Monday Deal Review – August 18, 2014

Welcome to your Monday Biotech Deal Review for August 18th, 2014!

The past week saw Valeant continue its aggressive bid for shares of Allergan, with Valeant extending the expiration of its exchange offer to December 31, 2014.  On the financing side, Supreme Pharmaceuticals has announced a private placement worth up to $5 million in order to fund a proposed Kincardine facility.

For details on these stories as well as many more, keep reading this week’s deal review.

Valeant Pharmaceuticals International, Inc. (NYSE/TSX: VRX) announced that it has extended the expiration of its exchange offer to acquire all of the outstanding shares of Allergan, Inc. (“Allergan“) (NYSE: AGN) to 5:00 p.m., New York City time, on December 31, 2014. The exchange offer was previously scheduled to expire at 5:00 p.m., New York City time today, Friday, August 15, 2014. All other terms and conditions of the exchange offer remain unchanged.

MEDNAX, Inc. (NYSE:MD), the national medical group specializing in neonatal, anesthesia, maternal-fetal, pediatric cardiology, and other pediatric physician services, announced the signing of a definitive agreement to acquire MedData, Inc., a rapidly-growing provider of revenue cycle management services, including professional and facility coding, billing and collections, as well as an industry leading early out/patient pay solution, to emergency department, hospitalist, and other physician specialty groups, as well as to hospitals.

Resverlogix Corp. (TSE:RVX) has closed the previously-announced amendments which provided for the loan granted to Resverlogix by Citibank, N.A. to be increased by $30 million to $68.8 million, as more particularly described in the management information circular dated July 14, 2014.

Supreme Pharmaceuticals Inc. (“Supreme” or the “Company”) (CSE:SL) announced that it is undertaking a non-brokered private placement of up to 20 million units in the capital of the Corporation (“Units”) at a price of $0.25 per Unit for aggregate gross proceeds of up to $5 million (the “Offering”). Each Unit will consist of one common share in the capital of the Corporation (“Common Share”) and one-half of one Common Share purchase warrant (a “Warrant”), with each whole Warrant entitling the holder to purchase one additional Common Share for $0.50 for a period of 12 months from closing of the Offering. Closing is expected to occur on or about September 15, 2014. The Company may pay commissions to brokers who assist in completion of the private placement in accordance with applicable law and the policies of the Canadian Securities Exchange. The proceeds from the Offering shall be used to fund the development of the Company’s Kincardine facility and general working capital purposes.

BIOSENTA INC. (“Biosenta” or the “Company”) (CSE:ZRO), has announced that it has successfully completed an over-allotment of the issuance of Convertible Debentures announced on June 26, 2014. In that announcement, the Board had approved the sale of $1 million of debentures to fund working capital and sales expenses. Due to high demand, the Board has now approved an over-allotment of an additional $465,000. The terms of the debentures include a term of 2 years, interest payable quarterly at 6% per annum, and an automatic conversion to equity at 40 cents per common share at any time after the share price has traded at 50 cents or higher for more than 30 days. Upon conversion to common shares, for each share converted, a full warrant exercisable at $1.00 and having a term of 2 years from the date of conversion will also be issued. The debentures have maturity dates ranging from June 23, 2016 through August 6, 2016. Proceeds of the debenture are being used to fund working capital, accounts receivables, and ongoing market development expenses related to the launch in the US of ZeroMold Plus™. The funds have also been used to repay $350,000 of principal of the $550,000 owed to Bassett Financial Corporation.

Med BioGene Inc. (TSX VENTURE:MBI) announced a proposed financing. Erinn Broshko, MBI’s Executive Chairman commented: “To address the company’s limited cash position, management of MBI has arranged for a $200,000 private placement. As required by the key subscribers to the private placement, the financing is subject to the re-election of a majority of board members of MBI (including the re-election of the current Executive Chairman) for continuity in the leadership of the company. MBI believes that the first milestone payment of $500,000 relating to Precision’s commercialization obligations of GeneFx Lung is owing by Precision and management intends to use the proceeds from the financing to enforce its rights under the agreement including, if necessary, initiating binding arbitration proceedings. MBI encourages shareholders to vote in person or by proxy at the upcoming meeting and to consider seriously the consequences of their vote. The board of directors of MBI strongly recommends the re-election of the current directors.”

iBio, Inc. (NYSE MKT: IBIO), and Kanematsu Chemicals Corporation, part of Kanematsu Corporation (TSE: 8020), have entered into a collaboration agreement under which Kanematsu Chemicals Corporation will market the novel iBioLaunch™ platform in Japan. The collaboration combines iBio’s plant-based expression system and expertise for rapid, reliable and economical development and production of biological vaccines and therapeutics, with the marketing reach and regional expertise of the life science group from Kanematsu Chemicals Corporation.

Miraculins Inc. (TSX VENTURE:MOM) (“Miraculins” or the “Company”) announced that it has executed a definitive agreement (the “Agreement”) for the sale and distribution of Scout DS® diabetes screening devices into China with Catalyn Medical Technologies Limited (“Catalyn”). Cachet Pharmaceutical Co., Ltd. (“Cachet”) has been co-appointed as the exclusive distributor of the Scout DS® devices in Mainland China by Miraculins and Catalyn.

Horizon Pharma, Inc. (NASDAQ: HZNP) announced that POZEN Inc. (NASDAQ: POZN), has received a Notice of Allowance from the United States Patent and Trademark Office (USPTO) for U.S. patent application number 14/045,156 entitled “Pharmaceutical Compositions for the Coordinated Delivery of NSAIDs” that covers Horizon and POZEN’S U.S. approved product VIMOVO® (naproxen / esomeprazole magnesium) delayed release tablets.

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