Monday Biotech Deal Review: September 28, 2009
September 28, 2009
Posted by on
Lots of deal news this week, including the Canadian action noted at the time: the iCo-CPDD deal and ethica’s in-license transaction. Plus there was plenty of international excitement today (repentance notwithstanding) with Abbott’s $6.6 billion Solvay play and J&J’s new 18% stake in Crucell. Keep reading for a securities-palooza and plenty more
- Sonomax Hearing Healthcare Inc. (TSXV: SHH), which develops in-ear technologies, announced a private placement of 30,000,000 units at a price of $0.025 per unit, consisting of one common share and one ratcheted warrant ($0.05 for the first year, $0.10 for the following four) for maximum proceeds of $750,000. The company says the new offering is intended to accommodate investors who were unable to subscribe to the private placement that closed September 3, 2009. Sonomax also transitioned their EU operations to a licensing arrangement that appears to be their model for future expansion. The licensee is a new entity headed by Sonomax’s former head of European operations.
- SXC Health Solutions Corp. (NASDAQ: SXCI) (TSX: SXC) completed its previously announced public offering of 5,175,000 common shares at $41.50, including the underwriters’ over-allotment, resulting in net proceeds to SXC of approximately $203.3 million.
- ALDA Pharmaceuticals Corp. (TSXV: APH) (OTCBB: APCSF) closed a private placement of 6,000,000 units at $0.25 per unit. Each unit is one common share plus 0ne (non-transferable, one-year, $0.40) warrant (with an acceleration trigger if the shares trade over $0.80).
- Speaking of acceleration, Oncolytics Biotech Inc. (TSX: ONC) (NASDAQ: ONCY) provided notice to holders of warrants issued December 5, 2008 that the expiry date is accelerated to the close of business on Friday, October 23, 2009. This follows a run-up in Oncolytics’ share price that the company says does not reflect any underlying material change.
- Further Patheon-JLL-Lonza developments this week, with Lonza’s exclusivity period extended to October 15th, the Viso-Lizardi Court application for a special meeting adjourned (leaving the next meeting planned for December 15th), and Patheon announcing expanded capabilities at its site in Ferentino, Italy.
- Also in the land of extended cross-border bids, Agrium Inc. (TSX: AGU) (NYSE: AGU) extended the deadline of its exchange offer to acquire CF Industries Holdings, Inc. (NYSE: CF) for $40.00 cash plus one Agrium share per CF share, until midnight on October 22, 2009. Management of CF is ignoring the acquisition offer according to the President and CEO of Agrium, however 11.2 million shares of CF had been tendered as of September 18, 2009.
In Debt to Investissement Québec
Aegera Therapeutics, which fully drew down a $7 million debt facility provided by Investissement Québec in order to fund its oncology and diabetic neuropathic pain programs, currently has its lead product at Phase 2b for an AML indication.
An Academic Collaboration in Flux:
Primera Bioscience Research Inc. is at a turning point in its collaboration with The Hospital for Sick Children. Primera has funded $200,000 of the $300,000 project and has postponed the final payment pending agreement on the research strategy. In the meantime, Primera sold 375,000 common shares at $0.10 per share to arm’s length subscribers — the same price for which common shares were sold under Primera’s 2008 prospectus. The $37,500 gross proceeds will apparently fund Primera’s general and administrative expenses for the next three years.