This week’s deals are highlighted by a new TSX-V listed biotech, a $16 million D round, five collaborations a FedDev win for Bioniche, and updates on this month’s flurry of financings.
Bioniche Life Sciences Receives $750,000 Investment
Bioniche Life Sciences Inc. (TSX: BNC) received $750,000 from the Federal Economic Development Agency for Southern Ontario (FedDev Ontario). The investment will support development for a pilot-scale fermentation facility, part of the company’s Animal Health and Food Safety Vaccine Manufacturing Centre, currently under construction at the Belleville facility. FedDev Ontario was created as part of Canada’s Economic Action Plan.
New Public Biotech – Stellar Biotechnologies
Stellar Biotechnologies, Inc. (TSXV: KLH), based in California, is now listed on the TSX Venture Exchange, having closed a CPC transaction in which CAG Capital acquired Stellar Biotechnologies and completed a private placement of 11,397,732 Units at $0.28 per Unit for $3,191,364.96. Each unit consists of one common share and one-half of a ($0.40) warrant expiring October 9, 2011. CAG is continuing Stellar’s business — GMP production of keyhole limpet hemocyanin (KLH), an immune conjugate.
Gemin X Raises $16 Million In Financing Round
Gemin X Pharmaceuticals, a clinical stage biopharmaceutical company developing novel, targeted cancer therapeutics, closed its $16 million Series D round of financing, led by Caxton Advantage Life Sciences Fund LP and Sanderling Venture Partners. In addition, the Series D structure grants certain investors the option to invest an additional $4 million in this financing round in the future.
Immunovaccine Inc. (TSXV: IMV) signed a collaborative agreement with the Dana-Farber Cancer Institute, an affiliate of Harvard Medical School. Immunovaccine will be working on a formulation of Dana-Farber’s HIV protein antigens in Immunovaccine’s DepoVax™ vaccine enhancement and delivery platform to test its efficacy in enhancing immune response.
IntelGenx Corp. (TSXV: IGX) executed a binding term-sheet with Israeli corporation RedHill Biopharma Ltd. to co-develop and license IntelGenx’ first oral thin film product for rapid relief of migraines, based on IntelGenx’ proprietary VersaFilm technology. RedHill would obtain exclusive worldwide rights to market and sell the product in exchange for an up-front, milestone and development fees totalling $2.1 million. IntelGenx would receive 40% of all proceeds including all sales milestones and worldwide product income. IntelGenx is subject to a ninety day exclusivity period; and Redhill will receive a break-up fee if the licensing agreement cannot be executed after satisfactory due diligence.
Cangene Corporation (TSX: CNJ) signed a new agreement with Baxter Healthcare Corporation and terminated an existing U.S. distribution agreement which had granted U.S. distribution rights for WinRho(R) SDF to Baxter since March 2005. Under the new agreement, Cangene obtains commercialization rights to WinRho(R) SDF (Rho(D) Immune Globulin Intravenous (Human)) for the U.S. market. Cangene will begin distributing the product June 1, 2010. Cangene manufactures WinRho(R) SDF in its Winnipeg facility, where it also manufactures HepaGam B(R), Vaccinia Immune Globulin and VariZIG(TM), the Company’s other hyperimmune products that have been approved in the United States and/or Canada.
Axela, Inc., Toronto-based producer of multiplex biomarker tools for proteins, DNA and RNA research and diagnostics, Salomao & Zoppi, diagnostic provider in Sao Paolo, Brazil, and innovations management firm Cria Opportunities Inc., have signed a memorandum of understanding to commercialize Axela’s technology in Brazil and South America. The new Brazilian corporation and Canada-Brazil joint venture will provide for high volume manufacturing of research and diagnostic assays that will in turn be marketed through Axela channels in the rest of the world.
MedMira Inc., (TSXV: MIR) (NASDAQ: MMIRF) is collaborating with UK-based NGO, Advance Aid, to improve the supply chain for rapid diagnostics in regions where the products are most needed, in particular Africa. Together with MedMira’s strategic sales and marketing partner, Vitest AG, the three partners will initially focus their efforts in Eastern African countries such as Kenya, an African hub for humanitarian aid and international organizations, including the World Health Organization, the United Nations, Global Fund, World Bank and many others.
Nightingale Informatix Corporation (TSXV: NGH) completed its previously announced (covered here) comprehensive debt and private placement financings. Proceeds will refinance existing subordinated debt on or before July 30, 2010.
Aeterna Zentaris Inc. (TSX: AEZ ) (NASDAQ: AEZS) completed its previously announced registered direct offering of US$15 million units (covered here) comprised of common shares and warrants to certain institutional investors. Net proceeds received were approximately US$13.7 million.
Biosign Technologies Inc. (CNSX: BIO) closed its brokered private placement announced March 2, 2010 (covered here) and amended April 8, 2010 (covered here) for gross proceeds of about $2 million. 3,077,000 units were issued at a price of $0.65 per unit. Dundee Capital Markets acted as lead agent with Canaccord Adams Ltd. as subagent, they were paid a cash commission of 8% of gross proceeds.
Pacgen Biopharmaceuticals Corporation (TSXV: PGA) arranged a $600,000 non-brokered private placement of subscription receipts as well as a financial restructuring. The company intends to reduce its indebtedness under the restructuring by up to $1.3 million and will seek shareholder approval for a 2:1 share conslidation. Under the financing, the company will issue 10,000,000 subscription receipts at a price of $0.06 per receipt. If the consolidation is approved, the receipt is exercised automatically for one post-consolidation common share per receipt. Although negotiations with creditors are not finalized, the $1.3 million indebtedness to be reduced would include converting approximately $658,000 of outstanding principal and interest under past due debentures into approximately 10,966,667 common shares.
DiaMedica Inc. (TSXV: DMA), in connection with its proposed acquisition of Sanomune Inc., received the order it requested from the Ontario Securities Commission, effective March 25, 2010, exempting DiaMedica from the requirements of Part 5.3(2) of Multilateral Instrument 61-101 and allowing it to obtain the necessary disinterested minority approval for the acquisition by obtaining the written consent of shareholders, in lieu of the cost and expense of holding a shareholders’ meeting to consider the acquisition. DiaMedica has obtained the written consents from shareholders representing approximately 65% of the common shares held by parties eligible to vote for the transaction, as against the majority (50%+1) required. Final acceptance of the Acquisition by the TSX Venture Exchange is conditional upon completion of an offering with proceeds of not less than $3,000,000 received from arm’s length investors.
Thanks again to Jacob Cawker for help with this week’s Deal Review!