The Cross-Border Biotech Blog

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

Monday Biotech Deal Review: April 5, 2010

The past week was consumed with religious holidays and summer weather, and also with year-end earnings announcements, so there was less deal activity than usual.  Still, there’s about $500 million of goodies to check out after the jump, thanks mostly to MDS and its delightful Dutch auction.

MDS Buyback

MDS Inc. (TSX: MDS) (NYSE: MDZ) announced results of its substantial issuer bid, structured as a modified Dutch auction priced between US$8.10 and US$9.30 per share.  Based on preliminary results, the company will buy back 52,941,176 common shares, out of about 53.1 million shares tendered, at US$8.50 each (= US$450 million). These Common Shares represent 44.1% of the Common Shares currently issued and outstanding.

Sonomax Exchange

Sonomax Technologies Inc. (TSXV: SHH) convinced some of its current noteholders to exchange approximately half of their current notes and accrued interest for new notes. The exchanged principal plus interest resulted in the issuance of new notes in the aggregate principal amount of $706,200, which will mature on March 31, 2011 (out of what appears to have been about $1.8 million outstanding), plus 706,200 (1-year $0.10) warrants. The new notes are convertible into common shares at $0.10 per share. The balance of $588,500 was repaid to the note holders.  Sonomax also provided an update on sales by its international licensees.

Commercial Agreements

  • Cangene Corporation (TSX: CNJ) got a two year extension on its botulism antitoxin contract with HHS’ Biomedical Advanced Research and Development Authority (BARDA), which is tasked with providing “an integrated, systematic approach to the development and purchase of the necessary vaccines, drugs, therapies, and diagnostic tools for public health medical emergencies.” Under the contract, Cangene is required to pursue licensure from the FDA for use of the product, and the extension modifies the delivery schedule for Cangene to deliver 200,000 doses by May 2011 to the new deadline of May 2013. Cangene has delivered approximately half of the contracted doses to date.
  • ProMetric Life Sciences Inc. (TSX: PLI) achieved a technology transfer milestone in a collaboration with Wuhan Institute of Biological Products (“WIBP”), a subsidiary of China National Pharmaceutical Group Corp, China’s largest pharmaceutical company.  WIBP is licensing ProMetric’s technology for use in its GMP facilities.
  • Med BioGene Inc. (TSXV: MBI), presumably taking another step towards its U.S. IPO, engaged KilmerLucas to do cross-border corporate communications and IR.  That initial announcement piqued IIROC’s interest, who wondered what the amount at stake was, so if you (like IIROC) are curious what a KilmerLucas engagement costs, check out the second press release.

Resverlogix Activates YA Global SEDA, But No Draw Down Yet

Resverlogix Corp. (TSX:RVX) activated its $25 million Standby Equity Distribution Agreement with YA Global Master SPV, Ltd., managed by Yorkville Advisors, LLC.  Issuances will occur via draw-down notices to YA Global by Resverlogix, for a maximum of $500,000 per draw down notice. Purchase price of shares will be calculated based on a 5% discount of the market price of Resverlogix’s common shares, and the shares will not be subject to a hold period.

Interested in these deals?  Come see Yorkville Advisors (and other alternative finance folks) at my BioFinance panel in Toronto this Wednesday.

Closings

  • Miraculins Inc. (TSXV: MOM) closed its private placement for aggregate gross proceeds of $510,000 from the sale of 10,200,000 units at a price of $0.05 per unit, as planned. Persons who assisted in finding subscribers were paid a finders’ fee of 10% of the total subscription proceeds made from those subscribers so found.
  • BioExx Specialty Proteins Ltd. (TSX:BXI) closed its bought deal, including a fully-exercised overalotment, for gross proceeds of $17,339,125, thanks to the syndicate led (as previously noted) by Canaccord Financial Ltd. and including Cormark Securities Inc., Wellington West Capital Markets Inc., GMP Securities L.P., Fraser Mackenzie Limited and Loewen, Ondaatje, McCutcheon Limited.

Immunotec Options

Immunotec Inc. (TSXV: IMM) granted an aggregate of 225,000 options to six directors and two officers. The options vest over three years and are exercisable for 5 years at $0.375.

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

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One response to “Monday Biotech Deal Review: April 5, 2010

  1. Pingback: Monday Biotech Deal Review: May 31, 2010 « The Cross-Border Biotech Blog

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