BARD1 (ASX:BD1) share price plummets 15% on legal proceedings

The BARD1 (ASX: BD1) share price took a major hit today after the company announced legal proceedings are being brought against it.
The post BARD1 (ASX:BD1) share price plummets 15% on legal proceedings appeared first on The Motley Fool Australia. –

falling healthcare asx share price Mesoblast capital raising

The BARD1 Life Sciences Ltd (ASX: BD1) share price fell off its perch today after the company announced that legal proceedings have commenced against it.

Consequently, shareholders have been rattled by the news, leading to a selloff in the company’s shares. By the market’s close, the BARD1 share price was down 14.51% to $2.71.

What drove the BARD1 share price lower?

The BARD1 share price took a major hit today after the company reported that two founding scientists are pursuing legal action against it. The two scientists were founders and major shareholders of BARD1AG SA, which was acquired from the plaintiffs in 2016, and is now a fully owned subsidiary of BARD1.

The founders commencing the proceedings are Tony Walker and Dr Irmgard Irminger-Finger. Mr Walker and Dr Irminger-Finger had pioneered a simple blood test for screening and diagnosing lung cancer in the early stages prior to the reverse takeover by Eurogold Limited.

As part of the reverse acquisition agreement, both founders were allocated performance shares. Dr Irminger-Finger retains a total of 3.6 million performance shares, while Tony Walker holds a total of 2.95 million. These performance shares are convertible on a one-for-one basis to ordinary shares subject to achieving milestones related to the company’s lung cancer test before the expiration date of 9 June 2021. Given the recent rise in the BARD1 share price, the matter is much more valuable now.

The statement of claim reportedly alleges the following:

Among other things that the Company was subject to obligations to do all things as were reasonably necessary to seek to have the Test satisfy the milestones by the expiry date and not to deprive the plaintiffs of the opportunity to have each of their Performance Shares convert into one ordinary share in the Company.

In addition to:

In breach of those obligations the plaintiffs have been deprived of that opportunity. The proceedings seek damages, costs, interest and such further or other orders as the Court considers just.

BARD1 has been busy with other things

This month alone, the company has released positive announcements regarding its ovarian cancer test and breast cancer test technology. The company’s recent announcements saw the BARD1 share price rocket from 74.5 cents on 10 February to a high of $3.70 on 16 February.

However, there has been no recent news from the company regarding the development of a lung cancer test.

BARD1 noted that it will be reviewing the statement of claim with legal advisors. Furthermore, the company intends to defend the proceedings and will file a comprehensive defence in due course.

Due to the legal nature of this event, BARD1 won’t be making any further comments on the matter.

The BARD1 share price has netted shareholders a 190% return over the past year.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post BARD1 (ASX:BD1) share price plummets 15% on legal proceedings appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!