The Cross-Border Biotech Blog

This week saw a lot of offerings move forward, in the shadow of Anthera’s shrunken and postponed IPO, but the news wasn’t all good in Canada either. ConjuChem filed for restructuring, and other companies are still holding on by their teeth. See who’s who

ConjuChem files for CCAA protection

ConjuChem Biotechnologies Inc. (TSX: CJB) announced that the Superior Court of Quebec has granted an initial order to it under the CCAA.  RSM Richter Inc. will act as monitor.  This follows the announcement (covered here) of the creation of a special committee of Directors to explore and evaluate strategic alternatives.  ConjuChem also announced the resignation of Director Felix J. Baker, stating that there was no disagreement between him and the company.  The filing comes despite the fact that ConjuChem took $5 million from its plan of arrangment with Colabor last July in one of the first SIFT/SR&ED deals.

Securities

Novadaq Technologies Inc. (TSX: NDQ) closed its private placement (covered here) for aggregate proceeds of $7,409,572.  Each unit consisted of one common share and one fifth of a (5-year $3.00) warrant.

Labopharm Inc. (TSX: DDS) (NASDAQ: DDSS) announced that the underwriters fully exercised their over-allotment option, purchasing an additional 1,764,706 units Labopharm’s public offering (covered here).  Net proceeds of the offering will now be approximately US$20.9M.  Deutsche Bank Securities acted as sole book-running manager and Canaccord Adams, Dundee Capital Markets and Versant Partners acted as co-managers in the offering.

Enerkem Inc., whose thermo-chemical technology helps turn waste into biofuels, closed a $53.8 million financing round, including a strategic investment from Waste Management Inc. (NYSE: WM).  Existing Enerkem investors include Rho Ventures, Braemar Energy Ventures and BDR Capital.  Cycle Capital joined Waste Management as new investors.  Details of the specific investment by Waste Management were not disclosed.

TSO3 Inc. (TSX: TOS) filed a final short-form prospectus in all Provinces of Canada connection with a previously announced (covered here) issuance of 10,000,000 common shares for gross proceeds of $16M, and 150,000 common shares sold by co-founder and Chief Scientific Officer Simon Robitaille, for proceeds of $240,000.  Closing is expected to occur March 2, 2010.  The company has granted an over-allotment option for the purchase of 15% of the number of common shares issued for a purchase price of $1.60 per share.  Proceeds will support commercialization of STERIZONE® 125L+ Sterilizer through global channel partner 3M. The securities are not registered in the U.S. 

Protox Therapeutics Inc. (TSX: PRX) revised the terms of its previously announced private placement (covered here).  Instead of intending to raise $8,000,000 by issuing units priced at $0.55 per unit, the company intends to raise approximately $6,500,000 at a price of $0.45 per unit, consisting of one common share and one-half of a (5-year, $0.65) warrant.  Closing is expected mid-March, 2010.  Dundee Capital Markets is the lead agent.

Canadian Rights

Paladin Labs Inc. (TSX: PLB) entered into a distribution agreement with Protherics Inc., a wholly-owned subsidiary of BTG plc (LSE: BGC), under which Paladin receives exclusive Canadian rights to market and sell DigiFab™, which is under review by Health Canada for the treatment of patients with digoxin toxicity or overdose.  Financial terms were not disclosed.

Deferred Payments

Medicure Inc. (TSX: MPH) announced that it has reached an (other) agreement with its lender for a deferral of required payments of US$2.1M until March 14, 2010.  The company is continuing its strategic review process.

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