Welcome to your Monday Biotech Deal Review for December 12, 2011. Microbix and PharmaGap each completed private placements, together raising over $1 million. As well, Nuvo Research is purchasing the minority interest in its German subsidiary from Dr. Friedrich-Wilherm Kuehne. Read on to learn more.
Securities & Investments
Microbix Biosystems Inc. (TSX:MBX) has closed its previously announced $448,231 public offering of 2,241,158 ($0.20) units (covered here). Each unit is comprised of one common share, one (5-year, $0.25) half warrant and one (3-year, $0.24) warrant. 7% fees in units and cash were paid to Euro Pacific Canada Inc., which acted as agent. Proceeds will be used for R&D.
PharmaGap Inc. (TSXV:GAP) has completed a private offering of 9,060,142 ($0.07) equity units for proceeds of $634,120. Each unit is comprised of one common share and one (3-year, $0.10) warrant. $54,082 and 100,240 warrants were paid as finder’s fees.
Nuvo Research Inc. (TSX:NRI) has entered into an agreement with Dr. Friedrich-Wilhelm Kuehne to acquire his 40% minority interest in Nuvo Research AG. Upon completion of the transaction, which is expected to close in early December, Nuvo Inc. will own 100% of the outstanding shares of Nuvo AG. Nuvo AG owns all of the rights, including intellectual property rights, to WF10 and a manufacturing facility located in Wanzleben, Germany. Dr. Kuehne will receive: US$1.7 million of Nuvo Inc. shares, and 1.6 million shares as repayment for a loan. Dr. Kuehne will retain his right to receive 6% of monies received by Nuvo Inc. from the out-licensing of WF10 and will also receive 6% of money received by Nuvo Inc. when it sells its interest in Nuvo AG. Dr. Kuehne will enter into a 5-year consulting agreement with Nuvo Inc. under which he will continue to provide scientific advice and guidance respecting the continued development of WF10.
Licensing, Collaboration and other Commercial Transactions
Warnex Inc. (TSX:WNX) has sold the assets of Medical Laboratories to Gamma-Dynacare Medical Laboratories for $7.5 million, a portion of which will be used to repay a substantial portion of its 18% convertible outstanding debentures, with 57.2% remaining on the balance of the outstanding debentures. Warnex may also receive up to $2.6 million in consideration in the form of an earn-out based upon the financial performance of the assets for the 12 months following the close of the transaction. Warnex will also lease to Gamma dedicated laboratory and office space for three years. The remaining proceeds will be used for working capital purposes.
Pacific Therapeutics Ltd. (CNSX:PT) has engaged CRBIO of Hyderabad, India to investigate the drug-drug interaction between pentoxifylline and NAC, the active ingredients in the lead drug candidate PTL-202 for the treatment of fibrosis.
Special thanks to Keldeagh Lindsay for help with this week’s Monday Biotech Deal Review!