Cangene Corporation Completes $81M Bought Deal

On December 14, 2006, Cangene Corporation, one of Canada's largest biopharmaceutical companies, completed an offering of 10,000,000 common shares, consisting of 4,375,000 common shares issued from treasury and 5,625,000 common shares sold by Sherman Foundation, a charitable foundation related to the Apotex Group. The common shares were sold on a bought deal basis to a syndicate of underwriters led by GMP Securities L.P. and including TD Securities Inc., Scotia Capital Inc. and Sprott Securities Inc. at a price of $8.10 per share. The offering was made pursuant to a short-form prospectus of Cangene Corporation in Canada and pursuant to a private placement in the US. The net proceeds of the offering were used to repay indebtedness and for general corporate purposes, including working capital.

Cangene Corporation and Sherman Foundation were represented by Goodmans LLP, with a team that included Justin Beber, Pat Robinson, Pollyanna Lord and Kirk Rauliuk, as well as Goodmans Vancouver's Jonathan O'Connor; Norm Snyder of Taylor McCaffrey LLP and in the US by Joel Frank of Hartman and Craven LLP.

The underwriters were represented by Fasken Martineau DuMoulin LLP, with a team that included Rubin Rapuch, John Sabetti, Karoline Kralka and Amanda Field; and in the US by Gil Cornblum of Dorsey Whitney LLP.