Maple Leaf wraps C$70 million; Commonwealth sells stock; OncoMethylome plans deal

By Kenneth Lim

Boston, Dec. 16 - Maple Leaf Foods Inc. completed a C$70 million capital raise through a sale of stock and warrant units that the company expects will give it financial flexibility.

Commonwealth Bank of Australia raised A$2 billion through a stock placement as part of an accelerated capital raising plan.

OncoMethylome Sciences SA plans to sell €8.4 million of its common stock to expand the development of its biomarker program for pharmaceutical applications.

BioSante Pharmaceuticals, Inc. arranged for a $25 million equity financing facility with Kingsbridge Capital Ltd., which recently also offered a similar facility with Discovery Laboratories, Inc.

Maple Leaf settles placement

Maple Leaf Foods settled a previously announced C$70 million private placement of units.

The company sold about 7.37 million units of one subscription receipt and 0.4 of a warrant at C$9.50 per unit.

Each subscription receipt will entitle the holder to receive one common share on Aug. 4 or, at the election of the company, the return of all the unit proceeds in cash at a value of C$9.50 per unit.

Each warrant will be exercisable at C$9.50 until Dec. 16, 2010.

Maple Leaf Foods common stock (TSX: MFI) closed at C$11 on Tuesday, down by 1.7% or C$0.19. The company has a market capitalization of C$1.63 billion.

Proceeds will be used for general corporate purposes.

Maple Leaf Foods is a Toronto-based food processing company.

The Ontario Teachers Pension Plan Board and McCain Capital Group led the investors in the placement.

"This financing provides Maple Leaf Foods with the flexibility to support our strategic initiatives and rebuild our business through these difficult credit markets," Maple Leaf Foods chief financial officer Michael Vels said in a statement.

"At the same time, the structure provides the company with the flexibility of minimizing dilution to existing shareholders. The transaction reflects the strong support of our major shareholders and other new investors, who are confident in our ability to build shareholder value."

Commonwealth Bank raises A$2 billion

Commonwealth Bank of Australia completed a A$2 billion private stock placement.

The company sold ordinary shares at A$27 per share, a 5% discount to the stock's five-day volume weighted average price. Commonwealth Bank of Australia common stock (ASX: CBA) closed unchanged at A$29.15 on Tuesday.

Proceeds will be used to redeem the bank's PERLS II securities, strengthen its balance sheet and allow the bank to take advantage of organic growth opportunities arising in the current market.

The bank is based in Sydney, Australia.

OncoMethylome to sell stock

OncoMethylome Sciences plans to raise €8.4 million from a private stock placement.

The company will sell about 1.33 million shares at €6.29 apiece. OncoMethylome common stock (Euronext: ONCOB) closed unchanged at €6.05 on Tuesday. The company has a market capitalization of €71.4 million.

AGF Private Equity, APG Investments and Fortis Investments Management were the investors. Following the placement, AGF will hold a 6% stake in OncoMethylome, while APG will have a 2.4% stake and Fortis will own 1.7%.

Proceeds will be used to expand OncoMethylome's biomarker development for pharmaceutical applications, such as companion diagnostic tests used in personalized treatment of cancer patients.

Based in Liege, Belgium, OncoMethylome Sciences is a molecular diagnostics company

"OncoMethylome welcomes the addition of solid institutional investors such as AGF Private Equity, APG Investments, and Fortis Investments Management as additional cornerstone shareholders," OncoMethylome chief executive Herman Spolders said in a press release.

"The strong cash position will allow us to accelerate certain products in development and to remain focused on the needs and demand of oncologists and cancer patients. Most importantly, these additional funds will allow us to expand and accelerate our work with pharmaceutical companies to identify biomarkers for eventual oncology companion diagnostic products."

AGF life sciences partner Rémi Droller added: "With revenues projected to grow steadily in the coming years, a strong cash and balance sheet position, and its leading-edge patented technology, we believe the company is positioned to lead in this growing industry over the coming years."

BioSante takes $25 million facility

BioSante negotiated a $25 million two-year committed equity financing facility with Kingsbridge Capital.

The company may sell up to 5.7 million shares to Kingsbridge at discounts ranging from 8% to 14%. There are no minimum commitments.

Kingsbridge also received a warrant for 300,000 shares, exercisable at $4.

BioSante common stock (Nasdaq: BPAX) slipped 5.48% or $0.08 to close at $1.38 on Tuesday. The company's market capitalization is $37.86 million.

Based in Lincolnshire, Ill., BioSante is a biotechnology company focused on hormone therapies.

"The new CEFF with Kingsbridge provides us with added financial flexibility and strength as we continue to move forward with our LibiGel clinical development program, which is currently in phase 3 under an SPA for the treatment of female sexual dysfunction, specifically hypoactive sexual desire disorder in menopausal women," BioSante president and chief executive Stephen M. Simes said in a statement.

"Our ability to choose if, and when, to access funds under this facility, provides us with the flexibility to operate in this challenging economic and market environment while minimizing the dilution for our stockholders."

Kingsbridge recently also entered into a two-year $25 million equity financing facility agreement with Discovery Laboratories, a Warrington, Pa.-based biotech.

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