Welcome to your Monday Biotech Deal Review for November 28, 2011. Notable events from the previous week include the announcement of a fully-subscribed brokered private placement by Resverlogix for proceeds of $17.5 million, as well as the announcement by Valeant of an agreement to acquire iNova (Valeant’s appetite for acquisitions continues, unabated), a prescription and OTC seller and distributor operating in the Asia Pacific region and South Africa. Read on to learn more.
Investment
Resverlogix Corp. (TSX: RVX) has entered into an agency agreement with MLV & Co to act as agent on a best efforts basis for a private placement to subscribers in certain jurisdictions outside Canada of up to 14,819,476 ($1.18) common shares for proceeds of $17.5 million. The agent has received signed subscription agreements from investors representing the proposed entire amount of the offering. Eastern Capital Limited will purchase 13,200,000 common shares of the Company pursuant to the offering, which represents 17.8% of the 74,097,383 common shares outstanding after giving effect to the offering. Proceeds will be used to fund R&D, general and administrative expenses, increasing working capital and for other general corporate purposes.
Microbix Biosystems Inc. (TSX: MBX) has completed an overnight, marketed offering of 2,213,158 ($0.20) units for proceeds of $442,631. Each unit is comprised of one common share, one-half of one (5-year, $0.25) warrant, and a (3-year, $0.24) warrant. Proceeds will be used for R&D.
biOasis Technologies Inc. (TSXV: BTI) has announced a $1,012,500 non-brokered private placement of 2,250,000 ($0.45) units with a 20% overallotment. Each unit is comprised of one common share and a 2-year warrant exercisable at $0.60 for the first year and $0.70 for the second year. Proceeds from the sale of units will be used for working capital purposes. An 8% finder’s fee will be paid in connection with the placement. biOasis has also entered into a research, evaluation and option agreement with Shire Human Genetic Therapies, Inc. to evaluate biOasis’ lysosomal storage disorder Transcend technology. Shire has been granted options to obtain a license to biOasis’ Transcend technology.
Securities
RepliCel Life Sciences Inc. (OTCBB: REPCF) has announced that all of its Class C preferred shares have been converted on a 5:1 ratio into 2,600,000 common shares, subject to a timed release schedule of 15% per quarter beginning January 1, 2013. Following this conversion, a total of 43,150,006 Common Shares are issued and outstanding.
Debt Financing
Response Biomedical Corporation (TSX: RBM) has entered into a $2 million loan agreement with Orbimed Advisors LLC affiliates that is payable by March 31, 2012, or upon the completion of certain equity financings. Response will pay an $80,000 commitment fee and amounts drawn down bear interest at 4.5% per annum. The lenders have the right to appoint an additional director to the board. The loan will be used for working capital and other general corporate purposes.
M&Eh
Valeant Pharmaceuticals International, Inc. (NYSE: VRX, TSX: VRX) has agreed to acquire iNova, a private pharmaceutical group that sells and distributes a range of prescription and over-the-counter products in Australia, New Zealand, Southeast Asia and South Africa from Archer Capital, Ironbridge and other minority management shareholders, for AUS$625 million and AUS$75 million in potential milestones.
Licensing & Other Commercial Developments
Aeterna Zentaris Inc. (NASDAQ: AEZS, TSX: AEZ) and Hikma Pharmaceuticals PLC (LSE: HIK) have signed an exclusive commercialization and licensing agreement for the registration and marketing of perifosine, Aeterna Zentaris’ lead anti-cancer compound, for the Middle East and North Africa. Aeterna Zentaris will supply perifosine to Hikma Pharmaceuticals on a cost-plus basis and is entitled to receive double-digit royalties on future net sales of perifosine in the region. In return, Aeterna Zentaris will receive an upfront payment and additional payments upon achieving certain milestones in the aggregate of $2 million.
Special thanks to Keldeagh Lindsay for help with this week’s Monday Biotech Deal Review!
