Monday Deal Review: April 13, 2009

M&A, scads of securities, and a real, live IPO in the Canadian deal news this week.

M&A:

• In a follow-on to last month’s blockbuster Akela-Nventa deal, Oncolytics Biotech Inc. (TSX: ONC, NASDAQ: ONCY) closed the acquisition of a private company with accumulated tax losses that it announced at the beginning of March.  When we first noted the deal, the company was expected to have $2.3 million net cash, but this week’s announcement shows $2.1 million.  Oncolytics issued 1,875,121 common shares out of 45,730,869 outstanding.  Oncolytics also announced positive results in its U.K. Phase II clinical trial this week.
• More JLL-Patheon developments pending, as the OSC reportedly considers an application from JLL requesting a discretionary exemption from requirements relating to identical consideration.

Commercial Deals:

• GenoLogics (based in Victoria, BC) and Applied Biosystems have a deal to integrate GenoLogics’ lab and data management solution with the next-generation ABI genomic analysis system to provide sample and workflow management. 
•  LMS Medical Systems Inc. (TSX: LMZ) sold its software for electronic obstetrical records to an affiliate of McKesson Corporation, and entered into a services agreement that will generate fees through 2010 for proceeds plus service revenue of up to US$3 million.  LMS can continue to use, develop and distribute the software outside of the McKesson Clinical customer base.  LMS Medical’s listing is undergoing a review by the TSX that has been extended by 30 days as of March 12.

Securities:

• Biotanika Health Group Inc., a natural health products company, has filed a preliminary prospectus (and a lot of material contracts!) to raise $4.5M for an IPO, with the shares to trade on the TSX Venture Exchange.
• Welichem Biotech Inc. (TSX-V: WBI) held a special meeting last week at which the shareholders approved a 10-for-1 share consolidation.
• Nuvo Research Inc. (TSX: NRI) announced that 42 percent of eligible warrants were exercised pursuant to its warrant incentive program, generating gross proceeds of $3.8 million.
• CRH Medical Corporation (TSX-V: CRM) completed its private placement with Canaccord with 2,728,719 units at $0.78 per unit (over the base of 2,564,103 but not using the full overallotment), for aggregate gross proceeds of approximately $2.128 million.  Cannacord got a cash commission of 7% of the gross proceeds, paid as $35,334.26 in cash and 145,710 units; plus 136,435 2-year warrants each for one unit at $0.78.  The Company also completed a concurrent non-brokered private placement of 220,000 units for aggregate gross proceeds of $171,600.
• Aptilon Corporation (TSX-V: APZ) announced that its directors adopted a resolution to reduce the exercise price of its 12,818,100 issued and outstanding options. The reduced exercise price will be $0.105 per share, the closing price of the Class A Shares of the Corporation on April 2, 2009 (an $0.005 per share in the black today).  The reduction of the exercise price is subject to the approval of the TSX Venture Exchange, plus, in the case of the 10,655,600 options held by insiders, to the approval of disinterested shareholders (to be sought at the annual meeting in June).

Debt:

• PreMD Inc. (TSX: PMD; PREMF.pk) has secured the debt financing it was looking for in order to “move forward towards an eventual FDA outcome and pursue its previously announced lawsuit.”  The company has voluntarily delisted from the TSX as it cannot file its annual statements and will no longer meet the TSX’s minimum listing requirements.

Clinical Trials:

• Announcements from Medifocus,  Kiadis, and Orcrist, plus a new Canadian indication for PREZISTA.