Welcome to your Monday Biotech Deal Review for October , 2012. A busy week on the licensing front saw commercial deals involving ProMetic Life Sciences, Abbatis Bioceuitcals and Paladin Labs. In addition, Aeterna Zenatris closed their $15.2 million USD public offering, which we covered last week. Get the whole story on this week’s biotechnology news by clicking through.
Sirona Biochem Corp. (TSXV:SBM), a biotechnology company specializing in carbohydrate chemistry technology, has announced it is arranging loans in the total amount of up to CDN $1,000,000 from several arm’s length parties. The loans will be used to pursue the advancement of the company’s proprietary technology, and will be due eighteen months from the date of advancement of the funds and interest will be paid on the outstanding amount of the Loans at a rate of 12% per annum. The company will issue share purchase warrants equal to 40% of each loan at a deemed value of $0.05 per warrant. Each warrant will entitle the holder thereof to purchase one common share of the company for a period of 18 months from the date of issue at a price of $0.10 per common share.
Aeterna Zentaris Inc. (TSX: AEZ) (NASDAQ: AEZS) has closed its previously announced public offering of 6.6 million units generating net proceeds of US$15.2 million, with each unit consisting of one common share and 0.45 of a warrant to purchase one common share, at a purchase price of US$2.50 per unit. Each warrant is exercisable for a period of five years at an exercise price of US$3.45 per share. The company intends to use the net proceeds from the offering to continue to fund its ongoing drug development activities, particularly for the continued development of perifosine in multiple myeloma and the advancement of its AEZS-108 and AEZS-130 programs, as well as for general corporate purposes and working capital.
ProMetic Life Sciences Inc. (TSX: PLI) has announced today the signing of two strategic agreements with Shenzhen Hepalink Pharmaceutical Co., LTD, (“Hepalink”). The commercial agreement relates to a research and development project based on ProMetic’s proprietary protein technologies and includes $11 million in licensing fees and milestone payments to ProMetic, of which $2 million is payable upfront. In addition, ProMetic shall receive further funding for product development activities to be performed on behalf of Hepalink. The strategic investment, which is in addition to the commercial agreement, consists of a $10 million equity investment in ProMetic at a premium share price of $0.204 per share (or 63% over the October 15, 2012 closing share price). Hepalink’s $10 million equity investment in ProMetic is in exchange of the issuance of 48,147,053 shares of the corporation at a share price of $0.204, representing approximately 10.02% of ProMetic’s 480,678,926 outstanding shares on a post transaction basis.
Abattis Bioceuticals Corp. (CNSX:FLU) has announced that it has signed a Letter of Intent (“LOI”) with Vertical Design Systems Ltd. (“VDSL”). This commences the process of conducting a sixty day due diligence time period and begins the creation of a definitive agreement to acquire the exclusive rights for the area of BC to a BioPharma licence and the Vertical Design System equipment.
Paladin Labs Inc. (TSX: PLB) has announced that it has entered into a licensing and distribution agreement with Dynamiclear Australia, an Australian-based natural healthcare company, under which Paladin receives the exclusive rights to market and sell Dynamiclear Rapid™ in Canada. Dynamiclear Rapid™ is a novel, over-the-counter (“OTC”) product for the symptomatic treatment of cold sores. In addition, Paladin also received an option to acquire the same territorial rights to Dynamiclear’s antiviral formulation for Herpes Simplex Virus-2 infections which is currently under development.