brad meikle
Cipher Pharmaceuticals Inc (TSX: CPH) has acquired Innocutis Holdings LLC, a U.S. dermatological therapy company, for US$45.5 million in cash. The Mississauga, Ontario-based Cipher said the acquisition facilitates its entry into the United States and advances its goal of creating a leading North American dermatology business. The deal was supported by US$100 million of senior secured notes provided by funds affiliated with Athyrium Capital Management, a New York specialty finance firm. Based in Charleston, South Carolina, Innocutis has been a portfolio company of U.S. venture capital firm Ballast Point Ventures since 2011.
Toronto-based computer software provider UXP Systems has received an investment from U.S. business executive John Malone and John Risley, president and CEO of Canadian holding company Clearwater Fine Foods. The investment's value was not disclosed, however, The Wall Street Journal reported it at US$8 million. UXP Systems, which was founded in 2011, said the deal will help accelerate growth of its business, which is focused on helping cable operators deliver more personalized services to customers. Malone and Risley were leading investors in Columbus International Inc, a portfolio company of Portland Private Equity that was recently sold for US$3.025 billion.
Technology companies pose a competitive threat to established lenders, the head of Royal Bank of Canada said, adding he was keen to work with startups to improve the company's mobile offerings, Reuters reported. McKay said RBC was also prepared to partner with small venture firms to develop applications for banking through mobile devices.
Frima Studio, a developer of multi-platform video games and digital entertainment, has obtained $7.5 million in financing. The investors were the Fonds de solidarité FTQ and European media business Média-Participations, which have assumed a minority interest in the company. Frima, which has its headquarters in Québec City, said the proceeds of the deal will help it to pursue development and sale of entertainment products and brands. It said the partnership with the two investors will also support acquisitions by the company in Canada and abroad. Frima was co-founded in 2003 by Steve Couture, Philippe Bégin and Christian Daigle.
Ayogo Health Inc has raised $2.5 million in a Series A financing round. The investors included U.S. venture capital firms Merck Global Health Innovation Fund (GHI), Excel Venture Management and 7Wire Ventures. Ayogo, a Vancouver-based provider of technology focused on engaging healthcare users, said proceeds of the round will help it to expand research and sales and marketing activity. With the deal's closing, GHI's David Stevenson, Excel's Caleb Winder and 7Wire's Lee Shapiro will join the company's board of directors. Ayogo was co-founded in 2011 by CEO Michael Fergusson and CTO Paul Prescod.
Canadian mobile instant messaging company Kik Interactive Inc is exploring a sale, Reuters reported, citing a Bloomberg story. The Waterloo-based company has hired Qatalyst Partners to set up talks with potential buyers or investors. Kik, which is backed by a number of venture capital investors, reports having raised $70.5 million in funding to date.
In the coming weeks, the Canadian Venture Capital & Private Equity Association (CVCA) and Thomson Reuters will issue their reports on Canadian venture capital market activity in the first quarter of 2015. In the meantime, peHUB Canada has compiled a list of the likely top 10 (disclosed) financings completed between January and March.
U.S. private markets investment firm HarbourVest Partners has opened an office in Toronto and has appointed Senia Rapisarda as a principal to lead it. Rapisarda, who previously served at BDC Capital, has recently been working with HarbourVest on a consulting basis to explore a Canadian market opportunity and help develop plans for a local presence, the firm said. Update: As reported by peHUB Canada earlier this year, HarbourVest is expected to soon launch a new fund backed by the federal government’s Venture Capital Action Plan (VCAP). Canadian specialty pharmaceutical company Knight Therapeutics Inc recently announced that it made a commitment to the fund.
Coinsetter, a New York-based bitcoin exchange that targets institutional and professional traders, said it has acquired Canadian Virtual Exchange, a bitcoin trading platform which recently shut down due to security breaches, Reuters reported. Coinsetter has recently obtained venture capital funding from Crypto Currency Partners, Cryptonaut Ventures, Tribeca Venture Partners and other investors.
AmorChem, an early-stage life sciences fund managed by Canadian venture capital firm GeneChem, has entered into an agreement with Hôpital Maisonneuve-Rosemont and Univalor to participate in the financing of research at the Personalized Cancer ImmunoTherapy Program. The program, which is sponsored by Genome Canada, focuses on the development and clinical implementation of innovative personalized anti-cancer immunotherapies. The investment is AmorChem's second in the program. Earlier in 2015, the fund partnered with the University of Waterloo on a mucoadhesive nanotechnology project.