The Cross-Border Biotech Blog

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

Monday Biotech Deal Review: November 15, 2010

Welcome to the Monday Biotech Deal Review for November 15, 2010.  Read on to learn about IMRIS’ proposed U.S. IPO, a mysterious merger in the making, and heart lasers (and how much they go for), together with your usual assortment of private placements, announcements and other biotech news. 

Investment

IMRIS (TSX: IM) announced its initial public offering of common shares in the U.S. The proposed offering include 10,000,000 common shares by the company, as well as 3,700,000 common shares by certain selling shareholders.  IMRIS also received conditional approval to list its common shares on the NASDAQ under the symbol “IMRS”.  The offering is conducted through a syndicate of underwriters led by Canaccord Genuity and Lazard Capital Markets LLC.  IMRIS will grant an over-allotment equal to 15% of the common shares sold, exercisable up to 30 days from closing.  Pricing information has not yet been released.

Oncolytics Biotech Inc. (TSX: ONC) (NASDAQ: ONCY) closed a $25 million dollar bought deal financing by a syndicate of underwriters led by Paradigm Capital Inc. and including RBC Dominion Securities Inc., Canaccord Genuity Corp., and Bloom Burton & Co. Inc. 5,440,000 units of the Company were purchased (plus 816,000 in an over-allotment) at a unit price of $4.60, resulting in gross proceeds of $28.77 million.  Each unit consisted of a common share and one-half of one common share purchase warrant, with each whole warrant exercisable at $6.15 until November 8, 2012.  The offering was made pursuant to a short-form base shelf prospectus dated June 10, 2010.

Lorus Therapeutics Inc. (TSX: LOR) completed a rights offering raising proceeds of $4.6 million. 4.2 million units were issued, at a price of $1.11 per unit.  Each unit consists of one common share, and one common share purchase warrant exercisable into a common share at a price of $1.33 until May 8, 2012, subject to a call option by Lorus if, anytime 6 months from November 9, 2010, Lorus’ common shares trade at or above $2.33 for 5 consecutive trading days.  $4.0 million of the offering was subscribed for by director Herbert Abramson, pursuant to a stand-by purchase agreement.

GeneNews Limited (TSX:GEN) accepted subscription agreements in respect of two private placement offerings for gross proceeds of $2,125,452. One offering was for units, consisting of one common share and one-half of one Series A Warrant and one-half of one Series B Warrant.  Each whole Series A Warrant entitles the holder to acquire one common share at a price of $0.20 for eight months from closing.  Each whole Series B Warrant entitles the holder to acquire one common share at a price of $0.25 for two years from closing.  Proceeds under the unit offering were $1,180,046.  The second offering was for five-year senior 15% redeemable convertible secured debentures, for proceeds of $945,406.  The debentures will be issued at par value and interest is payable only on conversion, redemption or maturity.  In addition, each purchaser of debentures received two Series A Warrants and two Series B Warrants (exercisable on the same terms discussed above) for every $1.00 of principal amount of debentures purchased.  The debentures may be converted anytime GeneNews completes a private placement or prospectus offering of common shares, at a conversion price that is a 10% discount to the offering price, subject to any upward adjustment required to comply with the TSX.  The debentures are also redeemable at the option of GeneNews, at a price of principal plus accrued interest, subject to a right of debentureholders to convert to common shares at that time.  The offerings were subscribed 49% by insiders.

Atrium Innovations Inc. (TSX: ATB) has filed and the TSX has accepted its Notice of Intention to make a Normal Course Issuer Bid for the purchase by Atrium of up to 1,639,617 common shares representing approximately 5% of the 32,792,340 outstanding common shares as at October 31, 2010.  The purchases may commence November 15, 2010, and will terminate November 14, 2011. Purchases by the company will have the effect of increasing the proportionate interest of remaining shareholders on a pro rata basis.

Stem Cell Therapeutics Corp. (TSXV: SSS) filed a preliminary short-form base shelf prospectus in British Columbia, Alberta, Manitoba, Ontario and Nova Scotia. Under the prospectus, Stem Cell will be able to make offerings of common shares, warrants or units for initial aggregate proceeds of up to $15 million, during the next 25 months.

M&Eh

Hard to Treat Diseases, Inc. is targeting a Canadian biotech company (that wishes to remain anonymous) for a merger.  The Canadian biotech deals with blood transfusion products, and is working on validating a product that may reduce major side effects related to transfusions.  The market value for blood transfusions in N.A. is over US$14bn.  According to Hard to Treat Diseases, more details will soon follow.

Collaboration and Licensing

MedGenesis Therapeutix Inc. regained all rights to glial cell line-derived neurotrophic factor protein and related Convection Enhanced Delivery technology from Biovail Laboratories International SRL (owned by Valeant Pharmaceuticals International, Inc. (NYSE: VRX) (TSX: VRX)).

Bellus Health Inc. (TSX: BLU) signed a license agreement with FB Health LLC, under which Bellus granted FB exclusive distribution rights for VIVIMIND™ in Italy for up to €3 million in commercial milestone payments.

Novadaq Heart Laser Purchase

Novadaq® Technologies Inc. (TSX: NDQ) entered a definitive asset purchase agreement with PLC Medical Systems Inc. (OTC: PLCSF), for PLC’s CO2 Heart Laser™ System for Transmyocardial Revascularization.  The purchase price is $1,000,000 cash and assumption of obligations under service contracts valued at approximately $700,000.  Completion is subject to approval by PLC’s shareholders, and is expected to close within 90 days.

More TDP Grants

Medicago USA, wholly owned by Medicago Inc. (TSX: MDG), has been awarded US$244,279 under the Qualifying Therapeutic Discovery Project.  Nuvo Research U.S., wholly owned by Nuvo Research Inc. (TSX: NRIwas also awarded US$1.3 million under the Qualifying Therapeutic Discovery Project relating to 2009 and 2010 research programs pertaining to topical and transdermal formulations under development.

Other Announcements

Lifebank Corp. (TSXV: LBK) granted 100,000 incentive stock options to CFO Jeff Charpentier, pursuant to the company’s stock option plan.  The options are exercisable for 5 years at a price of $0.16 per share.

Labopharm Inc. (TSX: DDS) (NASDAQ: DDSS) received notice from Actavis South Atlantic LLC advising Actavis is seeking FDA approval to market generic versions of OLEPTRO™ in the U.S. before the expiration of Labopharm’s patent in June 2020. Labopharm is in the process of determining its response.

CCAA protected Ambrilia Biopharma Inc. (TSX: AMB) provided its bi-weekly update on its status pursuant to National Policy 12-203, and also announced that the filing of its interim financial statements, MD&A and CEO and CFO certifications for the third quarter ended September 30, 2010 will be delayed beyond the filing deadline, due to a high degree of uncertainty with respect to valuing the company’s assets.

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3 responses to “Monday Biotech Deal Review: November 15, 2010

  1. Pingback: Monday Deal Review: November 22, 2010 « The Cross-Border Biotech Blog

  2. Pingback: Monday Biotech Deal Review: November 22, 2010 « The Cross-Border Biotech Blog

  3. Pingback: Monday Biotech Deal Review: November 29, 2010 « The Cross-Border Biotech Blog

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