March 30, 2015

Monday Deal Review - March 30, 2015


Welcome to your Monday Biotech Deal Review for March 30th, 2015!


The past week saw Valeant close their offering of 7,286,432 shares, raising proceeds of about $1.45 billion.

For details on this financing, as well as for the rest of the week’s stories, continue reading this week’s Monday Deal Review!


Valeant Pharmaceuticals International, Inc (NYSE: VRX)(TSX: VRX) announced the closing of its previously announced registered offering of common shares in the United States (the “Offering”). Pursuant to the Offering, the Company issued 7,286,432 common shares at a price of $199.00 per share, for aggregate gross proceeds of approximately $1.45 billion. On March 18, 2015, the Company filed with the U.S. Securities and Exchange Commission a final prospectus supplement to its effective shelf registration statement on Form S-3 in connection with the Offering.

Spectral Medical Inc. (“Spectral” or the “Company”) (TSX:EDT)(OTCQX:EDTXF), a Phase III company developing the first treatment for patients with septic shock guided by a companion diagnostic, announced that, in connection with the previously announced offering to Toray Industries, Inc. (“Toray”) of 9,041,592 common shares (“Shares”) at a price of CDN$0.553 per Share (the “Subscription Price”) pursuant to the exercise of the Company’s call right (the “Call Right”), Birch Hill Equity Partners IV, LP, Birch Hill Equity Partners (US) IV, LP, and Birch Hill Equity Partners (Entrepreneurs) IV, LP (collectively, the “Birch Hill LPs”) have exercised their anti-dilution rights to acquire 2,007,872 Shares at the Subscription Price, for net proceeds of CDN$1,110,353. As a result, the Company will issue an aggregate of 11,049,464 Shares under the offering for net proceeds of CDN$6,110,353 (the “Offering”).

Medifocus Inc. (OTCQX: MDFZF) (TSX VENTURE: MFS) announces, subject to regulatory approval, a non-brokered private placement of up to 40,454,546 common shares (the Common Shares) at a price of $0.055 per Common Share for gross proceeds of up to $2,225,000 (the Offering). The net proceeds of the Offering will be used for general working capital. Medifocus anticipated that the Offering will be completed on or around April 2, 2015. Medifocus may pay finder’s fees equal to 9% of the gross proceeds raised.

MedMira Inc., (MedMira) (TSX-V: MIR) is entering into a new CAD $1.1 million equity investment with OnSite Lab Holding AG (OnSite Lab) to support the Company’s growth plans in the United States.  These funds will contribute to advancing the Company’s progressive sales and marketing drive, including upcoming product launches for its three products under review by the United States Food and Drug Administration, as well as bolstering the Company’s physical presence in the United States to support growing sales opportunities. Under the terms of the deal, OnSite Lab will acquire 22,000,000 equity units at $0.05 per unit.  Each equity unit consists of one common share and one common share purchase warrant and is subject to a four month hold period which expires on July 28, 2015.  Each full warrant entitles the investor to purchase one common share of MedMira at $0.10 per share exercisable over four years.  OnSite Lab is the Company’s controlling shareholder and has previously made investments in the Company totalling CAD $17.6 million.


Levon Resources Ltd. (“Levon”) (TSX: LVN) (FRANKFURT: LO9) (OTCQX: LVNVF) and SciVac Ltd. (“SciVac”) announced that they have entered into an arrangement pursuant to which Levon will acquire 100% of the issued and outstanding ordinary shares of SciVac by way of a court-approved plan of arrangement (the “Arrangement”).



Cipher Pharmaceuticals Inc. (NASDAQ:CPHR; TSX:CPH) (“Cipher” or “the Company”) announced it has licensed the Canadian distribution rights to CF101, a novel chemical entity being developed by Can-Fite Biopharma (“Can-Fite”) (NYSE MKT: CANF) (TASE: CFBI) for moderate to severe plaque psoriasis and rheumatoid arthritis. Under the terms of the agreement, Can-Fite will receive an upfront payment of CDN$1.65 million and is eligible for milestone payments of up to CDN$2,000,000 and royalties from product sales in Canada. The agreement provides that Can-Fite will deliver finished product to Cipher.


Medicure Inc. (the “Company”) (TSX-V: MPH)(OTCQB: MCUJF) announces that the Company has issued 108,206 of its common shares at a deemed price of $1.44 per common share extinguishing $155,816.64 of amounts owing to certain members of the Board of Directors and a consultant under shares for debt agreements originally entered into and announced on January 27, 2015.  These shares will be subject to resale restrictions for a period of four months from the date of issuance under applicable securities legislation.

Pivotal Therapeutics Inc. (CSE: PVO) (OTCQX:PVTTF), (“Pivotal” or the “Company”), a specialty pharmaceutical company with a focus on Omega-3 therapies for cardiovascular disease and overall health, announced that on March 25, 2015 it issued 763,752 common shares of the Corporation (the “Common Shares”). The Common Shares represented payment of interest for the period of December 5th, 2014 to March 4th, 2015 on its outstanding Convertible Notes that is due on or before April 1, 2015. Interest on the Notes, at the rate of 8% per annum, is payable quarterly in either cash or Common Shares, at the option of the Company.  Common Shares issued in payment of interest are valued at the greater of CDN $0.20 per share and such price as may be allowed under the CSE Policy. The issued and outstanding number of shares now total 94,232,988.

Kane Biotech Inc. (TSX-V: KNE) (the “Corporation”) announced that on March 23, 2015, it issued 248,605 common shares of the Corporation (“Common Shares”) in payment of $12,430.27 in interest owing on the Corporation’s $500,000 2 year 10% convertible redeemable unsecured note (the “Note”) as at March 18, 2015. Pursuant to the terms of the Note, the Corporation has the option to issue Common Shares in lieu of cash in payment of interest on the Note at a deemed price per share equal to the market price of the Common Shares on the applicable interest payment date, subject to a minimum price of $.05 per share and the approval of the TSX Venture Exchange (the “Exchange”). The approval of the Exchange for the issuance of the Common Shares was obtained by the Corporation on March 23, 2015. The Common Shares issued by the Corporation are restricted from transfer for a period of four months from the date of issuance in accordance with applicable securities laws and TSX Venture Exchange policies.

Microbix Biosystems Inc. (TSX:MBX) (“Microbix” or the “Company”), an innovator of biological products and technologies, announced that the Court of Dusseldorf, Germany has dismissed its VIRUSMAX® patent infringement lawsuit against Novartis Vaccines and Diagnostics (“Novartis”) without prejudice. Microbix successfully obtained VIRUSMAX patents in 21 countries between 2006 and 2011 claiming methods for the improvement of virus yields in the manufacture of influenza and related vaccines. In 2010 Novartis filed an Opposition at the European Patent Office (EPO) in Munich against Microbix’ European Patent 1 636 352 B1. The EPO rejected the Opposition at its Hearing in January 2014. The EPO has not yet addressed Novartis’ appeal of its decision.

Hospira, Inc. (NYSE: HSP), a global leader in biosimilars and the world’s leading provider of injectable drugs and infusion technologies, announces the availability of INFLECTRA™ (infliximab) in Canada, the country’s first subsequent entry biologic (SEB) monoclonal antibody (mAb) therapy. Approved by Health Canada, INFLECTRA is available to healthcare practitioners for the treatment of patients with rheumatoid arthritis (RA), ankylosing spondylitis (AS), psoriatic arthritis (PsA) and plaque psoriasis.

Aequus Pharmaceuticals Inc.  (“Aequus” or the “Company”) (TSX VENTURE:AQS) announced that the Company’s common shares have been listed for trading on the TSX Venture Exchange (“TSX-V”) under the trading symbol “AQS”.

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