Welcome to your Monday Biotech Deal Review for January 30, 2012. Juicy news from last week include the $15M bought-deal that Oncolytics entered into with a syndicate of underwriters, as well as the closing of other private placement financings. Read on to learn more.
Oncolytics Biotech Inc. (TSX:ONC, NASDAQ:ONCY) has entered into a 3,572,000 ($4.20) common share syndicated bought deal for proceeds of $15,002,400. The syndicate consists of Paradigm Capital Inc., Canaccord Genuity Corp., RBC Capital Markets, Bloom Burton & Co. Inc., and Byron Capital Markets Ltd. The syndicate also has an over-allotment option to purchase up to an additional 15% of shares sold on the same terms and conditions as the offering. If the over-allotment option is exercised in its entirety, the aggregate proceeds will be approximately Cdn$17,252,760. The transaction is expected to close on or about February 8, 2012. Proceeds will fund its ongoing Phase III combination REOLYSIN® and paclitaxel/carboplatin trial, other clinical development and R&D activities, and for general corporate and working capital purposes.
Micromem Technologies Inc. (CNSX: MRM) has completed a non-brokered, arm’s length private placement of 145,000 ($0.10) units and a non-brokered, non-arm’s length private placement of 625,000 ($0.10) units to a company insider, each comprised of one common share and one (1-year, $0.12) warrant. The proceeds from the offering will be used for general working capital purposes and the shares will be subject to resale restrictions.
Gemoscan Canada, Inc. (CNSX:GES) has closed its previously announced $847,000 non-brokered private placement of 2,419,999 ($0.35) units each comprised of one Class A share and a one half (2-year, $0.55) warrant (covered here). Finder’s fees of $58,310 were paid in a combination of cash and units. Proceeds will be used to enhance Gemoscan’s cash position and strengthen its working capital position.
Annidis Corporation (TSXV: RHA) will raise $2,000,000-$4,000,000 by way of private placement of 5,000,000-10,000,000 ($0.40) units each comprised of one common share and a (3-year, $0.80) half warrant. Proceeds will be used for working capital purposes, including procuring inventory and to expand the sales and services part of the business.
Pacgen Biopharmaceuticals Corporation (TSXV: PGA) has closed its previously announced $300,000 private placement of 5,376,350 ($0.0558) common shares to CurieMed Corporation.
Aeterna Zentaris Inc. (TSX: AEZ, NASDAQ: AEZS) is commencing a new ATM issuance program under which it may, at its discretion, from time to time during the term of the sales agreement, sell up to a maximum of 10,400,000 of its common shares at US $16 million through ATM issuances on the NASDAQ. MLV will act as sales agent for any sales made under the ATM. The common shares will be sold at market prices prevailing at the time of the sale of common shares, and, as a result, prices may vary.
Other Commercial Developments
Medizone International, Inc. and Canmedical have signed a Letter of Understanding in which a new division of Canmedical will become an AsepticSure distributor. Canmedical and Reliance Associates LLC have formed a joint venture to establish, fund and operate throughout Canada. Under the agreement, this new division of Canmedical will have exclusive rights to the National Canadian Veterinary Market for AsepticSure and to its current client base of fifty hospitals in Ontario. As part of the agreement with Medizone, Canmedical has committed to an initial order of four AsepticSure decontamination systems for delivery in Q2.
ProMetic Life Sciences Inc. (TSX:PLI) has received a $2.5 million purchase order under its ongoing supply agreement woth Octaplas®LG for PrioClear™, a proprietary prion capture resin incorporated into Octapharma’s manufacturing process for its solvent/detergent treated plasma product.
Roche (OTCQX: RHHBY) has entered into a strategic alliance with Technoclone, to co-develop a complete range of coagulation assays. The alliance supports plans Roche announced in October 2011 to develop a new line of analyzers for the central coagulation lab, which will be marketed under Roche’s cobas® brand. The new line is expected to be introduced in the U.S. and Canada in 2014, subject to regulatory approval and other requirements. As part of the alliance, Roche will also market Technoclone’s range of Research Use Only products that address the needs of specialists and researchers in the hemostasis research community.
Special thanks to Keldeagh Lindsay for help with this week’s Monday Biotech Deal Review!