Microbix Biosystems Inc. raised C$6.8 million (US$7.1 million) through the private placement of 6.5 million units priced at C$1.05 (US$1.09) per unit.
Each unit consisted of one common share and one-half of a five-year warrant to purchase an additional common share for C$1.26. Shares of Toronto-based Microbix (TSX:MBX) rose C9 cents to close at C$1.25 on Wednesday, up 8 percent.
Dundee Securities Corp. led the financing, which included J.F. Mackie & Company Ltd.
Proceeds will be used to expand core manufacturing operations and support Microbix's contract manufacturing service. Revenue generated through that business, as well as through the sale of various reagents, has driven development of Microbix's pipeline.
That pipeline includes ThromboClear, a generic biologic consisting of low molecular weight urokinase designed for use both in catheter clearing and in oncology indications. The cancer program is partnered with Chicago-based Angiogen LLC and will combine urokinase with a small-molecule drug.
Microbix is also developing a technology know as Virusmax, which is designed to increase the yield from certain viral vaccine production systems, and a livestock sex-determination product called Sperm Sexing Technology.
In other financing news:
• Affymetrix Inc., of Santa Clara, Calif., priced its previously announced offering of unsecured senior convertible notes due 2038. The company plans to sell $275 million worth of 3.5 percent notes and offer the underwriter, JP Morgan Securities Inc., an option to purchase $41.25 million worth of additional notes to cover any overallotments. The notes will convert into Affymetrix common stock at an initial conversion rate of 33.1991 shares per $1,000 principal amount of notes, or about $30.12 per share. Shares of Affymetrix (NASDAQ:AFFY) fell $1.27 to close at $25.50 on Wednesday.
• Anesiva Inc., of South San Francisco, filed a shelf registration statement to raise up to $50 million through the sale of common stock, preferred stock, debt securities or warrants. Proceeds of any future sales will be used for research and development, potentially including support of the FDA-approved pain drug Zingo (lidocaine hydrochloride monohydrate) or ongoing trials of the long-acting, non-opiate analgesic pain drug Adlea, and general corporate purposes, potentially including the acquisition of complementary technologies.
• Critical Outcome Technologies Inc., of London, Ontario, plans to raise between C$4 million (US$4.2 million) and C$6 million (US$6.3 million) through a private placement of common stock. Shares will be priced at C$1.40 each, a slight discount to the company's Tuesday closing price of C$1.45. Northern Securities Inc. is acting as the lead placement agent for the offering. Proceeds will be used to purchase DDP Therapeutics, as previously announced, and for product development, research and corporate purposes.