Brian R. Martinotti

BioLineRx Underpriced $15 mn SPO Case

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