Blocktrade & BioNexus: The Illusion of a Rescue?

While Blocktrade announces ambitious plans for an IPO, the focus is increasingly on BioNexus Gene Lab Corporation, a struggling company that is itself fighting for survival. Sam Tan is not only presented as a director of Blocktrade, but is also CEO of BioNexus, a company already listed on NASDAQ. It is also rumoured that BlockTrade wants to go public through a merger with BioNexus.

But this is precisely where the problem begins. It can be assumed that BlockTrade itself does not meet the requirements for a direct IPO, whether due to a lack of financial stability or inadequate balance sheets. Its connection to Lyconet/myWorld, a company that has been classified as a pyramid scheme multiple times, could also prove problematic. Therefore, it is reasonable to suspect that Blocktrade wants to use BioNexus as a stepping stone for a so-called reverse merger. However, BioNexus is also plagued by massive financial difficulties, which makes this strategy anything but certain.

BioNexus on the verge of collapse? The alarming numbers

A look at BioNexus’ financials paints an alarming picture. While the company still generated moderate profits in 2020 and 2021, the financial downward trend began in 2022. In 2023, the company then suffered a complete collapse.

The negative cash flow is particularly critical: it means that more money is flowing out of the company than is actually being generated. Operating expenses significantly exceed revenues, and financial stability is no longer a given. Although BioNexus still has a certain amount of equity, it is highly questionable whether this is sufficient to offset the increasing liabilities.

A company with such problems hardly seems like a suitable candidate for a credible IPO. Rather, it appears that Blocktrade wants to merge with a struggling company in order to secure the listing on paper.

More questions than answers

According to BioNexus CEO Sam Tan, the decision to use Ethereum as a treasury reserve is a strategic step towards securing the future and financial innovation. However, critics doubt whether this is really a well-thought-out strategy or rather a desperate attempt to attract investors and distract them from the precarious situation.

The hard facts speak for themselves:

• BioNexus has a market capitalisation of only $5.88 million.
• Its share price has fallen 61% in the last 12 months and is currently only $0.32.
• The company’s revenue is $9.26 million, although it is unclear whether this is sufficient to cover its current liabilities.

The threat of delisting from NASDAQ

The situation worsened further when BioNexus received an official warning from NASDAQ on 27 December 2024. The reason for this was the sharp drop in the share price, which fell below the required minimum of USD 1.00 per share. If the company is unable to restore this value by 1 May 2025, it will face permanent delisting from the NASDAQ Capital Market.

In response, BioNexus is apparently planning a reverse stock split to artificially raise the price above the USD 1 mark. However, this rescue attempt is not only highly risky, but has already been rejected by shareholders once. In addition, there were irregularities in the proxy voting, which the company itself described as potentially unauthorised.

A reverse stock split means that several existing shares are combined to visually increase the price. However, this does not change the economic situation of the company. Investors often view this as a negative signal because it shows that the company cannot grow on its own. In many cases, the share price subsequently falls again.

Should BioNexus nevertheless be delisted from NASDAQ, this would have disastrous consequences for the potentially planned reverse merger with Blocktrade. A company that is already fighting for its stock market listing can hardly serve as a stable vehicle for a credible IPO. Instead of creating stability, this connection could itself further plunge Blocktrade into crisis.

A share price in free fall

A look at BioNexus’ share price confirms the critical situation. While the company was still trading at over $30 in 2021, the price has fallen dramatically in recent years. Since 2023, it has been hovering near zero.

It is particularly striking that the price has not been able to stabilise despite individual attempts at recovery. Instead, the downward trend continues. This shows that market confidence in BioNexus is almost exhausted.

The current share price of $0.3288 is well below the crucial $1 mark that BioNexus must reach by May 2025 to avoid delisting. A sustainable price increase seems extremely unlikely given the economic situation.

Conclusion: A risky bet on an uncertain foundation

The crucial question remains: is this really about sustainable growth – or just about somehow getting Blocktrade listed before the problems become unmistakable?

For investors, the situation is more than critical. Those who are blinded by Blocktrade’s ambitious plans should think carefully about investing their capital in such an uncertain future. Before you place your trust in a company like Blocktrade, you should carefully examine the possible risks – otherwise you run the risk of losing your entire capital.

Note: And as always, those affected are welcome to comment on this, or if someone has more or different information, they are welcome to share it with us. We are not interested in making false claims and our primary goal remains the provision of complete documentation.