Welcome to your Monday Biotech Deal Review for August 29, 2011. In addition to the usual private placement announcements and various commercial transactions, the ongoing hostile bid for Afexa Life Sciences was in the news, with the board of Afexa confirming its recommendation to shareholders to not tender their shares pursuant to the unsolicited bid by Paladin Labs. Read on to learn more.
Afexa Life Sciences Inc. (TSX:FXA) announced that its Board confirmed its previous recommendation that shareholders reject the unsolicited offer by Paladin Labs Inc. (covered here) to acquire all of the outstanding shares for either $0.55 cash per share or 0.013 of one Paladin share per one Afexa share, citing undervaluation of Afexa’s marquee product, COLD-FX. The Board is continuing to search for a white knight. The Directors’ Circular is available on the company website.
Hamilton Thorne Ltd. (TSXV: HTL) has revised the terms of its previously announced proposed private placement. 15,000,000 ($0.20) common shares will be issued for proceeds of US$3.0 million, with most shares issued to insiders, with an expected initial closing of August 31. Also, holders of the convertible subordinated debentures issued in August 2010 and March 2011 may exercise their right to convert the accrued principal interest into common shares at $0.20.
Mitec Telecom Inc. (TSX: MTM) has invested in Covalon Technologies Ltd. (TSXV: COV) by way of a private placement, purchasing 8,320,000 Covalon common shares at a price of $0.30 per common share, representing approximately 9.9% of the issued and outstanding common shares of Covalon on a post-transaction basis. Proceeds to Covalon amounted to $2,496,000.
Innovotech Inc. (TSXV: IOT) has received final acceptance from the TSX Venture Exchange for its previously announced non-brokered private placement (covered here) of 1,181,275 ($0.72) units for proceeds of $850,518. Each unit is comprised of a common share and a one-half (3-year, $0.90) warrant, with a (30-day, $1.35) acceleration clause. Proceeds will be used for general working capital and to support marketing of its veterinary and human test kits and to support efforts to gain regulatory approval of its agricultural industry products.
Valeant Pharmaceuticals International, Inc. (NYSE: VRX; TSX: VRX) has announced that the TSX has accepted Valeant’s Notice of Intention to make a normal course issuer bid, the terms of which will be the company’s right to purchase for cancellation 1,000,000 common shares commencing August 25, 2011. 299,587,764 common shares are outstanding. The bid is part of the previously announced Securities Repurchase Program (covered here), pursuant to which the Board approved the purchase of up to 16 million shares, approved for repurchase through the NYSE. The Repurchase Program will terminate on November 7, 2011 or at such time as Valeant completes its purchases. To date, the Company has purchased 14,969,599 Common Shares through the facilities of the NYSE at a volume-weighted average purchase price of USD $39.46 per share.
Licensing, Collaborations and other Commercial Transactions
VeraLight Inc. and Pear Healthcare Solutions Inc., have announced an agreement for the distribution of the VeraLight’s optical skin measurement for the non-invasive diabetes screening device SCOUT DS in pharmacies across Canada.
Pyng Medical Corp. (TSXV:PYT) announced that the T-POD® pelvic stabilization device has been chosen for a four-year contract by the Romanian Ambulance Services for their fleet of 500 ambulances.
IMRIS Inc. (NASDAQ: IMRS; TSX: IM) has sold an IMRISneuro intraoperative MR imaging system and an iCT intraoperative computed tomography imaging system to a single confidential U.S. customer.
In conjunction with Mitec’s investment in Covalon referred above, Covalon announced that it has signed a strategic alliance agreement with Mitec, to cooperate on the development and commercialization of new-generation biosensors and telehealth technologies that incorporate wireless capabilities.
Special thanks to Keldeagh Lindsay for help with this week’s Monday Biotech Deal Review!