Things were interesting for Forbes Medi-Tech (or at least its creditors), which saw a new bidder emerge for its assets. A few placements and other deals closed, some lower than expected. See who made it through the heat without wilting this week
Advitech Inc. (TSXV: AVI) has completed the previously announced non-brokered private placement with AgeChem Venture Fund, LP and Avrio Ventures Limited Partnership, for total gross proceeds of $1,500,000 (covered here). As part of the placement, each of AgeChem and Avrio have acquired a total of 15,000,000 ($0.05) Advitech units for $750,000 each. Each Unit is composed of one common share and one (2-year, $0.10) warrant. Proceeds will be used as working capital and for general corporate purposes. AgeChem now has beneficial ownership and approximately 35.01% of the issued and outstanding Advitech common shares on a fully-diluted basis.
Cynapsus Therapeutics Inc. (TSXV: CTH) (formerly Cannasat Therapeutics Inc.) has secured $520,000 in financing for secured debentures. The debentures bear interest at 8% per annum, are payable on December 30, 2011, and are secured by Cynapsus assets. Cynapsus will pay an 8% capital discount to the debenture holders resulting in net proceeds of $478,400. 1,913,600 common shares will be issued at $0.05 per share. Proceeds will be used as working capital. Cynapsus has also decided to cancel the previously announced (and amended) $2.5 million brokered private placement due to market conditions.
Forbes Medi-Tech Inc. (OTC: FMTI) has been advised that Pharmachem Laboratories, Inc. would be prepared to make an offer for all of Forbes’ assets in exchange for cash consideration that exceeds the previously announced purchase price of MHT, LLC, an affiliate of Marco Hi-Tech JV LLC (covered here). The Forbes Board of Directors has entered a confidentiality and standstill agreement with Pharmachem to determine if the proposal can become a firm offer that is financially superior to the MHT transaction. MHT has 5 days to match any superior offer. The Board continues to support the MHT offer and confirms its recommendation that the shareholders vote in favour of the MHT transaction.
The shareholders of Dragon Pharmaceutical Inc. (TSX: DDD) have approved the merger with and into Datong Investment Inc., pursuant to the Agreement and Plan of Merger dated March 26, 2010 (originally covered here). Each outstanding share (other than shares owned by Mr. Han and shares held by any Dragon shareholders who exercised their appraisal rights under Florida law) will be cancelled and converted into the right to receive $0.82 per share. Dragon will terminate its listing on the OTCBB and TSX at the time of merger.
Licensing and Commercial Deals
A5 Laboratories Inc. (OTC: AFLB) has signed an analytical services contract with BioActif Inc. Once A5 obtains its Health Canada laboratory establishment licence, A5 will provide comprehensive analytical and development services for BioActif, including method development, raw materials, and finished goods testing and stability studies.
Interface Biologics Inc. has signed an evaluation and exclusive license option agreement with Fresenius Medical Care. Fresenius will evaluate the use and efficacy of Interface’s Endexo™ technology with components of Fresenius’ dialysis circuits for treating kidney disease. Endexo™ is a self-locating bio-medical polymer additive that enhances the biocompatibility of medical devices, thereby improving their safety and quality. Fresenius may exercise an option for a worldwide exclusive license.
Microbix Biosystems Inc. (MBX: TSX) has signed partnership agreements that will accelerate development of its LumiSort™ technology to determine the sex of their herd prior to conception, and increase livestock fertility rates. The first agreement, with an undisclosed partner in the livestock reproduction products and services industry, consists of a $2 million investment in LumiSort in return for two years of regional exclusivity and 10% of annual revenues. The investment will comprise of an up-front payment and additional milestone payments over the next 18 months. The second agreement is with Microbix’s LumiSort engineering partner, who will design, manufacture and service LumiSort, including proof-of-concept testing. The terms of the agreement were not disclosed.
Genome Canada – CIHR Collaboration
Genome Canada and the Canadian Institutes of Health Research have announced a program called “Advancing Technology Innovation through Discovery”. The program will link next generation sequencing technologies within Genome Canada-funded Science & Technology Innovation Centres with gene discovery projects to help speed the translation to clinical medicine and to advance the adoption of new technologies. The program will focus on childhood diseases with genes that can be quickly identified and with a small number of subjects to ensure the greatest effect. Each party will contribute up to $2 million. Additional funding will be sought to scale up the program and speed up development of results. The first stage of the program will establish national disease consortia to bring together clinicians, geneticists and the Science & Technology Innovation Centres, to allow the rapid assembly of patient resources across Canada and the development of an application for the funding.
ConjuChem has filed for bankruptcy, and its directors and officers have resigned. RSM Ritcher Inc. has been appointed as trustee in bankruptcy.
Thanks again to Keldeagh Lindsay for his help with this week’s Deal Review.