BiolineRX has agreed the sale of up to $20 million of its shares to Lincoln Park.
Drug development company BiolineRX Ltd. (Nasdaq: BLRX); TASE:BLRX) has signed a purchase agreement for the sale of up to $20 million of its American Depositary Shares (ADSs) with Chicago institutional investor Lincoln Park Capital Fund LLC.
Under the three-year agreement, BioLineRx will control the timing and amount of any sales to Lincoln Park Capital, which is obligated to make purchases as BioLineRx directs, subject to certain conditions.
We reported a cash position of over $37.5 million as of March 31, 2014, which we expect will support our clinical and operational capital needs through 2016," said BioLineRx CEO Dr. Kinneret Savitsky. “Nevertheless, it has been the company’s policy for several years to maintain opportunistic financing alternatives in order to allow for maximum flexibility to respond to market conditions in real time. In connection with our recent successful public offering, we terminated an ATM agreement that we had maintained, and have decided instead to renew this share purchase agreement with Lincoln Park Capital. We believe this is an excellent future financing alternative for BioLineRX, since we will be able to raise capital on an as-needed basis in small tranches."
Published by Globes [online], Israel business news - www.globes-online.com - on June 1, 2014
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