BioLineRx Changes ADS Ratio for Enhanced Trading Opportunities

BioLineRx Updates ADS Ratio for Enhanced Trading

BioLineRx Ltd. (NASDAQ: BLRX), a clinical-stage biopharmaceutical company dedicated to developing innovative therapies for oncology and rare diseases, has made a significant modification to the ratio of its American Depositary Shares (ADS) to ordinary shares. The company's Board of Directors recently approved a new ratio where each ADS will represent 600 ordinary shares instead of the current 15 shares per ADS.

This adjustment is effectively similar to a 1-for-40 reverse stock split, which will drastically reduce the number of outstanding ADSs from approximately 142 million to about 3.6 million. After this change, the ADSs will continue to trade effectively on the Nasdaq Capital Market, while the ordinary shares will remain unaffected and continue trading on the Tel Aviv Stock Exchange.

Details of the New ADS Ratio

The new ratio will officially take effect before trading starts on the Nasdaq, enhancing the trading price of the ADSs while keeping the total number of ordinary shares the same. BioLineRx anticipates that once this ratio change occurs, the trading price of the ADSs will likely increase in response to the adjustment. Nonetheless, the company has cautioned investors that no guarantees can be made regarding the future trading price after the shift.

“With our recent successful financing efforts and a strong cash position, we are well-prepared for the upcoming phases of our operations,” remarked Philip Serlin, Chief Executive Officer of BioLineRx. He noted that the company possesses approximately $29.5 million in cash, which is expected to last them into the latter half of 2026 based on their current plans.

Implications of the Ratio Change

This change in the ADS ratio serves a dual purpose. It aligns with the Nasdaq's low-priced stock rule, making it essential for the company to maintain its listing without hindrance. Compliance with these regulations is crucial for BioLineRx as they continue to work on licensing new assets and advancing their ongoing research projects.

Additionally, shareholders of BioLineRx's ordinary shares listed on TASE are not affected by this change. They will see no alterations in their holdings aside from this modification to the ADS structure.

Actions Required from ADS Holders

No action is needed from holders of ADSs, whether held in book-entry form or through a broker, as they will automatically see the impact of the new ratio reflected in their accounts following the specified date. Holders of ADSs in certificate form will receive further instructions for exchanging their certificates as the date approaches.

About BioLineRx and Its Pipeline

BioLineRx is focused on delivering transformative therapies, such as their leading product APHEXDA® (motixafortide), currently approved for stem cell mobilization in multiple myeloma cases. The firm collaborates with partners like Ayrmid Ltd. and Gloria Biosciences to broaden the impact of their therapies internationally.

The company's commitment to advancing their pipeline involves utilizing their extensive expertise in development, regulatory processes, and commercialization, ensuring that their scientific discoveries transition effectively into therapeutic solutions for patients.

Future Perspectives

As BioLineRx progresses forward with its strategic plans, maintaining a robust presence on the Nasdaq is pivotal. The adjustment to the ADS ratio is a key step towards achieving this aim, reinforcing their commitment to compliance and excellence in the biopharmaceutical landscape.

Frequently Asked Questions

What is the new ADS to ordinary share ratio for BioLineRx?

The new ratio is 1 ADS representing 600 ordinary shares.

When will the new ADS ratio take effect?

It will be effective before the commencement of trading on the Nasdaq Capital Market.

How will this change affect existing ADS holders?

Existing ADS holders will see the change reflected in their accounts without needing to take any action.

What is the significance of this change?

The change aims to comply with Nasdaq listing standards and enhance the marketability of the ADSs.

What are BioLineRx's future plans regarding its therapies?

BioLineRx intends to advance its pipeline and continue to seek out opportunities for in-licensing and collaborations to expand its therapeutic offerings.

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