The Cross-Border Biotech Blog

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

Monday Deal Review: December 24, 2012

Welcome to your Monday Biotech Deal Review for December 24, 2012.  While the past week was relatively slow as everyone prepared for holiday breaks, there was nonetheless a series of option grants, commercial agreements and even the closing of a major private placement and conversion of a convertible debenture.  Click onward to see more, and of course, we wish you a wonderful holiday and a happy new year!


Lignol Energy Corporation (TSXV: LEC) a technology company in the advanced biofuels and renewable chemicals sector, announced that it has closed its previously announced private placement for gross proceeds of $4,515,040.50.  Also, in connection with the offering, Wasabi Energy Limited (ASX: WAS) converted the $2,245,770 convertible debenture it held resulting in the issuance of 14,971,800 common shares of the Company at an exercise price of $0.15 per share. Interest payable under the convertible debenture was settled in cash on the date of the closing of the offering. Canaccord Genuity Corp. was engaged to sell 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 with an option granted to the agent to offer up to an additional 6,666,667 units at the issue price for additional gross proceeds of $1,000,000.

BioSyent Inc. (TSXV: RX) announced the grant of 40,000 stock options to certain officers, employees and directors of the company. These newly issued incentive stock options are exercisable at a price of $0.91 up to December 18, 2017.As at the date of this press release the company had 13,271,195 shares issued and outstanding.

Sirona Biochem Corp. (TSXV:SBM) announced that it has granted to directors, officers, consultants, employees and management of the company, a total of 1,550,000 common shares in the capital of the company at a price of $0.10 per common share for a period of five years ending December 17, 2017. The options have been granted under and are governed by the terms of the company’s current stock option plan and are subject to vesting provisions.

Patheon Inc. (TSX: PTI) reminded holders of its restricted voting shares that the company’s current rights offering will expire in 10 days, on December 28, 2012. Rights certificates were mailed on December 3, 2012 to each registered holder of restricted voting shares resident in Canada and the U.S. as of November 27, 2012. Under the terms of the rights offering, all registered holders of rights must validly deliver their completed rights certificates to the subscription agent. The rights will cease trading on the Toronto Stock Exchange at noon (Toronto time) on December 28, 2012.

Licensing and Commercial Agreements

Lorus Therapeutics Inc. (TSX: LOR) has announced that it has signed a collaboration agreement with Brock University for the development of novel anticancer drugs based on chemical derivatives of the natural compound pancratistatin. Under the collaboration, Lorus will test the anticancer activity and drug-like properties of pancratistatin derivatives synthesized by Dr. Tomas Hudlicky’s research group at Brock University. Lorus will contribute 50% of total eligible costs in the form of cash and/or in-kind contributions to the project, and will share jointly with Brock University in new intellectual property created from this collaboration. This collaborative partnership is made possible through funding from the Federal Economic Development Agency for Southern Ontario’s Applied Research and Commercialization Initiative.

Medicago Inc. (TSX: MDG) and Folia Biotech, a private biotechnology firm that focuses on vaccine enhancement using plant virus recombinant protein (papaya mosaic virus) as an adjuvant, announced the receipt of $415,000 in financial support from the Quebec government and the municipality of Quebec City to fund a feasibility study for a unique biopharmaceutical production project, known as BioProduction21, part of the Quebec Region’s Life Science ACCORD Cluster. Medicago and Folia will invest a total of $255,000 in the first part of this initiative, worth approximately $670,000 in total, which is intended to assess the feasibility of developing a globally recognized, high-value-added bioproduction cluster of excellence. Québec International will act as a support organization, mandated to manage the financial assistance.


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