The Cross-Border Biotech Blog

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

Monday Biotech Deal Review: September 21, 2009

B&W_BigNickelIt was a somewhat quiet week this week (all over the place, apparently) but keep reading for the goods on a cross-border acquisition and a $176 million Canadian offering

Aptilon Healthcare Database Acquisition:

Aptilon Corporation (TSXV: APZ) bought physician-related marketing assets (over 60 databases) from Direct Medical Data, LLC and BLM Incorporated (both of Illinois) for just over US $31.5 million:

  • cash (US $2,000,000),
  • a convertible non-interest bearing promissory note (US $27,200,000) with a lump sum payment on the third anniversary of the closing (US $12,417,000), and
  • 15,000,000 common shares of Aptilon (of which 7,500,000 will be held in escrow for one year, subject to early release triggers) at approximately CDN $0.11 per share.

Aptilon is also assuming approximately US $833,333 in debt plus accounts payable of DMD.

Financing comes from arm’s length investor SIPAR Inc. through a private placement of 4,545,455 common shares.  Aptilon is also issuing a 3-year non-convertible 16% debenture, $1 million to SIPAR and $500,000 to a private investor who also gets 2,300,000 (3-year $0.25) warrants.

SXC’s Busy Week

SXC Health Solutions Corp. (NASDAQ: SXCI; TSX: SXC) announced the offering of 3,500,000 common shares, which was subsequently up-sized to a total of 4,500,000 common shares at $41.50 per share. Net proceeds to SXC are expected to be $176.6 million. There’s also a 675,000 share over-allotment, which would net SXC an additional $26.7 million. The offering is expected to close September 23.

SXC also announced a strategic relationship with Allscripts (NASDAQ: MDRX) to allow SXC clients to exchange prescription information with physicians and others who use Allscripts solutions.

Coda

Welichem Biotech Inc. (TSXV: WBI) closed their post-consolidation private placement raising $3,750,000.

Thanks again to Jacob Cawker for help with the deal review.

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One response to “Monday Biotech Deal Review: September 21, 2009

  1. Pingback: Monday Biotech Deal Review: December 7, 2009 « The Cross-Border Biotech Blog

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