Welcome to your Monday Biotech Deal Review. I hope our American readers had a very happy thanksgiving weekend, but hopefully there’s still some room left for your weekly digest of biotech deals. This week witnessed the closing of the US$52M IMRIS financing [Ed. — as well as a rafter of other deals]. Read on to learn more about these and other deals from the previous week.
IMRIS Inc. (TSX: IM) (NASDAQ: IMRS) completed a public offering (previously covered here) of 10,500,000 common shares by the company and 500,000 common shares by a certain selling shareholder, resulting in aggregate proceeds to IMRIS of US$52,500,000 at a public offering price of US$5.00 per share. Canaccord Genuity and Lazard Capital Markets LLC acted as joint book-running managers for a syndicate of underwriters.
Chemaphor Inc. (TSXV: CFR) completed a private placement and issued a total of 1,920,000 common shares and 810,000 common share purchase warrants for gross proceeds of $192,000. The sale was for units, each unit consisting of one common share and one-half of a common share purchase warrant, at a price of $0.10 per unit. Each whole warrant is exercisable into one common share at a price of $0.10 per warrant, for two years following closing, but are subject to acceleration if, after the initial four month hold period, the closing price of Chemaphor’s common shares exceeds $0.20 for 20 consecutive trading days, in which case the warrants expire 30 days following notice of acceleration. Macquarie Private Wealth and Bloom Burton & Co., as agents, received an aggregate of $19,200 in cash commission as well as warrants to acquire 192,000 common shares.
Cynapsus Therapeutics Inc. (TSXV: CTH) secured financing of a secured Series B debenture in an aggregate amount of $100,000 and bearing interest at a rate of 8% per annum. The debenture is secured against the assets of the Company second to Series A Debentures, and is payable by the company on or before March 24, 2011. The Corporation paid an 8% capital discount resulting in net proceeds of $92,000 and issued 368,000 common shares to the debentureholder at a price of $0.05 per share.
Hard to Treat Diseases, Inc. (PINK: HTDS) stated that its previously announced merger discussions (covered here) are proceeding well, and the merger candidate is Canadian biotech Hb Products Inc., which is involved in validating a product that will reduce major side effects related to blood transfusions.
Collaboration and Licensing
Covidien plc (NYSE: COV) has licensed an innovative drug-delivery platform technology jointly developed between University of British Columbia researcher, Pieter Cullis, and the full drug development platform available at the Centre for Drug Research and Development. The licensed technology allows drugs to be delivered via liposomal nanoparticle technology, and represents the first successful licensing agreement of technology jointly developed between UBC and the Centre for Drug Research and Development.
The Centre for Drug Research and Development and Dalhousie University also signed an affiliation agreement to facilitate collaboration between Dalhousie’s academic investigators and industry-experienced drug development professionals at the Centre for Drug Research and Development.
Medicago Inc. (TSX: MDG) extended its July 2009 partnering agreement with Genepole® for the development of a research laboratory for vaccines and antibody targets to be located at the Genopole® biopark in Evry, France. The extension was executed in the presence of Quebec premier Jean Charest, and the French Minister of Economy, Finance and Industry, Christine Lagarde.
Angiotech Pharmaceuticals, Inc. (NASDAQ: ANPI) (TSX: ANP) announced that Rex Medical LP initiated arbitration proceedings following Angiotech’s notice to Rex under a License, Supply, Marketing and Distribution Agreement between Angiotech US and Rex, dated March 13, 2008, that it would not be commercially reasonable to continue the existing structure of the agreement given Angiotech’s substantially changed business. Rex alleges wrongful termination of the agreement, and is seeking $11 million plus costs. Rex is also seeking injunctive relief in aid of the arbitration, and has obtained a restraining order in the United States District Court for the Southern District of New York requiring Angiotech to continue to perform under the agreement pending determination of whether injunctive relief in favour of Rex should be granted.
SemBioSys Genetics Inc. (TSX: SBS) responded to an inquiry by the Investment Industry Regulatory Organization of Canada regarding the company’s recent market activity. The Company is engaged in discussions with third parties interested in SemBioSys’ Apo AlMilano and recombinant human insulin programs, but no agreement has been executed yet.
Advitech Inc. (TSXV: AVI) granted 300,000 stock options to an officer and director at $0.10 per share pursuant to the company’s stock option plan, which vest in three equal yearly instalments on the first, second and third anniversary from the date of grant.
CCAA-protected Ambrilia Biopharma Inc. (TSX: AMB) provided its bi-weekly Default Status Report under National Policy 12-203 – Cease Trade Orders for Continuous Disclosure Defaults. Since its most recent default announcement on November 10, 2010, there have been no material changes.
A5 Laboratories Inc. (OTCBB: AFLB) has submitted an Establishment License application to Health Canada, which is a required license to manufacture, package and conduct testing of pharmaceutical products. According to the President and CEO, the license is expected within 30 to 90 days.