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On The Block

A.P. Pharma Inc. has reached a financing agreement with Tang Capital Partners LP and other investors for up to $4.5 million. Redwood City, Calif.-based A.P. Pharma expects an initial $1.5 million upon closing. It plans to use proceeds to meet milestones for the resubmission of a new drug application for APF530, a drug candidate designed to prevent both acute and delayed-onset of chemotherapy-induced nausea and vomiting. The developer of a drug delivery technology expects it will have to seek additional debt or equity financing or evaluate strategic alternatives.

Flanders Corp., in reviewing strategic alternatives to enhance shareholder value, has hired Oppenheimer & Co. Inc. to serve as an exclusive financial adviser for the process. For 2010, revenue rose 10 percent to $244.3 million from $222.4 million a year earlier. The growth reflects a solid increase in the company’s retail product lines, Flanders said in mid-April. Flanders makes filtration products used by the heating, ventilation and air conditioning, biotechnology and other industries. The Washington, N.C.-based company does not plan to discuss the review unless a specific deal or the process is completed.

Iron Mountain Inc. is implementing a strategic plan to drive its return on invested capital and enhance shareholder value. Part of the program calls for market-specific initiatives to improve its international portfolio’s ROIC. The information management company is also exploring the sale and other options for its digital business. It created a special committee to review financing, capital and tax strategies as well. One option under evaluation is a conversion of the Boston, Mass.-based company into a real-estate investment trust.

Blackboard Inc. received an unsolicited nonbinding acquisition proposal. Financial details were not disclosed. The Washington D.C.-based provider of software to educational institutions is evaluating the bid and considering other strategic alternatives. It will check if other parties would be interested in the company. In Addition, Blackboard plans to review the option of continuing its business plan as a stand-alone concern. It hired Barclays Capital to serve as a financial adviser.