The Cross-Border Biotech Blog

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

Monday Deal Review: May 13, 2013

Welcome to your Monday Biotech Deal Review for May 13, 2013! This week saw MethylGene make waves with its announcement that it will move its business to the State of Delaware, and will be held by specially made Mirati Therepeutics.  Mirati will then seek listing on the NASDAQ. It is unclear how long the company will be trading on both the TSX and the NASDAQ together. In other news, iCo has priced an overnight marketing of units for proceeds of about $3.2 million, while Sirona has rasied another $1 milllion, beinging their 2013 total to a healthy $2.4 million.  Click on through to get the rest of the past week’s major biotech news!    


Lignol Energy Corporation (TSXV: LEC) has announced that it has provided a A$500,000 loan to Territory Biofuels Limited (“TBF”), in exchange for receiving 2.5 million stock options from TBF, making LEC the majority shareholder of TBF, on a fully diluted basis with a 51.9% shareholding.


Cynapsus Therapeutics Inc. (TSXV: CTH)  has completed its previously announced offering under the company’s short form prospectus dated February 21, 2013, as amended by an amendment dated March 8, 2013.On March 1, 2013, the company completed a first closing of the Offering for gross proceeds of $6,008,000. On March 21, 2013, the company completed a second closing of the offering for gross proceeds of $1,309,160. Total gross proceeds from the first and second closings of the offering are equal to $7,317,160. Concurrent with the first closing of the offering, the company and the holders of Series A to E debentures agreed to convert $4,031,406 in debt for common shares and warrants. In addition, the company completed a share consolidation of the Company’s issued and outstanding common shares on the basis of one (1) new common share for every ten (10) common shares issued and outstanding.

MethylGene Inc. (TSX:MYG) announced that its Board of Directors has approved a proposal to change MethylGene’s jurisdiction of incorporation from the federal jurisdiction of Canada to the State of Delaware in the United States of America by way of a court-approved plan of arrangement. Under the arrangement, MethylGene will create a holding corporation, Mirati Therapeutics, Inc. incorporated in the State of Delaware, and Mirati will become the ultimate parent corporation of MethylGene and its subsidiaries. Concurrently with the arrangement, Mirati is making an application to list its shares of common stock on the NASDAQ Capital Market, which we anticipate will result in the Mirati shares being listed on both NASDAQ and the Toronto Stock Exchange for a period of time.

Functional Technologies Corp. (TSXV:FEB) has received notice that it will be removed from the OTCQX International Marketplace and downgraded to the OTC Pink Current tier for trading, beginning May 9, 2013. This action is a result of the Company filing the Notice to Creditors on May 25, 2013. The Company is eligible to reapply for listing on the OTCQX International Marketplace in the future once it again meets the relevant initial listing standards.

Sirona Biochem Corp (TSXV:SBM)(OTCQX:SRBCF)(FRANKFURT:ZSB)  has closed equity and debt financings for gross proceeds of $975,000, bringing the total capital raise to $2.4 million to date in 2013.

iCo Therapeutics Inc. (TSXV: ICO) has priced an overnight marketed offering.  Pursuant to the offering, iCo will issue an aggregate of 9,170,000 units at a price of $0.35 per unit for aggregate gross proceeds of $3,209,500. Each unit includes one common share and one common share purchase warrant.  Each warrant is exercisable at a price of $0.40 for a period of five years from the closing of the Offering.  Euro Pacific Canada Inc. acted as agent in respect of the Offering, with H.C. Wainwright & Co. LLC and Bloom Burton & Co. as part of the selling group.  H.C. Wainwright & Co. LLC acted as lead U.S. placement agent.   The selling group will be paid a cash commission equal to 8% of the gross proceeds of the offering and will receive that number of compensation warrants which is equal to 5% of the number of units sold pursuant to the offering. 

PharmaGap Inc. (TSXV: GAP) has been notified of a cease trading order by the Ontario Securities Commission due to its failure to file audited annual financial statements and the associated management’s discussion and analysis for the year ended December 31, 2012, and its failure to file the related certifications of these filings.

Commercial & Other Agreements

Ceapro Inc. (TSXV: CZO) has signed an agreement with German-based multinational Symrise (ETR:SY1), the leading provider of active ingredients, for the distribution of selected products to specific key major players in the cosmetic market. Furthermore, Symrise will provide Ceapro with financial support under the form of a significant line of credit until April 1, 2016.

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