424B3 1 v036404_424b3.htm
 
Filed Pursuant to Rule 424(b)(3)
Registration No. 333-120153

PROSPECTUS SUPPLEMENT
(TO PROSPECTUS DATED OCTOBER 21, 2005)

YM BIOSCIENCES INC.
12,575,218 COMMON SHARES

This prospectus supplement supplements and amends the prospectus, dated October 21, 2005, relating to the resale of up to 12,575,218 common shares of YM BioSciences Inc., which may be offered from time to time by the persons named in the prospectus under the heading "Selling Shareholders".

The table on pages 18 and 19 of the prospectus sets forth information with respect to the selling shareholders and the respective amounts of common shares beneficially owned by each selling shareholder that may be offered pursuant to the prospectus, as supplemented and amended. This prospectus supplement amends that table by deleting the following rows from the table:

XMark Fund, Ltd.
   
313,850
   
156,925
   
470,775
(5)
 
1.3
%
Xmark Funds
                         
301 Tresser Blvd, Suite 1320
                         
Stamford, CT 06901
                         
                           
XMark Fund, L.P.
   
186,150
   
93,075
   
279,225
(5)
 
*
 
Xmark Funds
                         
301 Tresser Blvd, Suite 1320
                         
Stamford, CT 06901
                         
                           
BayStar Capital II, L.P.
   
675,000
   
337,500
   
1,012,500
   
2.8
%
80 East Sir Francis Drake Blvd.
                         
Suite 2B
                         
Larkspur, CA 94939
                         
                           
SDS Capital Group SPC, Ltd.
   
984,848
   
492,424
   
1,477,272
   
4.0
%
c/o SDS Management, LLC
                         
53 Forest Avenue, 2nd Floor
                         
Old Greenwich, CT 06870
                         

 
 

 
 
In addition, such table is amended and supplemented by adding at the bottom of the table the following, which information is as of the date hereof:

 
 
 
 
 
 
TOTAL
     
 
 
 
 
 
 
SHAREHOLDINGS
     
 
 
 
 
 
 
AFTER
     
SELLING SHAREHOLDER
 
 
 
NUMBER OF
 
COMPLETION OF
 
PERCENTAGE
 
NAME AND ADDRESS
 
NUMBER OF SHARES
 
WARRANT SHARES
 
OFFERING (1)
 
OWNERSHIP (2)
 
                   
Xmark JV Investment Partners(6)
   
350,000
   
5,056,800
   
14.2
%
     
Xmark Funds
                         
301 Tresser Blvd, Suite 1320
                         
Stamford, CT 06901
                         
                           
XMark Fund, Ltd.(6)
   
313,850
   
156,925
   
5,056,800
(6)
 
14.2
%
Xmark Funds
                         
301 Tresser Blvd, Suite 1320
                         
Stamford, CT 06901
                         
                           
XMark Fund, L.P.(6)
   
186,150
   
93,075
   
5,056,800
(6)
 
14.2
%
Xmark Funds
                         
301 Tresser Blvd, Suite 1320
                         
Stamford, CT 06901
                         
                           
SDS Capital Group SPC, Ltd.
   
984.848
   
365,414
   
263,344
   
*
%
c/o SDS Management, LLC
                         
53 Forest Avenue, 2nd Floor
                         
Old Greenwich, CT 06870
                         
                           
BayStar Capital II, L.P.
   
675,000
   
114,510
   
0
   
*
%
80 East Sir Francis Drake Blvd.
                         
Suite 2B
                         
Larkspur, CA 94939
                         

Furthermore, footnote (5) to such table is hereby deleted, and footnote (6) is hereby relabeled as footnote (5).

A new footnote (6) is hereby added under such table, as follows:

“(6) Beneficial ownership is calculated as defined in Rule 13d-1 under the Securities Exchange Act of 1934, as amended.”
 
_____________________
 

The prospectus, together with this prospectus supplement, constitutes the prospectus required to be delivered by Section 5(b) of the Securities Act of 1933, as amended, with respect to offers and sales of the Shares and Warrant Shares issuable upon conversion of the Warrants.

WE URGE YOU TO CAREFULLY READ THE “RISK FACTORS” SECTION BEGINNING ON PAGE 4 OF THE ACCOMPANYING PROSPECTUS, WHERE WE DESCRIBE SPECIFIC RISKS ASSOCIATED WITH THESE SECURITIES, BEFORE YOU MAKE YOUR INVESTMENT DECISION.
 
_____________________
 

NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE ADEQUACY OR ACCURACY OF THIS PROSPECTUS SUPPLEMENT OR THE ACCOMPANYING PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

The date of this prospectus supplement is February 23, 2006.
 
 
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SELLING SHAREHOLDERS

The shares offered for sale pursuant to this prospectus consist of 6,752,801 shares (the "2003 Shares") which were issued to the Selling Shareholders upon exercise of 6,752,801 previously issued special warrants, and 3,376,401 additional shares (the "2003 Warrant Shares") issuable upon the exercise of 3,376,401 share purchase warrants (the "2003 Warrants"). Each 2003 Warrant entitles the holder to acquire one 2003 Warrant Share at any time up to December 15, 2008, at a price of $2.50 per 2003 Warrant Share. The Selling Shareholders acquired the 2003 Shares and 2003 Warrants upon exercise of 6,752,801 special warrants of the Corporation which were sold pursuant to a private placement completed in December 2003. The price of the special warrants was Cdn$1.75 per special warrant. As additional consideration in connection with the private placement, the Corporation issued 789,566 special warrants to or to the direction of the agent and, upon the exercise of such special warrants, the Corporation issued 789,566 common share purchase warrants (the "2003 Agent Warrants"). Each 2003 Agent Warrant entitles the holder thereof to purchase one share of common stock of the Corporation (the "Agent Warrant Shares") at a price of $1.75 at any time up to December 15, 2008. This prospectus also relates to the offering of up to 789,566 Agent Warrant Shares.

In addition, the shares offered for sale pursuant to this prospectus include 1,104,300 shares (the "2004 Shares") and 552,150 additional shares (the "2004 Warrant Shares") issuable upon the exercise of 552,150 share purchase warrants (the "2004 Warrants"). The 2004 Shares and 2004 Warrants were sold as part of 1,104,300 units issued by the Corporation by private placement on September 30, 2004 at a price of $3.15 per unit. Each 2004 Warrant entitles the holder to acquire one 2004 Warrant Share at any time up to September 30, 2007, at a price of $3.75 per 2004 Warrant Share. The Selling Shareholders acquired the 2004 Shares and 2004 Warrants pursuant to a private placement of 1,104,300 units completed in September 2004. Each unit consisted of one 2004 Share and one half of one 2004 Warrant. The price of the units was $3.15 per unit.

The following table sets forth, as of September 30, 2004 and upon completion of the offering described in this prospectus, information with regard to the beneficial ownership of the Corporation's common shares by the Selling Shareholders. Information in the column "Total Shareholdings After Completion of Offering" is based on information provided to us by the Selling Shareholders at the time of closing the above transactions and is accurate to the best of the Corporation's knowledge. Subsequent to the time that the Selling Shareholders provided this information, one or more of them may have sold, transferred or otherwise disposed of all or a portion of their common shares in a transaction exempt from the registration requirements of the Securities Act. The Selling Shareholders may not have a present intention of selling the Shares or Warrant Shares and may offer less than the number of Shares and Warrant Shares indicated.
 
 
3

 


 
 
 
 
 
 
TOTAL
     
 
 
 
 
 
 
SHAREHOLDINGS
     
 
 
 
 
 
 
AFTER
     
SELLING SHAREHOLDER
 
 
 
NUMBER OF
 
COMPLETION OF
 
PERCENTAGE
 
NAME AND ADDRESS
 
NUMBER OF SHARES
 
WARRANT SHARES
 
OFFERING (1)
 
OWNERSHIP (2)
 
                   
Scott Craven
   
37,879
   
18,939.5
   
56,818.5
   
*
 
5 E. 22nd St., Apt. 10-D
                         
New York, NY 10010
                         
                           
Jeffrey B. Davis (3)
   
75,000
   
237,500
   
312,500
   
*
 
38 Tall Oaks Drive
                         
Summit, NJ 07901
                         
USA
                         
                           
Avtar Dhillon
   
37,879
   
18,939.5
   
56,818.5
   
*
 
11199 Sorrento Valley Rd.
                         
San Diego, CA 92121
                         
** Registered in the name of National Bank
                         
Financial as trustee for Avtar Dhillon
                         
                           
North Sound Legacy Fund LLC
   
101,516
   
50,758
   
152,274
   
*
 
53 Forest Avenue, Suite 202
                         
Old Greenwich, CT 06870
                         
                           
North Sound Legacy Institutional Fund LLC
   
913,636
   
456,818
   
1,370,454
   
3.8
%
53 Forest Avenue, Suite 202
                         
Old Greenwich, CT 06870
                         
                           
North Sound Legacy
   
1,522,726
   
761,363
   
2,284,089
   
6.1
%
International Ltd.
                         
53 Forest Avenue, Suite 202
                         
Old Greenwich, CT 06870
                         
                           
Winchester Global Trust Company Limited as
   
460,000
   
230,000
   
690,000
   
1.9
%
Trustee for Caduceus Capital Trust
                         
c/o OrbiMed Advisors LLC
                         
767 Third Avenue, 30th Floor
                         
New York, NY 10017
                         
Attn: Andrew Kanarek
                         
                           
Caduceus Capital II, L.P.
   
222,000
   
111,000
   
333,000
   
*
 
c/o OrbiMed Advisors LLC
                         
767 Third Avenue, 30th Floor
                         
New York, NY 10017
                         
Attn: Andrew Kanarek
                         
                           
HFR SHC Aggressive Fund
   
25,000
   
12,500
   
37,500
   
*
 
c/o OrbiMed Advisors LLC
                         
767 Third Avenue, 30th Floor
                         
New York, NY 10017
                         
Attn: Andrew Kanarek
                         
                           
   
445,000
   
222,500
   
667,500
   
1.9
%
c/o OrbiMed Advisors LLC
                         
767 Third Avenue, 30th Floor
                         
New York, NY 10017
                         
Attn: Andrew Kanarek
                         
                           
PW Eucalyptus Fund, Ltd.
   
63,000
   
31,500
   
94,500
   
*
 
c/o OrbiMed Advisors LLC
                         
767 Third Avenue, 30th Floor
                         
New York, NY 10017
                         
Attn: Andrew Kanarek
                         
                           
ProMed Offshore Fund, Ltd.
   
68,742
   
34,371
   
103,113
   
*
 
237 Park Ave., 9th Floor
                         
New York, NY 10017
                         
                           
ProMed Partners, L.P.
   
423,682
   
211,841
   
635,523
   
1.8
%
237 Park Ave., 9th Floor
                         
New York, NY 10017
                         
                           
Paul Scharfer
   
190,075
   
95,037.5
   
285,112.5
   
*
 
265 E. 66th St., Apt. 6C
                         
New York, NY 10021
                         
                           
SCO Capital Partners LLC (4)
   
378,788
   
678,960
   
1,057,748
   
2.9
%
1285 Avenue of the Americas
                         
35th Floor
                         
New York, NY 10019
                         
                           
Vertical Ventures, LLC
   
303,030
   
151,515
   
454,545
   
1.3
%
641 Lexington Avenue
                         
26th Floor
                         
New York, NY 10022
                         
                           
Orion Biomedical Fund LP
   
164,300
   
82,150
   
246,450
   
*
 
787 Seventh Avenue
                         
48th Floor
                         
New York, New York 10019
                         
                           
CC LifeScience Ltd.
   
235,000
   
117,500
   
352,500
   
1.0
%
345 N. Maple Drive
                         
Suite 206
                         
Beverly Hills, CA 90210
                         
                           
Spectra Financial Group
   
30,000
   
15,000
   
45,000
   
*
 
120 Broadway
                         
20th Floor
                         
New York, New York 10271
                         
                           
Daniel DiPietro
       
50,000
   
50,000
   
*
 
c/o ProMed Management Inc.
                         
237 Park Avenue, 9th Floor
                         
New York, New York 10017
                         
                           
Preston Tsao (5)
       
25,000
   
25,000
   
*
 
c/o SCO Financial Group LLC
                         
1285 Avenue of the Americas, 35th Floor
                         
New York, New York 10019
                         
                           
Joshua Golumb
       
25,000
   
25,000
   
*
 
215 West 95th Street, Apt. 15H
                         
New York, New York 10025
                         


 
4

 

The following information is as of February 23, 2006:

Xmark JV Investment Partners(6)
       
350,000
   
5,056,800
   
14.2
%
Xmark Funds
                         
301 Tresser Blvd, Suite 1320
                         
Stamford, CT 06901
                         
                           
XMark Fund, Ltd.(6)
   
313,850
   
156,925
   
5,056,800
(6)
 
14.2
%
Xmark Funds
                         
301 Tresser Blvd, Suite 1320
                         
Stamford, CT 06901
                         
                           
XMark Fund, L.P.(6)
   
186,150
   
93,075
   
5,056,800
(6)
 
14.2
%
Xmark Funds
                         
301 Tresser Blvd, Suite 1320
                         
Stamford, CT 06901
                         
                           
SDS Capital Group SPC, Ltd.
   
984.848
   
365,414
   
263,344
   
*
%
c/o SDS Management, LLC
                         
53 Forest Avenue, 2nd Floor
                         
Old Greenwich, CT 06870
                         
                           
BayStar Capital II, L.P.
   
675,000
   
114,510
   
0
   
*
%
80 East Sir Francis Drake Blvd.
                         
Suite 2B
                         
Larkspur, CA 94939
                         

____________________
* Less than one percent.
(1) Calculated on the assumption that all Shares and all Warrant Shares offered by each Selling Shareholder are sold. Figures stated include shares issuable pursuant to share purchase warrants exercisable within 60 days.
(2) To the best of our knowledge, assuming that all of the Shares and Warrants Shares offered by each Selling Shareholder are sold, no Selling Shareholder other than as indicated in this column will own or control in excess of 1% of our voting securities.
(3) This Selling Shareholder has represented that he is an affiliate of a registered broker-dealer. See "Plan of Distribution" for further information with respect to this Selling Shareholder. Jeffrey B. Davis received 200,000 2003 Agent Warrants and 37,500 2003 Warrants. In addition, Mr. Davis received 20,000 Placement Agent Warrants”.
(4) This Selling Shareholder has identified itself as a broker-dealer and, accordingly, is deemed an underwriter of these securities. See "Plan of Distribution" for further information with respect to this Selling Shareholder. SCO Capital Partners LLC received 489,566 2003 Agent Warrants and 189,394 2003 Warrants. In addition, SCO Capital Partners LLC received 70,000 Placement Agent Warrants.
(5) In addition, Preston Tsao received 5,000 Placement Agent Warrants.
(6) Beneficial ownership is calculated as defined in Rule 13d-1 under the Securities Exchange Act of 1934, as amended.
 
 
5