Welcome to your Monday Biotech Deal Review for December 9, 2013!
Hit the break to see this week’s major biotech news.
Kane Biotech Inc. (TSX-V: KNE) (the “Corporation”) announced that it has amended the terms of its 18,035,000 share purchase warrants (the “December 2012 Warrants”) issued on December 14, 2012 by extending the expiry thereof from December 14, 2013 to January 31, 2014. The TSX Venture Exchange has granted its approval for the extension to the term of the December 2012 Warrants. The Corporation also announced the intention of the Corporation to undertake a non-brokered private placement offering (the “Offering”) of a single unit (the “Unit”) comprised of a $500,000 principal amount 2 year 10% convertible redeemable unsecured note (the “Note”) and 4,000,000 share purchase warrants (“Warrants”) for gross proceeds of $500,000. The Note will have a term of two years from the date of issuance and bear interest at a rate of 10% per annum. The Note will be redeemable at any time at the option of the Corporation at an amount equal to the face value of the Note, plus all accrued and unpaid interest, subject to the right of the Note holder to convert the Note into common shares of the Corporation (“Common Shares”) prior to the date of redemption. The Corporation may elect to pay the interest on the Note or the redemption price of the Note in Common Shares, in lieu of cash, at the market price of the Common Shares on such interest payment date or redemption date, subject to the approval of the TSX Venture Exchange. The Note may be converted at the option of the Note holder into Common Shares at a price of $0.15 per Common Share at any time until maturity of the Note. Each Warrant shall entitle the holder thereof to purchase one Common Share at a price of $0.095 for a period of two years from the date of issuance.
biOasis Technologies Inc. (TSX-V: BTI) (the “Company”) announced that, pursuant to the terms of its Stock Option Plan, the company has granted a total of 1,700,000 options to its officers, employees, consultants and members of the board of directors. 1,550,000 of the options are exercisable at a price of $0.97 per share until December 3, 2018 and 150,000 of the options are exercisable at a price of $0.97 per share until December 5, 2014. The options shall vest according to the Company’s stock option plan.
Lorus Therapeutics Inc. (TSX: LOR) (the “Company”) announced that it expects to file a final prospectus relating to the previously announced public offering of 12,730,000 common shares of the Company (the “Offered Shares”) at a price of $0.55 per Offered Share (the “Offering Price”) for aggregate gross proceeds of $7,001,500 (the “Offering”). In connection with the Offering, Lorus has entered into an underwriting agreement with a syndicate of underwriters co-led by Clarus Securities Inc. and Canaccord Genuity Corp. and including Jennings Capital Inc. and D&D Securities Inc. (collectively, the “Underwriters”) to sell the Offered Shares. In addition, the Company has granted the Underwriters an over-allotment option to purchase that number of additional common shares equal to 15% of the Offered Shares sold pursuant to the Offering at the Offering Price for a period ending 30 days following the closing of the Offering (the “Over-Allotment Option”).
Valeant Pharmaceuticals International, Inc. (NYSE: VRX; TSX: VRX) announced that its wholly owned subsidiary, Valeant Pharmaceuticals International, will redeem the remaining $465.5 million aggregate principal amount of its outstanding 6.50% Senior Notes due 2016 CUSIP Nos. 91911XAR5, U9098VAH5 (the “Notes”) and has mailed an irrevocable notice of redemption for the Notes. On November 15, 2013, Valeant Pharmaceuticals International mailed an irrevocable notice of redemption for $450 million aggregate principal amount of the Notes. On December 2, 2013, a copy of the irrevocable notice of redemption with respect to the remaining Notes was mailed to record holders of the Notes.
MaRS Innovation’s first start-up company, Xagenic Inc., announced it has successfully closed a Series B financing round totaling $20 million. New investor Domain Associates, LLC, led the round, joined by existing investors who include CTI Life Sciences Fund and the Ontario Emerging Technologies Fund. Xagenic’s revolutionary AuRA™ (Amplified Redox Assay) technology uses patent-protected nanostructured microelectrodes to permit rapid, enzyme-free, direct detection of nucleic acids from clinical specimens without the need for sample extraction. The entire workflow is automated on a disposable cartridge that runs on a small, easy-to-use system that enables on-demand, near patient molecular testing, empowering clinicians to make treatment decisions for their patients at the time of first consultation.
Commercial & Other Agreements
Medunik Canada and Lucane Pharma announced the conclusion of an exclusive collaboration agreement. Through this agreement, Medunik Canada receives the exclusive Canadian rights to market and distribute a new therapeutic option for patients suffering from Urea Cycle Disorders (UCD), a group of rare diseases involving deficiencies of carbamylphosphate synthetase, ornithine transcarbamylase or argininosuccinate sythetase. This therapeutic option is taste-free, which facilitates medication and favours compliance to treatment.
Alter NRG Corp. (the “Company”) announced that it has signed an agreement to sell Waste2Tricity International (Thailand) Limited (“Waste2Tricity”) an exclusive license for the Thailand market for an initial term of 5 years for a price of $2 million. Waste2Tricity has paid $1 million, with the remaining $1 million payable in December 2014. Waste2Tricity is a UK based developer that is actively developing projects in the UK and Thailand using the Westinghouse Plasma Gasification Technology owned by Alter NRG. Under the terms of the license, Waste2Tricity receives the exclusive use of the Westinghouse Plasma Gasification Technology in the country of Thailand. In addition to the initial exclusive license fee and purchase of the Westinghouse Plasma Equipment, Waste2tricity will pay $3,500 per ton for site licenses and a royalty of $5 per ton of feedstock processed. The initial term is for 5 years during which they must order equipment for two facilities of 250 tons per day or greater in order to extend the license for an additional 5 years. Further extensions to the term are available for the Thailand market if other escalating project milestones are met.
Versatile Systems Inc. (TSX-V: VV) (the “Company”) announced that it will close its Vancouver, Canada head office in order to centralize finance and administrative functions at its operations facility, located in Mechanicsburg, Pennsylvania