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Mar 1, 2016

On March 1, 2016, Merus Labs International (Merus), completed a $27 million bought deal private placement of subscription receipts. Merus has used the proceeds to acquire four pharmaceutical products from Sanofi S.A.

The financing was unique in that it involved the issuance of a subscription receipts convertible into special warrants. The subscription receipt mechanism was used to provide assurance to investors that the offering proceeds will allow Merus to complete the acquisition. The special warrant mechanism enables Merus the ability to provide its investors with freely tradable common shares once it is in a position to file a prospectus supplement to its current shelf prospectus.

Representing Merus to complete the financing was a McMillan team, which included Michael Taylor, Barbara Collins, Peter Botz and Christine Man, and who were supported by Linda Rocca, Joni Liew and Ravi Bains.

Bernhard Zinkhofer, Leo Raffin and Cory Kent provided additional assistance on some of the unique aspects of the transaction.