Welcome to your Monday Biotech Deal Review for February 21, 2011. Among other news, Angiotech made some progress this week in CCAA proceedings with respect to its recapitalization, and Merck Canada has made another investment in Quebec’s biopharma sector, investing $6.8M. Read on to learn more.
Angiotech files recapitalization plan under CCAA
The Supreme Court of British Columbia has accepted for filing a plan of compromise or arrangement regarding the recapitalization of Angiotech Pharmaceuticals, Inc. (TSX: ANP) under the Companies’ Creditors Arrangement Act (Canada). The meeting of affected creditors will be held on April 4, 2011. If approved by creditors, the Company will bring a further motion seeking approval of the plan by the court. As well, and further to Angiotech’s litigation with Rex Medical, LP, Angiotech executed a settlement and license termination agreement with Rex Medical, LP, which settles all claims arising under the License, Supply, Marketing and Distribution Agreement dated March 13, 2008, as amended.
The previously announced $4M proposed financing of SemBioSys Genetics Inc. (TSX: SBS) by way of a bond issuance (covered here) has been modified such that the Company will receive the full $4M upfront instead of two tranches of $2M each. The exercise price of detachable warrants that will go with each bond has also been modified from $0.06 to $0.07. Closing is expected on or about February 28, 2011.
Merck Canada invested $6.8M in AmorChem, a Quebec life sciences venture capital fund, which invests in biopharmaceutical research in Quebec, which follows a commitment by Merck Canada to incrementally invest $100M over five years in biopharmaceutical research and development in Quebec.
Adherex Technologies Inc. (TSX: AHX) set February 24, 2011 as the record date for determining the shareholders entitled to receive subscription rights in a previously announced rights offering. Under the offering, Adherex will distribute at no cost to each holder of common stock as of the record date, a transferable subscription right to purchase shares of common stock at a subscription price of $0.03 per unit. One right per share will be distributed to shareholders. Each unit consists of one common share and one common share purchase warrant exercisable at $0.08 per warrant. If fully subscribed, the rights offering will result in gross proceeds of approximately $12.75M, with additional proceeds of up to $34M if the underlying warrants are fully exercised.
Miraculins Inc. (TSXV: MOM) is attempting to incent warrantholders to exercise up to 7,800,000 outstanding unlisted warrants (exercisable at a price of $0.10 per warrant and which expire June 17, 2011) through a warrant incentive program. Under the program, holders who exercise all of their warrants during the 20 days following February 16, 2011 will receive, in addition to the common shares to which they are entitled, half of an incentive warrant for each warrant exercised. Each whole incentive warrant is exercisable into one common share at a price of $0.18, until December 15, 2011.
Shares for Debt
CardioComm Solutions, Inc. (TSXV: EKG) settled $70,000 in outstanding debt to service providers in exchange for issuing 1,400,000 common shares at a deemed price of $0.05 per share.
Securities and Regulatory
Pharmagesic (Holdings) Inc. has reminded shareholders of WEX Pharmaceuticals Inc. that its take-over bid for all outstanding restricted voting shares of WEX will be open for acceptance until 5:00 p.m. (Vancouver time) on February 22, 2011, unless extended or withdrawn.
BioSyent Inc. (TSXV: RX) granted 600,000 incentive stock options which replace, on a one for one basis, options held by directors, officers and employees that expired February 12, 2011. The new options are exercisable at a price of $0.11 until February 14, 2016.
Other Corporate Announcements
Astellas Pharma Canada, Inc. announced that Health Canada approved Protopic(R) for maintenance therapy to prevent flares and prolong flare free intervals in patients with moderate to severe eczema.
Microbix Biosystems Inc. (TSX: MBX) filed new patent applications relating to the continuing development of LumiSort(TM), proprietary technology which will enable breeders to determine the sex of their herd prior to conception.
CCAA-protected Ambrilia Biopharma Inc. (TSX: AMB) provided its bi-weekly status update 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.
Med BioGene Inc. (TSXV: MBI) has responded to the previously announced lawsuit brought by Signal Genetics, LLC (covered here) in the Supreme Court of the State of New York. The Company states that the lawsuit is frivolous, vexatious and without merit, and intends to defend itself vigorously.