Monday Biotech Deal Review: November 9, 2009
November 9, 2009
Posted by on
Some closings, some new deals, some MDS and some PBM all in this week’s deal review.
- Capital Pool Company Calotto Capital Inc. (TSXV: TTO.P) closed its Qualifying Transaction with Hamilton Thorne, Inc., and will start trading as a Tier 2 issuer under the new symbol “HTL” following final Exchange approval. Hamilton Thorne makes advanced laser systems and instruments for stem cell research. The concurrent private placement, together with debt conversion, raised $2,200,000 (gross) through the issuance of 18,098.655 units at a price of $121.556 per unit. Each unit is one share of common stock plus one warrant. LOM (still no BioQuest) acted as sole agent and received a cash commission of $135,720 (8% of the aggregate gross proceeds) plus 1,447.892 non-transferable broker warrants (exercisable for 18 months at $121.556) equal to 8.0% of the units sold.
- Oncolytics Biotech Inc. (TSX:ONC) (NASDAQ: ONCY) saw 100% of eligible warrants exercised and received proceeds of approximately $9.1 million, in advance of the accelerated expiry date. Oncolytics now has about $23.7 million cash on hand, and 56,662,469 shares outstanding.
- IMRIS Inc. (TSX:IM) closed its bought deal, issuing 3,697,250 common shares for gross proceeds of approximately $20.7 million.
- GLG Life Tech Corporation (TSX: GLG), following a 4:1 reverse split, is offering 3,625,000 common shares (with a 30-day 15% overalotment) via a Canadian short form prospectus and an initial U.S. public offering (per this MJDS filing). GLG has received conditional approval to list its shares on NASDAQ under symbol “GLGL” following the offering. The lead underwriters are Canaccord Adams and GMP Securities L.P.; and Roth Capital Partners, LLC, Desjardins Securities Inc., and Wellington West Capital Markets Inc. are also in on the deal.
- Medicago Inc. (TSXV: MDG) is doing a $10 million bought deal for 14,000,000 subscription receipts. The syndicate is led by Paradigm Capital Inc. Each receipt represents the right to receive one unit of Medicago (one common share plus one half of a 12-month $1.00 warrant) upon the conversion date, (at the latest December 15, 2009). Proceeds will be used primarily for development of influenza vaccines, and closing is expected on or about November 30, 2009.
MDS Inc. (TSX:MDS) (NYSE:MDZ) And Danaher Corporation (NYSE: DHR) received a second HSR request regarding the sale of MDS Analytical Technologies, which will extend the applicable waiting period. MDS and Danaher estimate the Second Request relates to a global market segment which generates $50 million in annual revenues for all sellers combined.
MDS also closed the sale of its Central Labs operation to private investment group Czura Thornton in Jersey, Channel Islands.
SXC Health Solutions Corp PBM contract
SXC Health Solutions Corp. (NASDAQ: SXCI) (TSX: SXC) announced that its informedRx PBM unit won a four-year contract to provide pharmacy benefit management (PBM) services to Spectral Solutions LLC (which manages an annual drug spend of $50 million), starting on January 1, 2010.
Thanks again to Jacob Cawker for help with this week’s deal review!