Briefcase – August 2017

CLOSING

Yet another Linden Street co-working space has shuttered its doors in Fort Collins. Venture capital firm FVC Americas, which took over the Galvanize space in January, is closing its co-working space Mesh, Mesh will be open until Sept. 30 and a new operator is expected to come in on Oct. 1. Galvanize at 242 Linden St. was open for 16 months before Mesh took over the lease. FVC Americas, a subsidiary of a Japanese company, opened Mesh earlier this year. Mesh is the third co-working space to close on Linden Street since Galvanize opened its doors in 2015. Next door, Inkpad closed two weeks after Galvanize did after operating for just over a year. Another co-working space on the block, artist-focused Downtown Artery, is still open.

Neighbors ER and Next Door Urgent Care in Greeley closed Aug. 4, less than a year after it opened. The emergency room near Westlake at 2015 35th St. closed because the Texas-based company is struggling to get reimbursed from insurance companies. Approximately 30 employee were affected by the closure. The center cost a little more than $3.6 million to build.

Children’s clothing seller Gymboree Corp. is closing 350 stores as it works to restructure in bankruptcy. Seven of the locations are in Colorado, including at FlatIron Crossing in Broomfield, Foothills in Fort Collins and the Promenade Shops at Centerra in Loveland. The San Francisco-based company said it will have more than 900 locations after the stores are shut down.

CONTRACTS

AntriaBio Inc. (OTC: ANTB) is licensing ActiveSite Pharmaceuticals’ oral plasma kallikrein inhibitor portfolio, which will be used in human and animal health. The portfolio will be used for targeting treatment of diabetic macular edema and other plasma kallikrein-mediated diseases. Diabetic macular edema is the primary cause of vision loss in working-age adults globally. Under the agreement, Louisville-based AntriaBio will have worldwide rights to the portfolio and  take over global development and commercial responsibilities. Berkeley, Calif.-based ActiveSite will receive an upfront payment and will be eligible for future payments, including royalties.

Boulder-based fertility startup Kindara Inc. is partnering with personal genetics company Helix to help women who are pregnant or trying to become pregnant have healthier pregnancies by accessing their DNA information. Kindara is using Helix’s technology to develop an at-home DNA test that will sync with Kindara’s fertility app and provide insights into their nutrition, wellness and fitness based on their genetic information.

Boulder-based engineering firm Black Swift Technologies was selected by the National Oceanic and Atmospheric Administration to use its small unmanned aircraft system to collect wildfire measurements. The project, called NightFOX, will support NOAA’s FIREX field mission and fire weather forecasting initiative. The sUAS will be operated by the University of Colorado’s Integrated Remote & In Situ Sensing program in collaboration with NOAA.

Boulder-based Clovis Oncology Inc. (Nasdaq: CLVS) entered into a clinical agreement with Bristol-Myers Squibb (NYSE: BMY) to test the combination of Clovis’ Rubraca drug with BMS’ immunotherapy Opdivo across multiple tumor types. The Phase 3 studies will be conducted in advanced ovarian cancer and advanced triple-negative breast cancer. The partnership also will include a Phase 2 clinical trial in metastatic prostate cancer. Clovis will run the ovarian cancer tests while Bristol-Myers operates the prostate and breast-cancer studies.

The Federal Aviation Administration selected Ottawa-based Searidge Technologies to install, test and certify a remote air-traffic control system at Northern Colorado Regional Airport in Loveland. This is the first step toward implementing a test site for next generation air-traffic control technology designed to improve efficiency and safety.

Phoenix-based Banner Health is partnering with Englewood-based Radiology Imaging Associates, which will provide physicians to read and interpret medical images for patients at Banner’s hospitals and clinics in Northern Colorado. Ten physicians, employed by Radiology Imaging Associates, began work at North Colorado Medical Center in Greeley and Banner Medical Group clinics. In December, the group will expand services to include McKee Medical Center in Loveland and Banner Fort Collins Medical Center in Fort Collins. The physicians also will provide minimally invasive procedures including arterial stent placement, varicocele embolization and prostate artery embolization.

Boulder-based biopharmaceutical company Array BioPharma Inc. (Nasdaq: ARRY) is partnering with therapeutics and genetics company Amgen with an agreement to collaborate on drugs for autoimmune disorders. The collaboration will use Array’s proprietary platform and expertise in chemistry and early lead development. Under terms of the agreement, Thousand Oaks, Calif.-based Amgen and Array will collaborate on preclinical development. Array will lead the medicinal chemistry work. Amgen is responsible for the clinical development and commercialization. Amgen will make upfront and milestone payments in exchange for exclusive rights to Array’s preclinical program and will pay royalties on sales of resulting therapies.

Boulder-based Scintec Corp. won a $132,318 federal contract set aside for small business from the U.S. Army for flat-array sodars.

Louisville-based Borogie Manufacturing Inc. won a $60,269.04 contract from the federal Defense Logistics Agency for actuator stator assemblies.

EARNINGS

Westminster-based Arca Biopharma Inc., which researches genetic therapies for cardiovascular disease, posted a net loss per share of 59 cents in the second quarter of 2017, an increase from its loss of 43 cents per share during the same period last year. The pharmaceutical company lost about $1.6 million more in Q2 2017 than it did in 2016, going from a loss of $3.9 million to $5.5 million. Operating expenses also grew, from $3.9 million in Q2 2016 to $5.6 million for the same period this year. No revenue for the company was reported.

Boulder-based Clovis Oncology Inc. announced a loss per share of $3.88 for the second quarter of 2017, an increase in loss of 51 cents per share from the same period last year. The company posted a net loss of more than $175 million, up from a loss of $129 million for the same period a year ago. Its net product revenue was $14.6 million, a significant milestone for the company that had no sales the year prior. Its drug Rubraca, which was approved and launched in December, was the reason for the sales in 2017.

Broomfield-based Level 3 Communications Inc. posted earnings per share of 42 cents for the second quarter of 2017, down slightly from 44 cents for the same period last year. The telecommunications company, which is in the middle of a merger with CenturyLink, had net income of $154 million, down slightly from $156 million for the second quarter of 2016. Revenue grew slightly from $2.056 billion in the second quarter of 2016 to $2.061 billion in the second quarter of 2017. The company’s adjusted earnings before interest, taxes, depreciation and amortization was $744 million, including the $22 million costs associated with merging.

Longmont-based UQM Technologies Inc. (NYSE: UQM), a developer of alternative energy technologies, reported a gain in revenue and less loss during the second quarter that ended June 30. UQM reported revenue of $1.8 million for the quarter, up from $1.4 million for the same quarter a year ago. Loss for the quarter was $1.3 million, or 3 cents per share, compared with a loss of $2 million and 4 cents per share for the same period a year ago.

KUDOS

Weld County was named the Taxpayer Friendliest Community by the American City County Exchange, a collaborative forum based in Arlington, Va., for elected officials across the country.

Several Colorado companies were named finalists in the Rocky Mountain Oil & Gas Awards 2017. Of the 48 finalists for the fifth annual awards, 13 of the companies are based in Colorado, including Frederick-based PCS Ferguson and Boulder-based DMC Global Inc. The awards are given to companies that are excellent in environmental stewardship, health and safety, corporate social responsibility, operational excellence and innovation. The awards gala dinner will be held Aug. 24 in Denver during The Energy Summit.

Denver-based Gordon Sign, which has designed, manufactured and installed custom signs since 1904, was chosen to represent Colorado at ‘Made in America’ Week, where the White

House celebrates domestic labor and goods by showcasing a product from each state.

MERGERS AND ACQUISITIONS

Greenwood Village-based homebuilder Century Communities Inc. (NYSE: CCS) completed its merger with UCP Inc. (NYSE: UCP). The transaction value was approximately $356 million, including payment of approximately $149 million of existing UCP debt. Century has single-family home projects planned in Northern Colorado, including 262 homes in Dacono, 95 in Loveland, 75 in Windsor and 70 in Erie.

Houston-based Service Corporation International acquired Allnutt Funeral Service, a family-owned business that has served clients in Northern Colorado since 1886. Financial terms were not disclosed about the deal that will add Allnutt to SCI’s Dignity Memorial brand. Allnutt provides funeral, cremation, pre-planning and cemetery services through mortuaries that operate under various names in Fort Collins, Longmont, Greeley, Estes Park, Grand Junction, Meeker, Craig and western Nebraska.

Two insurance-benefits companies that operated under the VolkBell brand in Northern Colorado were acquired in whole or in part by separate companies. Financial terms of the deals were not disclosed. Salt Lake City-based GBS Benefits Inc., a full-service employee-benefits firm and a member of the Leavitt Group, took a 65 percent equity stake in Volk & Associates, an insurance and human resources consulting firm based in Longmont, and AssuredPartners Inc. in Lake Mary, Fla., acquired Front Range Insurance Group LLC in Fort Collins.

When the merger of crop-nutrient producers Agrium Inc. (NYSE: AGU) and Potash Corp. of Saskatchewan Inc. (NYSE: POT) closes, the new company will be named Nutrien. Agrium, based in Calgary, Alberta, has operations worldwide, including Loveland, Greeley and Denver. The regulatory review and approval process for the merger transaction continues, and the parties expect closure of the transaction to take place in the third quarter.

Shareholders of Boulder-based Nivalis Therapeutics Inc. (Nasdaq: NVLS) on July 19 approved its merger with Alpine Immune Sciences Inc. and issuance of Nivalis’ common stock to Alpine shareholders. Nivalis shareholders will own about 26 percent of the combined company and Seattle-based Alpine shareholders will own 74 percent. Nivalis shareholders also approved a reverse stock split of Nivalis’ common stock, which will offer one new share for every four shares outstanding. They also approved  a name change of the new company to Alpine Immune Sciences Inc. Consolidated shares of the two companies began trading July 25 on Nasdaq under the ticker ALPN. Nivalis focuses on treatments for patients with cystic fibrosis.

Herndon, Va.-based REAN Cloud is acquiring 47Lining, a big-data company based in Niwot.

REAN Cloud is a managed-services provider and an Amazon Web Services premier partner. The goal of acquiring 47Lining is to have a stronger suite of big-data analytics, Internet of Things and machine learning. The acquisition will expand REAN Cloud to Colorado’s tech hub and the West Coast. 47Lining will operate as a division of REAN Cloud, but remain its own business unit in Niwot with its team intact. 47Lining’s former chief executive, Mick Bass, will lead the business unit. The two companies are not disclosing financial terms for the deal.

Church & Dwight Co. Inc., the Ewing, N.J.-based parent company of Arm & Hammer, is acquiring Fort Collins-based Water Pik Inc. for $1 billion in cash. The company, which manufactures WaterPik brand showerheads and water flossers, will keep its Fort Collins facility. The deal is expected to close in early September. Water Pik ‘s net sales for the 12 months ending June 30 was about $265 million, making it both the No. 1 water flosser brand and the No. 1 replacement showerhead brand in the United States.

Boulder-based Active Interest Media acquired the United States Team Roping Championships and TRIAD Classification Agency – the organization that has maintained and monitored the handicapping system for the team-roping industry for the past 27 years. Financial terms of the transactions were not disclosed. Based in Stephenville, Texas, the USTRC has more than 30,000 members worldwide. TRIAD uses proprietary software and a data-management system that collects and tabulates performance data in real time.

MOVES

Case Logic Inc., a designer of carrying and storage cases for a variety of tech products, will move its operations from the Boulder Tech Center in Niwot to the Campus at Longmont this fall. Case Logic, a subsidiary of The Thule Group, leased 19,096 square feet of space in a 39,000-square-foot building at 2420 Trade Center Ave. in southwest Longmont. Case Logic is moving from 156,000 square feet at 6303 Drycreek Parkway in the Boulder Tech Center.

Peak Serum, a supplier of fetal bovine serum to bioscience researchers, moved its operations from Fort Collins to a larger location in Wellington. Peak Serum has moved to a 3,000-square-foot building at 6598 Buttercup Drive in the Wellington Business Center.

Law firm Lathrop & Gage leased office space in the new Boulder Commons development and plans to move into the net-zero energy building Sept. 30. Boulder Commons is a 100,000-square-foot mixed-use development located at 2440 and 2490 Junction Place, just north of the transit center at Boulder Junction. It was developed by Morgan Creek Ventures in Boulder and San Francisco-based New Island Capital. Lathrop & Gage is taking 9,300 square feet of space at 2440 Junction Place to house its 13 lawyers and 21-member support staff. It is moving from 4845 Pearl East Circle in Boulder.

Fort Collins-based Bank of Colorado is closing its branch at 636 Coffman St. in downtown Longmont and has opened a branch farther south at 916 S. Main St. that formerly housed an AmFirst Bank branch. The shift in location was spurred by Bank of Colorado’s acquisition of AmFirst that was announced in March and closed earlier this summer.

Regenexx, a Broomfield-based company that uses stem cells to alleviate chronic joint pain, moved its headquarters to Des Moines, Iowa, after merging with Harbor View Medical in that city. Financial terms of the deal, finalized in May, were not disclosed. Jason Hellickson will be chief executive of the new company that will go by the name Regenexx, the trade name for Regeneratives Sciences LLC.

OPENING

Boulder-based Fate Brewing Co., will open a restaurant, tasting room and brewery in the Colorado Technology Center in Louisville. Fate, which will keep its flagship restaurant and brewery at 1600 38th St. in Boulder, leased 14,858 square feet at 1772 Prairie Way in the center.

Comcast opened a new customer-service center in Fort Collins that will seat 600 customer-service agents. The 80,000-square-foot center at 3420 E. Harmony Road will support residential customers across the country, including those in Northern Colorado.

Automox, a startup that provides patch security, launched with Jay Prassi, one of the founders of SolidFire, as chief executive and $1.3 million of financing in the bank. Automox offers a fully automated platform capable of patching — updating a computer program or data to fix or improve it — any operating system or software in any location. Boulder-based SolidFire, a flash-storage and software-development company, was acquired by NetApp in 2015 for $870 million.

Boulder AI, a new tech startup, is looking to blend software and hardware expertise for the artificial-intelligence industry. It is founded by Darren Odom, who has 10 years of experience in consulting on AI technology.

PRODUCT UPDATE

Former barkeep Quinton Bennett launched Wheelhouse Canning Co. and will produce its first 600-case run of canned cocktails out of Mobile Canning in Longmont. It also plans to roll out a canned whiskey cocktail in coming months. Wheelhouse’s first release will include three flavors: a mint/cucumber vodka, a grape/mint gin and a black tea/lemonade vodka.

SERVICES

BizWest announced several changes and new features for its website, bizwest.com. A new subscription system means that content originally produced for the monthly print edition will be categorized as “premium,” meaning that it will be available only to digital or print subscribers. Some content, including most daily-news items, will be free for 48 hours. BizWest also launched a video series, in partnership with Fort Collins-based V3 Media. The Leadership Series will be under the umbrella of BizWest TV.

Four Paws Pet Hotel & Resort in Fort Collins added an indoor pool for dogs that will be used for group swims, individual swimming lessons and rehabilitation therapy. The pool features an extendable dock for dock-diving practice and a zero-depth entry ramp so dogs can enter and exit the water easily. The pool was constructed by AMI Construction at a cost of $300,000. Four Paws will host a humans-only grand-opening celebration from 1 to 4 p.m. Saturday, Aug. 12, at 4710 S. College Ave. Complimentary food will be catered by Elli’s Deli and Koby’s East Coast Snowball Stand. There will be giveaways and tours.

Comcast is launching residential Internet service with speeds up to 1 gigabit per second throughout Colorado. The announcement comes after the company launched a new platform Xfinity xFi, a digital dashboard for customers to set up their home Wi-Fi network.

The Regional Transportation District added four routes to and from Boulder and Denver International Airport. RTD operates the new trips as route AB2, picking up passengers in Boulder at Boulder Junction at Depot Square, 2280 Junction Place; near the University of Colorado Boulder’s east campus at the corner of 28th Street and Arapahoe Avenue and 28th Street and College Avenue; and the Table Mesa Park-N-Ride, 5170 Table Mesa Drive. There will be two runs to and from the airport in the morning originating from Boulder Junction at 7 and 8 a.m., and two in the afternoon leaving at 6 and 7:05 p.m. The existing AB route that goes to and from Boulder and the airport will continue its service, but it is being renamed AB1.

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