Welcome to your Monday Biotech Deal Review for November 19, 2012. This past week saw the FTC give Valeant formal approval to acquire Medicis. A busy week on the investment front saw Kane Biotech, Lignol and MethylGene announce their intentions to raise capital. We also saw Abattis executing their previously announced licensing agreement with Vertical Design Systems for the use of Vertical’s plants, plant materials and extracts production technology. For more details on these sotries as well as many more, click through below!
MethylGene Inc. (TSX:MYG) has announced its intention to complete a private placement in the United States of Cdn.$26.1 million (the “Offering”). The lead investor of the Offering is Tavistock Life Sciences (“Tavistock”), an insider of the Company, and other insiders participating in the Offering include funds managed by Baker Bros. Advisors, LLC (collectively, “Baker Brothers”), a fund managed by OrbiMed Advisors LLC (“OrbiMed”) and Tang Capital Partners, LP (“Tang Capital” and, together with Tavistock, Baker Brothers and OrbiMed, collectively, the “Insiders”). The Company intends to use the proceeds from the Offering to support ongoing clinical programs for the Company’s two lead programs, MGCD265 and MGCD290.
Kane Biotech Inc. (TSXV: KNE), has announced its intention to undertake a non-brokered private placement offering of up to 18,750,000 units at a price of $0.08 per unit for gross proceeds of up to $1,500,000. Each unit shall be comprised of one common share of the corporation and one share purchase warrant. Each warrant shall entitle the holder thereof to purchase one share at a price of $0.15 per share for a period of 12 months from the date of issuance of the warrant.
Sirona Biochem Corp. (TSXV:SBM) has announced today it has revised the exercise price of incentive stock option grants issued October 11, 2012 and October 18, 2012. The exercise price of these stock option grants has been revised from $0.07 to $0.10 per share.
Medifocus Inc. (TSX-V:MFS) has announced that it will extend the expiry date of 4,090,775 outstanding common share purchase warrants by one year. The warrants were issued by medifocus in November 2008 by way of private placement. The expiry date of the warrants was extended to November 25, 2012 in November 2010. Each warrant entitles the holder to acquire one common share of Medifocus at a price of $0.60. Subject to the regulatory approval, the company will extend the term of the Warrants from November 25, 2012 to November 25, 2013. All other terms and conditions of the warrants will remain unchanged and in full force and effect.
Calyx Bio-Ventures Inc. (TSXV: CYX) has announced the closing of the first tranche of a private placement originally announced on October 23, 2012, of 8,163,999 units of the company at a price of $0.30 per unit for total gross proceeds of $2,449,199. Each unit comprises one common share of the company and one half of one common share purchase warrant. Each warrant is exercisable into one common share of the company for a period of 12 months from closing at an exercise price of $0.60. The funds raised from the issuance of the units will be used to increase the company’s stake in its partially-owned operating subsidiary, Agrisoma Biosciences Inc., and for general working capital purposes.
Lignol Energy Corporation (TSXV: LEC), a leading technology company in the advanced biofuels and renewable chemicals sector, has announced that it has engaged Canaccord Genuity Corp. to sell, on a commercially reasonable efforts basis, up to 26,666,667 units of the company at a price of $0.15 per unit for aggregate gross proceeds of up to $4,000,000. The offering will include Global Securities Corp. and Haywood Securities Inc. Each unit will comprise of one common share of the company and one-half of one common share purchase warrant. Each whole warrant will allow the subscriber to purchase one additional common share of the company for a period of two years from the date of closing at an exercise price of $0.20 per share.
M & Eh
Valeant Pharmaceuticals International, Inc. (TSX: VRX) has announced that the U.S. Federal Trade Commission (FTC) has completed its review of the proposed acquisition of Medicis Pharmaceutical Corporation (NYSE: MRX) by Valeant and has granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR) without conditions. The grant of early termination is effective as of November 15, 2012.
Commercial Agreements & Licensing
Abattis Bioceuticals Corp. (CNSX:FLU) has announced that further to the previously covered news release on October 22, 2012, the Company has executed a formal License Agreement with Vertical Design Systems Ltd. pursuant to which Vertical Designs granted a Bio-Pharma license to the Company which permits Abattis to now grow and produce plants, plant materials and extracts in licensed facilities that it builds in British Columbia utilizing Vertical Design’s patented technology. In addition, Abattis may purchase equipment from Vertical Designs for use at such facilities. Abattis retains the sale and marketing rights attached to all products grown or produced by it at these licensed facilities. Pursuant to the terms of this agreement, Abattis has issued 2,500,000 common shares to Vertical Designs at a deemed price of $0.10/share ($250,000) and will pay an additional $37,000 cash after completion of its next financing. As further consideration, Vertical Designs will be entitled to a 3% royalty on net sales received from the sale of all products grown or produced using Vertical Design’s licensed technologies.
Ceapro Inc. (TSXV: CZO) has announced that it has signed a Letter of Intent with Agriculture and Agri-Food Canada (AAFC) to collaborate in the commercial development of a unique variety of oats developed by AAFC. This new variety of oats will enable Ceapro to extract larger quantities of its flagship product, avenanthramides, which are bio-active compounds exclusively found in oats in very small quantities.