In Europe’s long struggle between the political establishment and its enemies, the momentum this year is shifting toward nativists, deepening doubts about the continent’s multilateral order and divisions about how to respond.
Reported by Wall Street Journal 41 minutes ago.
EU's Nativist Swing Casts Shadow Over Current Structure's Future
↧
↧
USD/JPY: has been mixed on the back of a mixed set of FOMC minutes, (less hawkish bias)
· *USD/JPY has ... on the back of the FOMC minutes saying that policymakers saw intensified risks around trade policy.*
· ***"Sentiment is set to remain dominant as market participants look to the U.S.-China trade dispute and its anticipated escalation scheduled for Friday." - Scotiabank*
USD/JPY has been mixed on the back of the June FOMC minutes where importantly, they came with the statement that gradual hikes needed amid very strong economy though. Currently, USD/JPy is trading at 110.67.
* *Key take away statements from June minutes:
· Some officials: running economy to hot risks economic downturn.
· Saw fiscal policy supporting economic growth.
· Price moves support outlook for 2% inflation.
· Broad support for gradual rate hikes.
· A few beneficial saw US fiscal policy as upside risk.
· Many business contacts concerned by risks from a trade war.
· So downside risks from emerging markets, Europe.
· Important to watch yield curve slop.
USD/JPY has managed to bounce back from the recent lows of 110.28 where bears have attempted a downside break out on three occasions this month so far and scored a high of 110.70 earlier today in London in an environment of mild risk appetite, weighing on the yen. There was some downside in NY as stocks tanked on the open, although recovered and have been buoyed by hopes that the U.S. and its European counterparts could move to ease trade tensions, (Technology shares and automakers were among the biggest gainers, (after a U.S. official reportedly offered a “zero solution” to car tariffs)).
However, trade tensions are not going to go away while as soon as tomorrow, the U.S. plans to impose $34 billion worth of duties on Chinese products. It was also reported yesterday by Reuters that Beijing is expected to implement its own retaliatory tariffs the same day. Such uncertainties could cap the bullish attempts on the 111 handle while the JPY’s risk safe haven profile leaves it vulnerable to knee-jerk in periods of risk aversion.
*US data:*
· *US: Private sector employment increased by 177K jobs in June vs. 190K expected - ADP*
Elsewhere, the ADP report weighed on the greenback earlier and Services ISM was also a key release along with the ISM non-manufacturing. The ADP report showed that the US private sector added 177K new jobs during the month of June. The headline reading fell short of consensus estimates, pointing to an addition of 190K new jobs, and also worse than the previous month's figure of 178K. The US final June Markit services PMI came in at 56.5 vs 56.5 expected while the June ISM non-manufacturing arrived at 59.1 vs 58.3 expected. All eyes now turn to the nonfarm payrolls tomorrow.
· *US: Private sector employment increased by 177K jobs in June vs. 190K expected - ADP*
*USD/JPY levels*
USD/JPY is holding above the 200-D SMA at 110.14, the Tenkan prop is located a cent lower at 109.19 that falls below the 109.36 key June support. 108.10 is the May 29 low. If the pair is to break higher, an unlikely scenario given the dovish tilt to these minutes, then May's 111.39 high is in sight but comes as a very congested area where the 161.8% of May low & 76.4% of the May drop was located. On the wide, the 112.30's, (Fibos at 112.22/33) remain key upside target. Reported by FXstreet.com 39 minutes ago.
· ***"Sentiment is set to remain dominant as market participants look to the U.S.-China trade dispute and its anticipated escalation scheduled for Friday." - Scotiabank*
USD/JPY has been mixed on the back of the June FOMC minutes where importantly, they came with the statement that gradual hikes needed amid very strong economy though. Currently, USD/JPy is trading at 110.67.
* *Key take away statements from June minutes:
· Some officials: running economy to hot risks economic downturn.
· Saw fiscal policy supporting economic growth.
· Price moves support outlook for 2% inflation.
· Broad support for gradual rate hikes.
· A few beneficial saw US fiscal policy as upside risk.
· Many business contacts concerned by risks from a trade war.
· So downside risks from emerging markets, Europe.
· Important to watch yield curve slop.
USD/JPY has managed to bounce back from the recent lows of 110.28 where bears have attempted a downside break out on three occasions this month so far and scored a high of 110.70 earlier today in London in an environment of mild risk appetite, weighing on the yen. There was some downside in NY as stocks tanked on the open, although recovered and have been buoyed by hopes that the U.S. and its European counterparts could move to ease trade tensions, (Technology shares and automakers were among the biggest gainers, (after a U.S. official reportedly offered a “zero solution” to car tariffs)).
However, trade tensions are not going to go away while as soon as tomorrow, the U.S. plans to impose $34 billion worth of duties on Chinese products. It was also reported yesterday by Reuters that Beijing is expected to implement its own retaliatory tariffs the same day. Such uncertainties could cap the bullish attempts on the 111 handle while the JPY’s risk safe haven profile leaves it vulnerable to knee-jerk in periods of risk aversion.
*US data:*
· *US: Private sector employment increased by 177K jobs in June vs. 190K expected - ADP*
Elsewhere, the ADP report weighed on the greenback earlier and Services ISM was also a key release along with the ISM non-manufacturing. The ADP report showed that the US private sector added 177K new jobs during the month of June. The headline reading fell short of consensus estimates, pointing to an addition of 190K new jobs, and also worse than the previous month's figure of 178K. The US final June Markit services PMI came in at 56.5 vs 56.5 expected while the June ISM non-manufacturing arrived at 59.1 vs 58.3 expected. All eyes now turn to the nonfarm payrolls tomorrow.
· *US: Private sector employment increased by 177K jobs in June vs. 190K expected - ADP*
*USD/JPY levels*
USD/JPY is holding above the 200-D SMA at 110.14, the Tenkan prop is located a cent lower at 109.19 that falls below the 109.36 key June support. 108.10 is the May 29 low. If the pair is to break higher, an unlikely scenario given the dovish tilt to these minutes, then May's 111.39 high is in sight but comes as a very congested area where the 161.8% of May low & 76.4% of the May drop was located. On the wide, the 112.30's, (Fibos at 112.22/33) remain key upside target. Reported by FXstreet.com 39 minutes ago.
↧
Merkel, Orban clash over EU migration policy
Angela Merkel and her Hungarian counterpart have butted heads over how Europe should deal with migrants. Germany's chancellor said there was a need for "humanity," while Viktor Orban called for borders to be closed.
Reported by Deutsche Welle 29 minutes ago.
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GBP/USD: holds in bullish territory although muted on 'cautious' FOMC minutes
· *GBP/USD actually buckled on the cautious minutes, unable to get above the 21-D SMA with conviction. *
· *FOMC minutes: policymakers saw intensified risks around trade policy.*
GBP/USD has been unable to climb on the back of a cautionary set of minutes from the FOMC's June meeting whereby policymakers saw intensified risks around trade policy. Currently, GBP/USD is trading at 1.3215 with a high of 1.3275 and a low of 1.3204.
GBP/USD actually buckled on the minutes despite the dollar giving back some ground in the DXYU, only to gather those pips back, currently trading at 94.48 with the day's range of between 94.1770-94.5900.
*Key take away statements from June minutes:*
· Some officials: running economy to hot risks economic downturn.
· Saw fiscal policy supporting economic growth.
· Price moves support outlook for 2% inflation.
· Broad support for gradual rate hikes.
· A few beneficial saw US fiscal policy as upside risk.
· Many business contacts concerned by risks from a trade war.
· So downside risks from emerging markets, Europe.
· Important to watch yield curve slop.
**Meanwhile, on the domestic front, BoE Gov. Carney expressed “greater confidence” that the UK economy was performing better after the weather-related slowdown in Q1.
Analysts at Scotiabank explained that the latest survey activity – and this week’s UK manufacturing, services and construction PMIs – "certainly bear that notion out and markets are taking note". The analysts added that an August rate hike is now 80% priced in, lifting the pound:
"We remain quite concerned, however, that constructive sentiment on the pound might run into the reality of messy Brexit politics in the next few days as PM May attempts to formulate a workable Brexit policy for all stakeholders. Her latest compromise proposal to settle trade/border issues, which she will detail tomorrow in a cabinet “off-site” at Chequers, has already been rejected by her Brexit Minister. Not a good sign."
*GBP/USD levels*
The pound is holding in bullish territory above the descending channel's resistance line. 1.3252 comes as the first key target to get to and hold above. The price had penetrated that earlier but lacks conviction. It comes as the 21-D SMA which is guarding a run towards 1.3315 Jun 22 high and the 1.3331 weekly cloud top. RSI turns neutral as the price tests the top of the channel's resistance. 1.3461/80 is key ahead of 200-D SMA and 1.3588/1.3600 levels. The 1.3708 level at the 50% Fib of 1.3040-1.4377 remains compelling on the wide. To the downside, the 1.3000's are open below the 1.3040 level, as the Nov 3 low. Deeper, eyes will turn to the 1.29 level. Reported by FXstreet.com 13 minutes ago.
· *FOMC minutes: policymakers saw intensified risks around trade policy.*
GBP/USD has been unable to climb on the back of a cautionary set of minutes from the FOMC's June meeting whereby policymakers saw intensified risks around trade policy. Currently, GBP/USD is trading at 1.3215 with a high of 1.3275 and a low of 1.3204.
GBP/USD actually buckled on the minutes despite the dollar giving back some ground in the DXYU, only to gather those pips back, currently trading at 94.48 with the day's range of between 94.1770-94.5900.
*Key take away statements from June minutes:*
· Some officials: running economy to hot risks economic downturn.
· Saw fiscal policy supporting economic growth.
· Price moves support outlook for 2% inflation.
· Broad support for gradual rate hikes.
· A few beneficial saw US fiscal policy as upside risk.
· Many business contacts concerned by risks from a trade war.
· So downside risks from emerging markets, Europe.
· Important to watch yield curve slop.
**Meanwhile, on the domestic front, BoE Gov. Carney expressed “greater confidence” that the UK economy was performing better after the weather-related slowdown in Q1.
Analysts at Scotiabank explained that the latest survey activity – and this week’s UK manufacturing, services and construction PMIs – "certainly bear that notion out and markets are taking note". The analysts added that an August rate hike is now 80% priced in, lifting the pound:
"We remain quite concerned, however, that constructive sentiment on the pound might run into the reality of messy Brexit politics in the next few days as PM May attempts to formulate a workable Brexit policy for all stakeholders. Her latest compromise proposal to settle trade/border issues, which she will detail tomorrow in a cabinet “off-site” at Chequers, has already been rejected by her Brexit Minister. Not a good sign."
*GBP/USD levels*
The pound is holding in bullish territory above the descending channel's resistance line. 1.3252 comes as the first key target to get to and hold above. The price had penetrated that earlier but lacks conviction. It comes as the 21-D SMA which is guarding a run towards 1.3315 Jun 22 high and the 1.3331 weekly cloud top. RSI turns neutral as the price tests the top of the channel's resistance. 1.3461/80 is key ahead of 200-D SMA and 1.3588/1.3600 levels. The 1.3708 level at the 50% Fib of 1.3040-1.4377 remains compelling on the wide. To the downside, the 1.3000's are open below the 1.3040 level, as the Nov 3 low. Deeper, eyes will turn to the 1.29 level. Reported by FXstreet.com 13 minutes ago.
↧
EUR/USD Technical Analysis: Euro sub-1.1700 shrugs-off FOMC minutes
· *EUR/USD had virtually no reaction following the release of the FOMC meeting minutes. *
· *EUR/USD has retraced 61.8% from daily low to high suggesting that some investors who missed the bull breakout in early Europe might be buying near those levels. *
· *On the other hand, bears see the bullish advance of the last five days as a bull flag in a bear trend and are willing to short near the 1.1700-1.1730 area. A bull breakout above the level might lead to bear capitulation and a move towards 1.1854, the 38.2% Fibonacci retracement from the mid-April-May bear move.*
*EUR/USD 15-minute chart*
Spot rate: 1.1675
Relative change: 0.16%
High: 1.1721
Low: 1.1649
Trend: Bearish sub 1.1700-1.1730Resistance 1 1.1700-1.1720 figure and last week’s high
Resistance 2: 1.1730, 23.6% Fibonacci retracement from mid-April-May bear move
Resistance 3: 1.1800 figure
Resistance 4: 1.1854, 38.2% Fibonacci retracement from mid-April-May bear move
Support 1: 1.1672 June 27 high
Support 2: 1.1640 supply/demand level
Support 3: 1.1600 figure
Support 4: 1.1560 June 14 low
Support 5: 1.1527 last week’s low
Support 6: 1.1508 current 2018 low Reported by FXstreet.com 7 minutes ago.
· *EUR/USD has retraced 61.8% from daily low to high suggesting that some investors who missed the bull breakout in early Europe might be buying near those levels. *
· *On the other hand, bears see the bullish advance of the last five days as a bull flag in a bear trend and are willing to short near the 1.1700-1.1730 area. A bull breakout above the level might lead to bear capitulation and a move towards 1.1854, the 38.2% Fibonacci retracement from the mid-April-May bear move.*
*EUR/USD 15-minute chart*
Spot rate: 1.1675
Relative change: 0.16%
High: 1.1721
Low: 1.1649
Trend: Bearish sub 1.1700-1.1730Resistance 1 1.1700-1.1720 figure and last week’s high
Resistance 2: 1.1730, 23.6% Fibonacci retracement from mid-April-May bear move
Resistance 3: 1.1800 figure
Resistance 4: 1.1854, 38.2% Fibonacci retracement from mid-April-May bear move
Support 1: 1.1672 June 27 high
Support 2: 1.1640 supply/demand level
Support 3: 1.1600 figure
Support 4: 1.1560 June 14 low
Support 5: 1.1527 last week’s low
Support 6: 1.1508 current 2018 low Reported by FXstreet.com 7 minutes ago.
↧
↧
Trump just hit China with massive tariffs, kicking off a trade war — here's what tariffs are, and how they could affect you
**· *President Donald Trump hit Chinese imports to the US with massive tariffs on Friday.*
· *China responded with tariffs on US products.*
· *Tariffs are taxes on imports designed to boost US production of goods.*
· *The new tariffs will cause costs to go up for businesses that use imported goods from China — and possibly jump prices for consumer goods, too.*
--------------------
President Donald Trump's tariffs on $34 billion worth of Chinese goods went into effect at midnight on Friday, which in turn prompted a swift response from the Chinese and kicked off an unpredictable trade war.
The Trump administration said the tariffs are necessary to protect national security and the intellectual property of US businesses. In addition, Trump has repeatedly expressed a desire to shrink the US's trade deficit with China and protect American businesses from being undercut by Chinese producers.
In response to Trump's decision, China announced tariffs of their own on $34 billion of US goods. The attack, and counterattack, appear to have pushed the two countries into a trade war.
*What is a tariff?*
· A tariff, in plain terms, is a tax on goods coming into a country.
· In the US, many tariffs are paid at the time of entry into the US via a customs broker or agent — along with other duties and fees that may apply to the import.
· The idea of a tariff is to push up the price of foreign goods to make the US-made option more attractive.
· In this case, Trump is attempting to get companies to use less Chinese-produced goods and opt for items made in the US or a imported from a more friendly trade ally.
Hans Mikkelsen, a Bank of America Merrill Lynch strategist, said the new taxes will shift the supply and demand for the various goods they are imposed on.
"International Trade 101 analyses the partial equilibrium effects of a tariff as driving a wedge between demand and supply curves, whereby the price goes up and the quantity down," he said in a note to clients.
*What does it mean for businesses?*
· For many businesses that use imported Chinese products, the cost to produce their items will increase, either because the company must use more expensive domestic parts or pay more for the finished products.
· Trump's China tariffs are particularly damaging because they focus on intermediary goods, or parts. US firms, including many small- to medium-sized businesses, use these parts to make finished products.
· By increasing the cost of parts, the tariffs will force companies to either pass on the cost to customers in the form of higher prices, cut costs in other areas like the workforce, or shift operations outside of the US to avoid the tariffs altogether.
For instance, Moog Music, the maker of the legendary Moog synthesizer, recently told customers that the tariffs on Chinese goods will dramatically increase the cost of producing their instruments. To handle this increase, Moog said, the company will either be forced to lay off workers or move its operations outside of the US.
*What does it mean for the average American?*
· Businesses that see the cost of goods rise have three options to make up the losses: cuts costs in other areas, simply absorb the cost and accept lower profit margins, or pass the costs onto consumers.
· The latter option is concerning to economists because it could lead to a slowdown in consumer spending and an uptick in inflation.
Erica York, an analyst at the right-leaning Tax Foundation, explained that increasing the cost of inputs would raise the prices paid by consumers and the income paid to those consumers wouldn't stretch as far.
"Because these higher prices would reduce the return to labor and capital, they would incentivize Americans to work and invest less, leading to lower output," York said.
In all, economists expect the current round of tariffs on China to result in a modest drag on US economic growth. Gregory Daco, head of US economic at Oxford Economics, estimated that Friday's tariffs will result in a 0.1% to 0.2% direct drag on US GDP growth.
But, Daco said, the cascading effects on the US economy could be greater.
"Importantly, these simulated results may under-estimate the shocks to private sector confidence," Daco said. "As we have seen in recent regional Fed surveys, ISM surveys and business confidence readings, US companies are increasingly concerned about the impact of tariffs on their supply chains and input costs."
If businesses are worried about the long-term effects, they may delay investments and hiring plans. This creates a second-level drag on the US economy and could result in a more dramatic slowdown.
*SEE ALSO: IT'S A TRADE WAR: Europe, Mexico, and Canada retaliate against Trump's steel and aluminum tariffs*
Join the conversation about this story »
NOW WATCH: North Korean defector: Kim Jong Un 'is a terrorist' Reported by Business Insider 6 hours ago.
↧
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The Latest on the influx of migrants into Europe (all times local): 2:50 p.m.
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Biofrontera AG: Biofrontera AG will be completing a voluntary review of the February 2018 share issuance
DGAP-News: Biofrontera AG / Key word(s): Miscellaneous
06.07.2018 / 15:19
The issuer is solely responsible for the content of this announcement.
--------------------
*Biofrontera AG will be completing a voluntary review of the February 2018 share issuance *
*Leverkusen, Germany - 06 July 2018* - Biofrontera AG (NASDAQ: BFRA; Frankfurt Stock Exchange: B8F) ("Biofrontera" or the "Company"), an international biopharmaceutical company, today provided clarification in respect to the allegations made by Deutsche Balaton AG. The Company dismisses the allegations in their entirety.
Biofrontera has decided today to obtain the opinion of an unbiased subject-matter expert in order to counter the accusations made by Deutsche Balaton AG and to provide transparency to its shareholders.
*Background*
On January 29th, 2018, Biofrontera announced the decision to increase its share capital by issuing up to 6,000,000 new ordinary shares ("New Shares"). Concurrently, Biofrontera was to close a public offering of American Depositary Shares ("ADSs") in the US and complete the listing of the ADSs on the US stock exchange NASDAQ.
The Company initially offered New Shares to its existing holders of ordinary shares through a preemptive rights offering pursuant to German law. Those shareholders were able to exercise the preemptive rights offering between January 30, 2018 and February 12, 2018 through their brokers.
Only those New Shares that were not subscribed by Biofrontera AG shareholders under the preemptive rights offering (so called "Rump Shares") could be acquired by US investors in the form of ADSs. Concurrently, ADSs were listed on the US stock exchange NASDAQ, through which the Company successfully gained access to the US capital market.
Under the New Share offering, Biofrontera issued ordinary shares at a subscription price of EUR4.00 per share, which was set on February 9, 2018 based on the closing price of EUR5.45 per Biofrontera share in XETRA trading on the Frankfurt Stock Exchange on February 8, 2018. This represents a discount of approximately 26.6%. Note that at that time, the Company's share price had experienced a steep temporary increase after the intention to carry out the capital increase in connection with a US IPO and NASDAQ listing was published on January 11, 2018.
Since then, Deutsche Balaton AG and other persons acting in concert with it have continued to publicly accuse Biofrontera AG of having acted illegitimately with regard to the execution of the capital increase, the US IPO and the US listing.
The main allegations are as follows:
- It was inadmissible to announce a subscription price on February 9, 2018 for the New Share offering as certain brokers (please note: very few only) closed the preemptive rights offering of ordinary shares before the deadline on February 12, 2018.
- It was inadmissible to determine the subscription price of EUR4.00 per share considering the higher closing price of EUR6.00 (which is factually incorrect, see above) for Biofrontera shares at the time of the offering.
- It was inadmissible to use the Rump Shares as basis for the public offering in the US, especially considering Deutsche Balaton AG offered a price of EUR4.40 per share after the announcement of the subscription price of EUR4.00 per share.
Among other things, Deutsche Balaton AG attempted to prevent the share capital increase, which could have caused severe consequences and disadvantages for Biofrontera AG and its shareholders, even in case of only a temporary delay. However, Deutsche Balaton AG's allegations that the fixing of the subscription price on February 9, 2018 was illegal, even immoral, was rejected in court.
In case of a share capital increase as described, German law allows for a company to discount the subscription price by up to 50% compared to the current closing price per share on the stock market. In this case, the subscription price represented a discount of 26.6%.
Management of Biofrontera AG consulted with a major international law firm to obtain an opinion regarding the use of Rump Shares as basis for the public offering in the US. The law firm confirmed, among other things, the existence of a recognized corporate interest, which must be taken into account when using Rump Shares, to complete an additional listing on a foreign capital market.
Overall, the Company dismisses the allegations in their entirety.
Nonetheless, Biofrontera AG, in accordance with the Deutsche Schutzvereinigung für Wertpapierbesitz e.V. (German Association for the Protection of Securities Ownership) (DSW), has decided to obtain the opinion of an unbiased subject-matter expert to counter the allegations made by Deutsche Balaton AG and to provide transparency for its shareholders. Biofrontera will coordinate the selection of the unbiased expert with DSW.
Biofrontera AG will keep its shareholders informed about the further progress and the results of the investigation.
With this approach, the Company aims to meet the obvious need for information and thus, resolve this situation. It should also be noted that it is not in the interest of Biofrontera and its shareholders to settle even further disputes in court, as these also tie up considerable financial and personnel resources, which are better invested in the operational progress for the benefit of the company, the employees and the shareholders.
-END-
*For enquiries, please contact:
Biofrontera AG *
Thomas Schaffer, Chief Financial Officer +49 (0) 214 87 63 2 0
ir@biofrontera.com
*IR Germany: Brainwell Asset Solutions *
Jürgen Benker +49 (0) 152 08931514
*IR UK: Seton Services *
Toni Vallen +44 (0) 207 224 8468
*IR and PR US: The Ruth Group*
IR: Tram Bui
PR: Kirsten Thomas +1 646-536-7035
+1 508-280-6592
*About Biofrontera:*
Biofrontera AG is an international biopharmaceutical company specializing in the development and commercialization of a platform of pharmaceutical products for the treatment of dermatological conditions and diseases caused primarily by exposure to sunlight that results in sun damage to the skin. Biofrontera's approved products focus on the treatment in the U.S. and Europe of actinic keratoses, which are skin lesions that can sometimes lead to skin cancer, as well as the treatment of certain forms of basal cell carcinoma in the European Union. American Depositary Shares representing Biofrontera's ordinary shares are listed on the NASDAQ Capital Market under the symbol "BFRA", and Biofrontera's ordinary shares are listed in the Frankfurt Stock Exchange (B8F, ISIN: DE0006046113). Information is also available at www.biofrontera.com.
*Forward Looking Statements:*
Certain statements in this press release are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the public offering and the intended use of proceeds from the offering. These statements may be identified by the use of forward-looking words such as "anticipate,""believe,""forecast,""estimate" and "intend," among others. Such forward-looking statements are based on the currently held beliefs and assumptions of the management of Biofrontera AG, which are expressed in good faith and, in their opinion, reasonable. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of the Company, or industry results, to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements. These risks, uncertainties and other factors are set forth in the Registration Statement on Form F-1 filed with the SEC, including in the section "Risk Factors," and in future reports that we will file with the SEC. Given these risks, uncertainties and other factors, prospective investors are cautioned not to place undue reliance on these forward-looking statements. The Company does not undertake an obligation to update or revise any forward-looking statement.
--------------------
06.07.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de --------------------
Language: English
Company: Biofrontera AG
Hemmelrather Weg 201
51377 Leverkusen
Germany
Phone: +49 (0)214 87632 0
Fax: +49 (0)214 87632 90
E-mail: ir@biofrontera.com
Internet: www.biofrontera.com
ISIN: DE0006046113, NASDAQ: BFRA
WKN: 604611
Listed: Regulated Market in Dusseldorf, Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Hamburg, Munich, Stuttgart, Tradegate Exchange; Nasdaq
End of News DGAP News Service Reported by EQS Group 6 hours ago.
06.07.2018 / 15:19
The issuer is solely responsible for the content of this announcement.
--------------------
*Biofrontera AG will be completing a voluntary review of the February 2018 share issuance *
*Leverkusen, Germany - 06 July 2018* - Biofrontera AG (NASDAQ: BFRA; Frankfurt Stock Exchange: B8F) ("Biofrontera" or the "Company"), an international biopharmaceutical company, today provided clarification in respect to the allegations made by Deutsche Balaton AG. The Company dismisses the allegations in their entirety.
Biofrontera has decided today to obtain the opinion of an unbiased subject-matter expert in order to counter the accusations made by Deutsche Balaton AG and to provide transparency to its shareholders.
*Background*
On January 29th, 2018, Biofrontera announced the decision to increase its share capital by issuing up to 6,000,000 new ordinary shares ("New Shares"). Concurrently, Biofrontera was to close a public offering of American Depositary Shares ("ADSs") in the US and complete the listing of the ADSs on the US stock exchange NASDAQ.
The Company initially offered New Shares to its existing holders of ordinary shares through a preemptive rights offering pursuant to German law. Those shareholders were able to exercise the preemptive rights offering between January 30, 2018 and February 12, 2018 through their brokers.
Only those New Shares that were not subscribed by Biofrontera AG shareholders under the preemptive rights offering (so called "Rump Shares") could be acquired by US investors in the form of ADSs. Concurrently, ADSs were listed on the US stock exchange NASDAQ, through which the Company successfully gained access to the US capital market.
Under the New Share offering, Biofrontera issued ordinary shares at a subscription price of EUR4.00 per share, which was set on February 9, 2018 based on the closing price of EUR5.45 per Biofrontera share in XETRA trading on the Frankfurt Stock Exchange on February 8, 2018. This represents a discount of approximately 26.6%. Note that at that time, the Company's share price had experienced a steep temporary increase after the intention to carry out the capital increase in connection with a US IPO and NASDAQ listing was published on January 11, 2018.
Since then, Deutsche Balaton AG and other persons acting in concert with it have continued to publicly accuse Biofrontera AG of having acted illegitimately with regard to the execution of the capital increase, the US IPO and the US listing.
The main allegations are as follows:
- It was inadmissible to announce a subscription price on February 9, 2018 for the New Share offering as certain brokers (please note: very few only) closed the preemptive rights offering of ordinary shares before the deadline on February 12, 2018.
- It was inadmissible to determine the subscription price of EUR4.00 per share considering the higher closing price of EUR6.00 (which is factually incorrect, see above) for Biofrontera shares at the time of the offering.
- It was inadmissible to use the Rump Shares as basis for the public offering in the US, especially considering Deutsche Balaton AG offered a price of EUR4.40 per share after the announcement of the subscription price of EUR4.00 per share.
Among other things, Deutsche Balaton AG attempted to prevent the share capital increase, which could have caused severe consequences and disadvantages for Biofrontera AG and its shareholders, even in case of only a temporary delay. However, Deutsche Balaton AG's allegations that the fixing of the subscription price on February 9, 2018 was illegal, even immoral, was rejected in court.
In case of a share capital increase as described, German law allows for a company to discount the subscription price by up to 50% compared to the current closing price per share on the stock market. In this case, the subscription price represented a discount of 26.6%.
Management of Biofrontera AG consulted with a major international law firm to obtain an opinion regarding the use of Rump Shares as basis for the public offering in the US. The law firm confirmed, among other things, the existence of a recognized corporate interest, which must be taken into account when using Rump Shares, to complete an additional listing on a foreign capital market.
Overall, the Company dismisses the allegations in their entirety.
Nonetheless, Biofrontera AG, in accordance with the Deutsche Schutzvereinigung für Wertpapierbesitz e.V. (German Association for the Protection of Securities Ownership) (DSW), has decided to obtain the opinion of an unbiased subject-matter expert to counter the allegations made by Deutsche Balaton AG and to provide transparency for its shareholders. Biofrontera will coordinate the selection of the unbiased expert with DSW.
Biofrontera AG will keep its shareholders informed about the further progress and the results of the investigation.
With this approach, the Company aims to meet the obvious need for information and thus, resolve this situation. It should also be noted that it is not in the interest of Biofrontera and its shareholders to settle even further disputes in court, as these also tie up considerable financial and personnel resources, which are better invested in the operational progress for the benefit of the company, the employees and the shareholders.
-END-
*For enquiries, please contact:
Biofrontera AG *
Thomas Schaffer, Chief Financial Officer +49 (0) 214 87 63 2 0
ir@biofrontera.com
*IR Germany: Brainwell Asset Solutions *
Jürgen Benker +49 (0) 152 08931514
*IR UK: Seton Services *
Toni Vallen +44 (0) 207 224 8468
*IR and PR US: The Ruth Group*
IR: Tram Bui
PR: Kirsten Thomas +1 646-536-7035
+1 508-280-6592
*About Biofrontera:*
Biofrontera AG is an international biopharmaceutical company specializing in the development and commercialization of a platform of pharmaceutical products for the treatment of dermatological conditions and diseases caused primarily by exposure to sunlight that results in sun damage to the skin. Biofrontera's approved products focus on the treatment in the U.S. and Europe of actinic keratoses, which are skin lesions that can sometimes lead to skin cancer, as well as the treatment of certain forms of basal cell carcinoma in the European Union. American Depositary Shares representing Biofrontera's ordinary shares are listed on the NASDAQ Capital Market under the symbol "BFRA", and Biofrontera's ordinary shares are listed in the Frankfurt Stock Exchange (B8F, ISIN: DE0006046113). Information is also available at www.biofrontera.com.
*Forward Looking Statements:*
Certain statements in this press release are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the public offering and the intended use of proceeds from the offering. These statements may be identified by the use of forward-looking words such as "anticipate,""believe,""forecast,""estimate" and "intend," among others. Such forward-looking statements are based on the currently held beliefs and assumptions of the management of Biofrontera AG, which are expressed in good faith and, in their opinion, reasonable. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of the Company, or industry results, to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements. These risks, uncertainties and other factors are set forth in the Registration Statement on Form F-1 filed with the SEC, including in the section "Risk Factors," and in future reports that we will file with the SEC. Given these risks, uncertainties and other factors, prospective investors are cautioned not to place undue reliance on these forward-looking statements. The Company does not undertake an obligation to update or revise any forward-looking statement.
--------------------
06.07.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de --------------------
Language: English
Company: Biofrontera AG
Hemmelrather Weg 201
51377 Leverkusen
Germany
Phone: +49 (0)214 87632 0
Fax: +49 (0)214 87632 90
E-mail: ir@biofrontera.com
Internet: www.biofrontera.com
ISIN: DE0006046113, NASDAQ: BFRA
WKN: 604611
Listed: Regulated Market in Dusseldorf, Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Hamburg, Munich, Stuttgart, Tradegate Exchange; Nasdaq
End of News DGAP News Service Reported by EQS Group 6 hours ago.
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Digital Isle of Man Joins the British Blockchain Association
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In Pics: Yami Gautam's travelogue on her Serbian workcation is proof that she has fallen in love with the Balkan country
Yami Gautam, who will play the role of an intelligence officer in her upcoming film 'Uri', recently got to spend some time in Serbia while shooting the first schedule of the film with Vicky Kaushal. The actress took some time off her busy schedule to explore the country with her sister Surilie, who also accompanied her on the trip. Yami penned down her experiences in a travelogue.
*Give it a read -*
Serbia is a Balkan country smack in the middle of Central and Eastern Europe with prominent Eastern European and Central European countries sharing its borders. However, it’s not the locale or the destination that had me intrigued with this quaint little country; it was the vibe that I got from it. A country bustling with excitement and yet quiet in its approach to the fast paced life of other European countries.
Nestled in the confluence of the Sava and Danube rivers, Belgrade is the largest city in Serbia, and rightly so! I have never witnessed so much energy and excitement in a city that is known for its churches and Neo Byzantine architecture. Upon my arrival in the capital, I fell in love with the sights and sounds of the city! For what it’s worth, Belgrade has a lot to offer, especially in terms of culture entertainment. A hub of festivals, the city hosts an array of global cultural events throughout the year. Although not a fast paced city like London or New York, Belgrade has its old charms that can keep a tourist enticed like me in its wholesomeness.
The first place I visited was the St Sava’s Church, a Serbian Orthodox Church. One of the largest orthodox churches in the world, the St Sava’s Church transported me to the era of the Ottomans. The whole place had this aura to it. It was magical!
For those who know me, they are well aware that I love to travel. Visit new places, meet new people, learn about new cultures, etc. etc. My work allows me the liberty to visit places that are worth seeing and live in an environment that’s chaotic yet calm, all at the same time. The Belgrade Fortress was one such place!
A post shared by Yami Gautam (@yamigautam) on Jun 6, 2018 at 8:57am PDT
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A post shared by Yami Gautam (@yamigautam) on Jun 14, 2018 at 9:46am PDT
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A post shared by Yami Gautam (@yamigautam) on Jun 16, 2018 at 11:02pm PDT
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A post shared by Yami Gautam (@yamigautam) on Jul 1, 2018 at 3:26am PDT
A post shared by Surilie Gautam (@surilie_j_singh) on Jun 17, 2018 at 2:04am PDT
The ‘Beogradska Tvrđava’ is a monument of cultural importance and is the most visited place in the whole of Belgrade. When we visited this ancient monument, it was like we were a part of the history of this great structure. It perfectly balanced the chaos of the buzzing tourists, yet kept its calmness intact! It made me feel very much at peace.
I have tried to see as much of this beautiful city as I could. Whenever I had time off from my shoot, Surilie and I would head off to find some new corner or a quiet cafe where we could try the delicious local food like Krofne or the Gribanica (equally fantastic dishes, by the way). Despite not being able to see much of Serbia, I have come back, with a heavy heart and a suitcase full of memories, wanting to go back for more.
Signing off for now,
Yami Gautam
Article Type:
Report
Sections:
Bollywood
Entertainment
Authors:
DNA Web Team
Agencies:
DNA webdesk
Tags:
Yami Gautam
Uri
Serbia
Travel & Tourism
Fri, 6 Jul 2018-07:56pm
Date updated:
Friday, 6 July 2018 - 8:35pm
Article Images:
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From Print Edition:
Highlights: Reported by DNA 3 hours ago.
*Give it a read -*
Serbia is a Balkan country smack in the middle of Central and Eastern Europe with prominent Eastern European and Central European countries sharing its borders. However, it’s not the locale or the destination that had me intrigued with this quaint little country; it was the vibe that I got from it. A country bustling with excitement and yet quiet in its approach to the fast paced life of other European countries.
Nestled in the confluence of the Sava and Danube rivers, Belgrade is the largest city in Serbia, and rightly so! I have never witnessed so much energy and excitement in a city that is known for its churches and Neo Byzantine architecture. Upon my arrival in the capital, I fell in love with the sights and sounds of the city! For what it’s worth, Belgrade has a lot to offer, especially in terms of culture entertainment. A hub of festivals, the city hosts an array of global cultural events throughout the year. Although not a fast paced city like London or New York, Belgrade has its old charms that can keep a tourist enticed like me in its wholesomeness.
The first place I visited was the St Sava’s Church, a Serbian Orthodox Church. One of the largest orthodox churches in the world, the St Sava’s Church transported me to the era of the Ottomans. The whole place had this aura to it. It was magical!
For those who know me, they are well aware that I love to travel. Visit new places, meet new people, learn about new cultures, etc. etc. My work allows me the liberty to visit places that are worth seeing and live in an environment that’s chaotic yet calm, all at the same time. The Belgrade Fortress was one such place!
A post shared by Yami Gautam (@yamigautam) on Jun 6, 2018 at 8:57am PDT
A post shared by Yami Gautam (@yamigautam) on Jun 7, 2018 at 7:44am PDT
A post shared by Yami Gautam (@yamigautam) on Jun 9, 2018 at 8:32am PDT
A post shared by Yami Gautam (@yamigautam) on Jun 10, 2018 at 4:27am PDT
A post shared by Yami Gautam (@yamigautam) on Jun 12, 2018 at 9:09am PDT
A post shared by Yami Gautam (@yamigautam) on Jun 14, 2018 at 9:46am PDT
A post shared by Yami Gautam (@yamigautam) on Jun 15, 2018 at 10:47am PDT
A post shared by Yami Gautam (@yamigautam) on Jun 16, 2018 at 11:02pm PDT
A post shared by Yami Gautam (@yamigautam) on Jun 17, 2018 at 8:04am PDT
A post shared by Yami Gautam (@yamigautam) on Jun 18, 2018 at 4:07am PDT
A post shared by Yami Gautam (@yamigautam) on Jun 23, 2018 at 12:54am PDT
A post shared by Yami Gautam (@yamigautam) on Jul 1, 2018 at 3:26am PDT
A post shared by Surilie Gautam (@surilie_j_singh) on Jun 17, 2018 at 2:04am PDT
The ‘Beogradska Tvrđava’ is a monument of cultural importance and is the most visited place in the whole of Belgrade. When we visited this ancient monument, it was like we were a part of the history of this great structure. It perfectly balanced the chaos of the buzzing tourists, yet kept its calmness intact! It made me feel very much at peace.
I have tried to see as much of this beautiful city as I could. Whenever I had time off from my shoot, Surilie and I would head off to find some new corner or a quiet cafe where we could try the delicious local food like Krofne or the Gribanica (equally fantastic dishes, by the way). Despite not being able to see much of Serbia, I have come back, with a heavy heart and a suitcase full of memories, wanting to go back for more.
Signing off for now,
Yami Gautam
Article Type:
Report
Sections:
Bollywood
Entertainment
Authors:
DNA Web Team
Agencies:
DNA webdesk
Tags:
Yami Gautam
Uri
Serbia
Travel & Tourism
Fri, 6 Jul 2018-07:56pm
Date updated:
Friday, 6 July 2018 - 8:35pm
Article Images:
Short URL:
dnai.in/2
Embargo:
Syndicate:
Hide lead image:
Page views:
1
From Print Edition:
Highlights: Reported by DNA 3 hours ago.
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