The Cross-Border Biotech Blog

Biotechnology, Health and Business in Canada, the United States and Worldwide

Monday Deal Review: August 10, 2009

B&W_BigNickelConsidering last week was abbreviated for the August long weekend here in Canada, there’s a decent amount of activity to run through.  Check out this week’s deals

Open and Shut Offerings:

  • Cannasat Therapeutics Inc. (TSX-V: CTH) completed a first tranche of its unit offering, selling 7,509,500 units at a price of $0.10 per unit (one common share plus one 24-month $0.15 warrant).  Sandfire Securities picked up cash commissions of $60,067, a corporate finance fee of $25,000, and 750,950 non-transferable compensation options (at $0.10 per share for two years).
  • Also, as noted on the Twitter streamOncoGenex Pharmaceuticals (NASDAQ: OGXI) sold $9.5 million of straight equity with only $100,000 of expenses.  Luke Timmerman’s article on Xconomy Seattle explains how:

    “instead of hiring an underwriter to pitch the shares, Cormack and Stephen Anderson, the chief financial officer, just started personally calling institutional investors one Friday afternoon in July. After a couple hours, they sold 475,000 shares at $20 apiece, at just a two percent discount to the prior closing price, without any fancy derivatives, or warrants, and without having to pay any of the usual commissions to a banker. The money should give the company about 10 more months of operating cash, to take it to December 2010.”

Right(s) On the Money:

  • LAB Research Inc. (TSX: LRI) filed a preliminary short form prospectus for a $15.6 million rights offering. One right per existing common share, each giving the right to purchase 2.1 common shares at $0.41 per share. Solidarity Fund QFL gave a standby commitment for up to $7.5 million, not to exceed a final position of 49% of the common shares.  Anything over 49% and under $7.5 million will come in as a loan. The Rights Offering is expected to close before the end of September 2009.  The company’s renegotiation of its Canadian banking arrangements is subject to completion of the Rights Offering.  Investissement Quebec is also loaning $5 million, which comes with 598,193 common share warrants exercisable at $0.51 per share until May 3, 2013.

Credit (where credit is due):

Breaking Up Is … Actually Not That Hard To Do:

Not What They Meant by Extended Release:

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3 responses to “Monday Deal Review: August 10, 2009

  1. Pingback: Monday Deal Review: August 17, 2009 « The Cross-Border Biotech Blog

  2. Pingback: NRC-IRAP Is On A Roll: 7 Biotech Investments in 7 Weeks « The Cross-Border Biotech Blog

  3. Pingback: Monday Biotech Deal Review: September 14, 2009 « The Cross-Border Biotech Blog

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