Financing
Public Canadian healthcare companies completed equity and convertible debt financings during this quarter for total gross proceeds of $236.0 million (Appendix 1). The largest financing in the sector was the only financing in the Services group, $86.3 million by Extendicare. The largest financing in the Therapeutics group was $34.5 million from a rights offering by Wex Pharmaceuticals, with 97.6% of the shares being issued to its largest shareholder. Excluding these two financings, the rest of the sector raised $115.2 million. Other financing vehicles also provided some current and future funds for companies. Merck advanced US$25 million to Cardiome under a secured, interest-bearing credit facility which is a component of their partnership for vernakalant. Allon Therapeutics and Resverlogix established Standby Equity Distribution Agreements (SEDAs) for $10 million and $25 million, respectively, but have not yet made any draw downs under these agreements. Bioniche Life Sciences received US$8 million in milestone payments under its partnership with Endo.
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