The Cross-Border Biotech Blog

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

Monday Deal Review: February 23, 2009

Canadian deals and company info this week

  • Medworxx Solutions Inc. (TSXV: MWX) closed its placement, which we mentioned a couple of weeks ago, ending up selling $410,000 principal amount of 14% convertible debentures maturing February 2011.  Bigger than the originally-planned $400,000 but not the full $450,0o0 they discussed earlier this week.  The total finder’s fee was $24,375.
  • Patheon Inc. (TSX: PTI) received an unsolicited offer at $2.00 per share in December from JLL Patheon Holdings LLC (“JLL”), an affiliate of JLL Partners, Inc. of New York, which was an insider bid and necessitated an independent valuation.  Saturday, Patheon announced that BMO Capital Markets has placed the value of Patheon’s restricted voting shares within a range of US$4.20 to US$5.00 per share (C$5.29 to C$6.30 based on exchange rates on February 19, 2009) and

    the Special Committee unanimously believes that the proposed JLL offer substantially undervalues the Company, its earnings potential and future growth prospects.

Licensing and Commercial Deals:

Option and Warrant news:

  • iCo Therapeutics Inc. (TSX-V: ICO), which raised $1.3 million last weekannounced that it granted 100,000 stock options to select Directors of the Company who have not received previous option grants. The options are exercisable for a period of 5 years at a price of $0.18 per share, vesting one-third immediately, one-third in 6 months and the final one-third in 12 months.
  • PharmaGap Inc. (TSX-V: GAP), which issued a large number of shares last week on the conversion of an outstanding debenture, announced that it is issuing 1,190,000 options to directors and officers, plus additional options to employees and consultants, vesting immediately with an exercise price of $0.15 per common share.
  • Amorfix Life Sciences Ltd. (TSX: AMF) announced that it has extended by one year (to March 8, 2010) the term of 4,462,521 common warrants, exercisable for one common share at $1.95.
  • Bioniche Life Sciences Inc. (TSX: BNC) announced that it will extend the expiration date of the up to 8,203,334 common share purchase warrants issued as part of a unit offering that closed in March, 2007. 7,676,554 of these warrants (exercisable at $1.40 per share), currently listed for trading on the TSX (TSX: BNC.WT), will be delisted following their original expiration date of March 13, 2009. At that time, the Company will extend the expiration date of the warrants to May 12, 2009. The expiry date on a further 1,027,308 broker warrants will also be extended by 60 days to May 12, 2009. These are exercisable for units, each consisting of one Bioniche common share and one-half of a warrant to purchase a Bioniche common share at $1.20 per unit.

Other developments:

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One response to “Monday Deal Review: February 23, 2009

  1. Pingback: Canadian M&A Update: JLL Commences Patheon Bid at USD$2.00 per share « The Cross-Border Biotech Blog

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