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SEC filings
20-F
BIOLINERX LTD. filed this Form 20-F on 03/10/2016
Entire Document
 
F - 41

 

BioLineRx Ltd.
 
NOTES TO THE FINANCIAL STATEMENTS
 
NOTE 13 – COMMITMENTS AND CONTINGENT LIABILITIES (cont.)

 
a.
Commitments (cont.)

 
5)
Early Development Program (“EDP”) agreement

On the signature date of an investment agreement with Pan Atlantic Bank and Trust Limited (“Pan Atlantic”) in 2007, BioLineRx also entered into an agreement with Pan Atlantic for the funding of an early development program (the “EDP Agreement”). According to the EDP Agreement, Pan Atlantic undertook to provide grants for the promotion of drug-development projects in the preliminary stages of research in an aggregate amount of up to $5,000,000, in semi-annual “calls” of up to $625,000 each. In parallel, for every dollar of EDP project funding provided by Pan Atlantic, BioLineRx committed to provide twenty cents of funding (i.e., a funding ratio of 5:1). Pan Atlantic’s undertakings under the EDP agreement were not subject to Pan Atlantic being a lender to, or a shareholder of, BioLineRx. During 2012, Pan Atlantic fulfilled its entire $5,000,000 funding commitment under the EDP agreement, and during 2013, the Company utilized the remaining funds available under the program. Amounts recognized as a reduction of research and development expenses in 2013 related to the EDP program were $669,000.

 
b.
Contingent liabilities

Guarantees and liens:

To secure the Company’s lease obligation on its premises, the Company has provided a bank guarantee in the amount of $100,000 for the benefit of the lessor, which was outstanding as of December 31, 2015. As of December 31, 2014, the Company had pledged several dollar-denominated bank deposits in the aggregate amount of $166,000 to secure the lease on its premises.

See Note 9a regarding equipment pledged as collateral to secure a bank loan.