The Cross-Border Biotech Blog

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

BioMS’ New Directions — Buys 48% of Spectral Diagnostics, Still Has Dry Powder

BioMS (TSE: MS), which like the kids in Glee* was in need of some re-invention, has entered a new phase.  BioMS announced that it is investing $11.7 million in Spectral Diagnostics (TSE: SDI), which will use the funds to advance its lead product Toraymyxin, a treatment for severe sepsis.  Spectral will pay BioMS $3 million over the next 3 years for clinical, regulatory and capital markets consulting services.

Is this a one-time deal, or the beginning of a shopping spree? Shares of BioMS, which had about $53 million in cash left at the end of September, were up about 7% today.

If you’re done with the idle speculation and ready for the terms of the financing, (which is subject to TSX and Spectral shareholder approval) Spectral will issue 35,000,000 units at $0.40 per unit.  BioMS is taking 30,000,000 units, giving BioMS approximately 48% of the company (post-transaction, but non-diluted) and two Board seats. Each unit consists of one common share and one-half of a 4-year $0.60 warrant.  Desjardins Securities Inc. gets 4-year warrants as compensation, for 1,050,000 shares at $0.40, and a further 525,000 shares at $0.60. GrowthWorks is taking 5,000,000 units and will also get 2,890,625 common shares at closing at a deemed price of $0.40 as repayment of its $1.1 million convertible promissory note.

* In case you’ve been living under a rock: Glee, the FOX tv show (on Global in Canada), is about a fictional show choir named “New Directions” (a phrase that also features prominently in the headline of this post – ta da).

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4 responses to “BioMS’ New Directions — Buys 48% of Spectral Diagnostics, Still Has Dry Powder

  1. Pingback: Tweets that mention BioMS’ New Directions — Buys 48% of Spectral Diagnostics, Still Has Dry Powder « The Cross-Border Biotech Blog -- Topsy.com

  2. Pingback: Monday Biotech Deal Review: December 21, 2009 « The Cross-Border Biotech Blog

  3. Pingback: Monday Biotech Deal Review: February 15, 2010 « The Cross-Border Biotech Blog

  4. Pingback: Monday Biotech Deal Review: May 10, 2010 « The Cross-Border Biotech Blog

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