The Cross-Border Biotech Blog

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

Monday Biotech Deal Review: June 7, 2010

This week saw a resurgence of deal activity on the Canadian landscape. Lots of good news here, including Resverlogix’s [$9.2m] haul and a $30m exit for Montreal’s Resonant Medical.  Not all was sunny though: Cynapsus downsized its unit price and Amorfix just downsized, while the Bankruptcy and Insolvency Act got its own workout (har) this week.

Securities

Resverlogix Corp. (TSX:RVX) launched and “confirmed” an up to $9.2 million unit offering. The units are one common share and 0.4 of a (four-year $4.00) warrant, at $3.30 per unit. The offering was conducted by Bloom Burton & Co. and Haywood Securities Inc. Prior to the offering, Resverlogix had 45,977,086 in issued and outstanding common shares.

Lorus Therapeutics Inc. (TSX: LOR) has filed a preliminary short form prospectus in Ontario, Alberta and British Columbia, and an amendment to the Registration Statement on Form F-1, initial filed in the U.S. on April 6, 2010 (covered here), in connection with an offering of up to $17,500,000 in units. Agents for the placement are Global Hunter Securities, LLC and D&D Securities Inc. for the U.S. and Canada, respectively. Each unit consists of one common share and 0.5 (125% x offering price) warrant. The option price increases by 5% per year to a maximum of 145% of the unit offering price. Lorus may force the exercise of the warrant if the shares are traded at a closing price of at least 225% of the offering price for the five consecutive days.

Imaging Dynamics Company Ltd. (TSX: IDL) has filed a preliminary short form prospectus for a rights offering. The rights and shares will be qualified by the prospectus. The rights will trade for at least 21 days and shareholders will be allowed to subscribe for unlimited common shares to participate in a pro-rate allocation of shares issuable on rights not otherwise exercised. The rights offering is anticipated to close by July 15, 2010. Net proceeds from the offering will provide working capital, new product introductions and general corporate purposes.

Cynapsus Therapeutics Inc. (formerly Cannasat Therapeutics Inc.) (TSXV: CTH) has amended the terms and conditions of the previously-announced brokered private placement due to market conditions (covered here). Each unit will consist of one common share and one (2-year $0.125) warrant (increasing from a half of a 2-year $0.10 warrant) at $0.075 per unit (formerly ($0.10). The warrants are subject to acceleration with a 2–day $0.20 trigger. Expected gross proceeds from the offering remain the same ($2,500,000).

YM BioSciences Inc. (NYSE Amex: YMI, TSX: YM) has raised $3,200,000 USD through a non-brokered private placement of 2,500,000 common shares at $1.27 USD per share. The investment was made by a leading international health-care-specific investment fund after YM’s CYT 387 entered its Phase II trial in treating myelofibrosis at Mayo Clinic. YM is also planning for development of CYT 387 in hematology and oncology given its broad applications.

ZoomMed Inc. (TSXV: ZMD) has closed the second tranche of the previously-announced two-stage private placement offering (covered here). The offering resulted in 12,500,000 issued shares at $0.20 per share for gross proceeds totalling $2,500,000. The proceeds will be used to develop new services and marketing activities.

Ceapro Inc. (TSXV: CZO) will offer its Royalty Interests holders 8,740,487 common shares at $0.09 per share to wipe-out $784,844 of debt. The offer expires on June 31, 2010, and all shares are subject to a hold period of four-months plus-a-day.

Titan Medical Inc. (TSXV: TMD) has granted 600,000 (5-year $0.30) options to a senior officer. The options vest at 150,000 options every six months.

Personnel Files

Neurokine Pharmaceuticals Inc. (OTCBB:NEUKF) has made changes in management, re-appointing Dr. Hassan Salari as officer and director, and appointing Judson Cutler as CFO, following the resignations of Penny Green and Dr. Doroudian. Dr. Doroudian retains his role as CEO, President, and member of the board of directors. Neurokine has also closed a private placement of $20,000 USD at $0.005 per share by a company controlled by Dr. Salari.

Amorfix Life Sciences (TSX: AMF) is suspending commercialization of its blood test for Creutzfeldt–Jakob disease in order to focus on its other five product development programs, as the product failed to detect blood prions in testing. Amorfix has also made changes in management in light of its change in product development. Dr. Robert Gundel, formerly VP R&D has been appointed President & CEO to replace Dr. George Adams who is also stepping down from the Board of Directors. Dr. Neil Cashman, inventor and scientific founder of Amorfix, has been re-appointed to the Board. Five employees directly involved with the vCJD blood test product have been released. Amorfix has sufficient cash to continue development activities for approximately 18 months.

M&Eh

Elekta Instrument AB (LSE:0H09) has acquired Montreal-based Resonant Medical Inc. for $30,000,000, adding new 3D ultrasound solutions for image-guided radiation therapy for cancer treatment to the Sweden-based company. Elekta expects to consolidate RMI into its accounts as of June 1, 2010, with ~$10,000,000 in forecasted revenue for 2010-2011.

Licensing

Amorfix Life Sciences Ltd. (TSX: AMF) and Pan-Provincial Vaccine Enterprise Inc. have entered into a licensing agreement granting Pan-Provincial exclusive worldwide rights to Amorfix’s amyotrophic lateral sclerosis vaccines, including DSE™ and vaccines arising from Amorfix’s ProMIS™ prediction algorithm. This approach enables discovery of antibodies that recognize and inhibit only the misfolded disease protein but not the normal healthy protein. Amorfix retains all rights to develop antibodies and diagnostics for ALS; Pan-Provincial will develop vaccine formulations, finish preclinical studies, and clinical testing at their cost. Upon successful completion of Phase I clinical trials, both parties have the option to commercialize under a cost-sharing and revenue sharing agreement.

Bioniche Life Sciences Inc. (TSX: BNC) has signed a partnership agreement with Bayer Animal Health, a division of Bayer Australia Limited, for the distribution of two cattle reproduction products. Bayer will become the exclusive Australian distributor of Bioniche’s Cue-Mate® and Pregnecol® beef and dairy cattle reproductive performance enhancing products.

Cyplasin Biomedical (CPBM: OTCBB) has signed a binding term sheet agreement with Minapharm SAE (Cairo and Alexandria Stock Exchange: MIPH) for the exclusive right to sell, market, and distribute Cyplasin’s C-Virin Hepatitis C vaccine in the Middle East and North Africa. The agreement includes the right for Cyplasin to distribute and market Minapharm’s version of pegylated interferon-alpha in North America, South America, Korea, Russia, China, and other BRIC counties.

BIA

Noveko International Inc. (TSX: EKO) announced that the assets of its subsidiary, Magnum Pharmaceutics Inc., have been voluntarily assigned pursuant to the Bankruptcy and Insolvency Act. Noveko will not provide additional funds to Magum given that Magnum’s financial position is not expected to improve.

BioSyntech Inc. (TSX: BSY) announced that the Superior Court authorized PriceWaterhouseCoopers Inc. in its capacity as interim receiver to accept the offer submitted by Piramal Healthcare Limited. Pursuant to Piramal’s offer, BioSyntech assets will be sold for $3,900,000, and Piramal will assume $558,080 worth of BioSyntech’s liabilities. The closing asset sale is expected to occur by June 19.

Thanks again to Keldeagh Lindsay for his help with this week’s Deal Review.

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5 responses to “Monday Biotech Deal Review: June 7, 2010

  1. Pingback: Biotech’s Murky IPO Window Increases M&A Attractiveness « The Cross-Border Biotech Blog

  2. Pingback: Monday Biotech Deal Review: June 14, 2010 « The Cross-Border Biotech Blog

  3. Pingback: Monday Biotech Deal Review: June 28, 2010 « The Cross-Border Biotech Blog

  4. Pingback: Monday Biotech Deal Review: July 19, 2010 « The Cross-Border Biotech Blog

  5. Pingback: Monday Biotech Deal Review: July 26, 2010 « The Cross-Border Biotech Blog

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