CALGARY, Alberta, Jan. 31, 2019 (GLOBE NEWSWIRE) -- Resverlogix Corp. ("Resverlogix" or the "Company") (TSX:RVX) announced today it has closed a private placement of approximately 2.2 million equity units to Shenzhen Hepalink Pharmaceutical Co. Ltd. (“Hepalink”) at a price of $3.00 per unit for gross proceeds of approximately $6.6 million (US$5 million). Each unit was comprised of one common share and one-half (1/2) of a common share purchase warrant. Each full warrant is exercisable at a price of $3.21 per share for a period of three years from the closing of the private placement. The units are subject to a four-month hold period.
After giving effect to the private placement, the Company has a total of 195,264,697 common shares issued and outstanding. Hepalink holds 77,233,398 common shares and 8,440,055 common share purchase warrants which represents 39.55 percent of the common shares outstanding before giving effect to any outstanding warrants and 42.06 percent of the outstanding common shares assuming the exercise by Hepalink of its warrants.
In addition to this first closing, the Company anticipates closing one or more additional subscriptions for equity units within the next 30 days.
The net proceeds of the private placement will be used to fund research and development activities, including but not limited to, clinical trial activities related to the Company’s Phase 3 BETonMACE trial, general and administrative expenses, repayment of debt, working capital needs and other general corporate purposes.
The subscription for units by Hepalink is a related party transaction within the meaning of applicable Canadian securities laws as Hepalink is an insider of the Company. The subscription by Hepalink is exempt from the formal valuation and minority approval requirements applicable to related party transactions on the basis that the value of the transaction insofar as it involves a related party is less than 25 percent of the Company's market capitalization.
Resverlogix is developing apabetalone (RVX-208), a first-in-class, small molecule that is a selective BET (bromodomain and extra-terminal) inhibitor. BET bromodomain inhibition is an epigenetic mechanism that can regulate disease-causing genes. Apabetalone is a BET inhibitor selective for the second bromodomain (BD2) within the BET proteins. This selective inhibition of apabetalone on BD2 produces a specific set of biological effects with potentially important benefits for patients with high-risk cardiovascular disease, diabetes mellitus, chronic kidney disease, end-stage renal disease treated with hemodialysis, neurodegenerative disease, Fabry disease, peripheral artery disease and other orphan diseases, while maintaining a well described safety profile.
Resverlogix common shares trade on the Toronto Stock Exchange (TSX:RVX).
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This news release may contain certain forward-looking information as defined under applicable Canadian securities legislation, that are not based on historical fact, including without limitation statements containing the words "believes", "anticipates", "plans", "intends", "will", "should", "expects", "continue", "estimate", "forecasts" and other similar expressions. In particular, this news release includes forward looking information relating to the use of proceeds of the private placement, additional closings, and the potential role of apabetalone in the treatment of CVD, DM, chronic kidney disease, end-stage renal disease treated with hemodialysis, Alzheimer's disease, Fabry disease, and Orphan diseases. Our actual results, events or developments could be materially different from those expressed or implied by these forward-looking statements. We can give no assurance that any of the events or expectations will occur or be realized. By their nature, forward-looking statements are subject to numerous assumptions and risk factors including those discussed in our Annual Information Form and most recent MD&A which are incorporated herein by reference and are available through SEDAR at www.sedar.com. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement and are made as of the date hereof. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.