The Cross-Border Biotech Blog

Biotechnology, Health and Business in Canada, the United States and Worldwide

Monday Biotech Deal Review: April 16 2012

Welcome to your Monday Biotech Deal Review for April 16, 2012. Highlights include deals by Bioniche, Valeant and Bunge and $5 million of equity financings.  Read on to learn more. 

Investments

Pyng Medical Corp. (TSXV: PYT) has announced a $500,000 non-brokered private placement of 5,555,555 ($0.09) units, each comprised of one common share and a three-quarter (4-year, $0.1125) warrant. Proceeds will be used for debt reduction and general working capital.

biOasis Technologies Inc. (TSXV: BTI) has announced a $2,070,000 non-brokered private placement of 1,800,000 ($1.15) units, each comprised of one common share and a (1-year, $1.30) unit. The proceeds from the sale of units will be added to working capital. A 7% finder’s fee may be paid in connection with the private placement.

Critical Outcome Technologies Inc. (TSXV: COT) has announced the completion of the second tranche of its previously announced $1,500,000 non-brokered private placement of 9,375,000 ($0.16) units, each comprised of one common share and a (1.5 year, $0.30) warrant (covered here).

Biotonix (2010) Inc. (TSXV: BTX) has completed the second and final tranche of its previously announced $300,000 ($0.075) private placement of 1,199,997 units (covered here), each comprised of one common share and a (5-year, $0.115) half warrant. Proceeds will be used to finance the proposed reverse takeover of Biotonix by Atman.  Atman is also proceeding with a $425,000 debt financing to fund the cost of the reverse takeover. The loans bear interest at an annual rate of 12% and will be repaid at the closing of the reverse takeover by the issuance of ($0.15) units of Biotonix, each comprised of one common share and a (5-year, $0.23) half warrant.

MedX Health Corp., (TSXV: MDX) has announced a $1,000,000 non-brokered private placement of ($0.15) units, each comprised of one common share and a (1-year, $0.25) warrant. Proceeds will be used to accelerate the expansion of the MoleMate, skin cancer imaging sales and marketing programs.

Debt Financing

Bioniche Life Sciences Inc. (TSX: BNC) has closed a US$20 million financing from investment funds managed by U.S.-based Capital Royalty L.P. and involves a five-year term loan. The terms include a 15% interest rate, with a portion deferred and capitalized for the first three years of the term of the loan. An additional royalty interest of 2% will be paid to Capital Royalty on all product sales revenues for the term of the loan. Repayments begin June, 2015.

M&Eh

Valeant Pharmaceuticals International, Inc. (NYSE: VRX, TSX: VRX) has acquired Pedinol Pharmacal, Inc., a podiatry-focused, privately owned specialty pharmaceutical company based in the U.S., for less than 1.5 times sales. The transaction is expected to be immediately accretive.

MCN BioProducts Inc. has completed the sale of substantially all of its technology assets to Bunge Limited, a leading global agribusiness and food company.

BELLUS Health Inc. (TSX: BLU) has entered into a strategic partnership and financing with Pharmascience Inc. whereby Pharmascience will pay $17.25 million for a 10.4% ownership stake in a new public company, under which 89.6% of New BELLUS will be owned by securityholders of BELLUS Health. All outstanding convertible securities of BELLUS Health will be converted to common equity of New BELLUS or amended to rank equally with the common shares of New BELLUS, at the same price as the Pharmascience investment. Common shares of BELLUS Health will be exchanged on a one-for-one basis for common shares of New BELLUS.

Licensing and Other Commercial Developments

Stellar Biotechnologies, Inc. (TSXV: KLH) has entered into an agreement with the University of Guelph for the exclusive option to license technology for the development of a vaccine candidate against Clostridium difficile infection.

RXT 110 INC. (CNSX: RXT) has amended and restated the intellectual property license agreement announced on March 19, 2012, converting the interim license into a perpetual, world-wide exclusive license for the intellectual property. RXT issued 20,000,000 fully paid and non-assessable Class A shares.  In connection with the completion of the transactions, RXT has also entered into a securities pledge agreement and an escrow agreement to secure the obligations of the counterparties to the license agreement for a minimum of three years.

Special thanks to Keldeagh Lindsay for help with this Monday Biotech Deal Review!

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