The Cross-Border Biotech Blog

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

Monday Biotech Deal Review: February 8, 2010

This week’s Canadian biotech deals feature a new private placement, two medical device acquisitions, a truly dedicated CEO, some HIV funding from Merck. Seeking redemption?  

Securities

Protox Therapeutics Inc. (TSX: PRX), which develops receptor-targeted fusion proteins for the treatment of prostate and other cancers, intends to raise up to $8,000,000 in a brokered private placement led by Dundee Capital Markets and co-led by Canaccord Financial Inc. The private placement will offer units priced at $0.55 per unit, with each unit consisting of one common share and one-half of a (2-year $0.70) warrant.

Nuvo Research Inc. (TSX: NRIannounced plans to redeeming its 5% convertible debentures due November 16, 2010 early (on March 12, 2010). A redemption amount of $1,035.75 will be paid for each $1,000 of principal amount of Debentures. Debentureholders have the right to convert their debentures into common shares at a conversion price of $0.138 any time prior to the close of business on the business day immediately preceding March 12, 2010. The maximum amount payable would be $3.61 million if all debentures are redeemed. If, alternatively, all debentures are converted 25.3 million shares would be issued. Further details are found in the trust indenture dated November 16, 2004 and supplemental indentures dated January 1, 2007 and September 16, 2008, electronic copies of which can be found on SEDAR.

Titan Medical Inc. (TSXV: TMDannounced that about a third of the warrants it issued in 2008 were exercised prior to expiry, for total proceeds of $1,198,132.

M&Eh

Savaria Corporation (TSX:SIS), the second largest personal mobility company in North America, is spending $3.9 million paid over four years to acquire Concord Elevator (London) Ltd. The transaction also contemplates a possible share issuance by Concordia of 1,000,000 shares, provided certain (undisclosed) conditions are met.

IMRIS Inc. (TSX: IMentered into a definitive agreement to acquire Calgary-based private company NeuroArm Surgical Limited along with its magnetic resonance-compatible neurosurgical robot. Closing is expected no later than February 8, 2010. IMRIS also entered into a memorandum of understanding with MacDonald Dettwiler and Associates Limited to create the next generation of the technology. No financial terms were disclosed.

Commercial Deals

Merck (NYSE: MRKis providing $1.5 million in funding over three years to Canada’s largest HIV/AIDS research, treatment and education facility, the BC Centre for Excellence in HIV/AIDS in support of its “Seek and Treat for Optimal Prevention of HIV/AIDS” research program, which will expand HIV treatment and care to residents in Prince George and Vancouver’s Downtown Eastside. Health professionals will expand HAART coverage.

SOLABS, which offers QMS software for GMP regulated companies, rolled out new implementations of its SOLABS QM Quality Management Software in two Canadian Life Science Companies (identities undisclosed).

De-Compensating

Quest PharmaTech Inc. (TSXV: QPTborrowed $1 million from its CEO in the form of a $1,000,000 demand loan, to be repaid when the company receives sufficient future license fee/strategic partnership revenue or equity financing.

Thanks again to Jacob Cawker for help with this week’s Deal Review!

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3 responses to “Monday Biotech Deal Review: February 8, 2010

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  2. Pingback: Monday Biotech Deal Review: March 1, 2010 « The Cross-Border Biotech Blog

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