Monday Biotech Deal Review: December 7, 2009
December 7, 2009
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This was a fairly busy week for Canadian biotech deals, including a new brain-y collaboration for MaRS; peace at Patheon; some overallotment and some underallotment; some diversification by Canadian pharma (even if not on quite the scale of Pfizer’s deal with Protalix); and some trans-Atlantic acquisitiveness of a Canadian company’s own devicing [sic., sorry]. Don’t stop now…
Securities (funny you should call them that)
- On the good news front, Oncolytics Biotech Inc. (TSX: ONC) (NASDAQ: ONCY) announced that the full over-allotment of 637,500 units was exercised by underwriters Oppenheimer & Co. Inc., Canaccord Capital and Bloom Burton & Co., bringing the total haul on the unit offering to US$14,662,500.
- The Jenex Corporation (TSXV: JEN, Frankfurt: JNX), which makes heat-based medical products, completed a $162,700.23 private placement of units last week, despite being in the midst of a suspended annual meeting, a cease trade from the Alberta Securities Commission and having trading halted on the TSX-V. The company’s new managment notes that resuming compliance and trading is “[a]nother priority following completion of [the] financing,” along with “re-launch under its new management team and Board; marketing support for its products; restructuring costs; settlement payments to former management and certain trade creditors; and for working capital and general corporate purposes.” Kingsdale Capital Markets acted as agent for an 8% cash commission and 10% warrants.
- SQI Diagnostics Inc. (TSXV: SQD) closed the private placement that it launched a few weeks ago. The deal was launched as a $16 million common share offering, but SQI ended up with a much more typical 2009 offering of units (1 common share plus 1/2 of a 2-year $4.00 warrant), selling 2,398,104 units at $2.75 per unit for gross proceeds of about $6.6 million.
IPs Passing in the Night (One South-bound and one North-bound license)
Imaging That (Radiological Society of North America (RSNA) meeting spurs deals)
Black and Scholes Kidnap Schrodinger’s Cat (uncertainty is optional)
- Aptilon Corporation (TSXV: APZ), which markets pharmaceutical, biotech and medical device companies’ products to physicians through its online tools, added Robert H. Steinfeld, LL.M., J.D. to its Board and granted a total of 7,580,000 stock options, of which 6,200,000 were issued to directors and officers. Each option is valid for five years, is exercisable at a price of $0.105, and vests over three years in even quarterly fractions. Aptilon acquired database assets from Direct Medical Data in September, and is putting DMD’s three partners to work in various Director and Officer positions at DMD Marketing Corp., a wholly-owned Aptilon subsidiary.
- Amorfix Life Sciences (TSX: AMF) decided not to accelerate the expiry of its warrants after all. A 10-day VWAP of $1.20 triggered the acceleration announcement in October, but the shares spent much of last week trading under the $1.00 exercise price. The warrants will retain their original April 29, 2011 due date.