Broadfin Capital, LLC revealed that they own a 10% stake in QLT Inc. (NASDAQ:QLTI) in a Form 13D/A disclosure that was filed with the SEC on Thursday, September 22nd. The investor owns 5,269,831 shares of the stock valued at about $10,118,076. The reporting parties listed on the disclosure included Broadfin Capital, LLC, Broadfin Healthcare Master Fund, Ltd and Kevin Kotler. The filing is available through EDGAR at this hyperlink.
Broadfin Capital, LLC provided the following explanation of their ownership:
On June 14, 2016, the Issuer, Aegerion Pharmaceuticals, Inc., a Delaware corporation (“AEGR”) and Isotope Acquisition Corp., a Delaware corporation and a whollyowned indirect subsidiary of the Issuer (“MergerCo”), entered into an Agreement and Plan of Merger (the “Merger Agreement”), which provides, among other things, that MergerCo will be merged with and into AEGR (the “Merger”), with AEGR surviving the Merger as a whollyowned indirect subsidiary of the Issuer. It is anticipated that the name of the Issuer will be changed to “Novelion Therapeutics Inc” (“Novelion”). Under the terms of the Merger Agreement, upon the consummation of the Merger, the board of directors of Novelion will include one person designated by the Reporting Persons.
Along with the execution of the Merger Agreement, certain of the Reporting Persons and the Issuer entered into a Voting Agreement (the “Voting Agreement”), pursuant to which, among other things, such Reporting Persons agreed not to dispose of their Shares while the Merger is pending and to vote their Shares in favor of the Merger at the applicable meeting of the Issuers shareholders. The Voting Agreement and the obligations of the Reporting Persons thereunder will terminate upon the earlier to occur of (a) the termination of the Merger Agreement pursuant to its terms, (b) the date of any material amendments, modifications, changes or waivers to any provision of the Merger Agreement, (c) the date on which either the Issuers board of directors or AEGRs board of directors changes its recommendation of the Merger to its shareholders in accordance with the terms of the Merger Agreement, and (d) the date on which the Merger is consummated.
Additionally, subject to the satisfaction or waiver of the conditions to closing the Merger, the Reporting Persons have agreed to participate in a private placement of the Issuers Shares immediately prior to the Merger closing.
Pursuant to the Form S4 filed by the Issuer on September 9, 2016, upon the consummation of the Merger, Kevin Kotler will become a director of Novelion.
A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in QLTI. Stonepine Capital Management LLC purchased a new position in QLT during the second quarter worth about $5,367,000. K2 Principal Fund L.P. purchased a new position in QLT during the second quarter worth about $2,306,000. BVF Inc. IL increased its position in QLT by 6.3% in the first quarter. BVF Inc. IL now owns 5,701,609 shares of the company’s stock worth $11,346,000 after buying an additional 337,224 shares in the last quarter. Yakira Capital Management Inc. increased its position in QLT by 100.1% in the first quarter. Yakira Capital Management Inc. now owns 211,114 shares of the company’s stock worth $420,000 after buying an additional 105,628 shares in the last quarter. Finally, DRW Securities LLC purchased a new position in QLT during the second quarter worth about $115,000. Hedge funds and other institutional investors own 62.04% of the company’s stock.
Shares of QLT Inc. (NASDAQ:QLTI) traded up 9.09% on Thursday, hitting $1.92. The company’s stock had a trading volume of 313,770 shares. QLT Inc. has a 1-year low of $1.22 and a 1-year high of $3.45. The firm’s market cap is $101.43 million. The company has a 50 day moving average of $1.47 and a 200 day moving average of $1.58.
Several research analysts have weighed in on the company. Zacks Investment Research upgraded QLT from a “sell” rating to a “hold” rating in a research note on Monday. Royal Bank Of Canada reiterated a “sector perform” rating on shares of QLT in a research note on Friday, June 17th.
In other QLT news, major shareholder Stonepine Capital, L.P. purchased 133,496 shares of the business’s stock in a transaction that occurred on Thursday, September 15th. The shares were acquired at an average price of $1.55 per share, for a total transaction of $206,918.80. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. 2.40% of the stock is owned by corporate insiders.
QLT Inc is a biotechnology company. The Company is focused on the development and commercialization of ocular products. The Company’s operations consist of clinical development programs focused on its synthetic retinoid, QLT091001, for the treatment of certain age-related and inherited retinal diseases (IRD) caused by retinal pigment epithelium protein 65 (RPE65) and lecithin: retinol acyltransferase (LRAT) gene mutations.
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