Resverlogix also Announces the Closing of $3.2 Million in Equity Financing
CALGARY, Alberta, April 11, 2018 (GLOBE NEWSWIRE) -- Resverlogix Corp. ("Resverlogix" or the "Company") (TSX:RVX) is pleased to announce today that it has accepted a commitment letter for a US$30 million senior secured loan (the “Loan”) with Third Eye Capital, one of Canada’s largest alternative lending firms, acting as agent for a syndicate of lenders (the “Lenders”). The Loan will have a term of 12 months, be repayable in part or in whole at any time, require payment of commitment and exit fees totaling US$1.5 million, and will bear interest at 10% per annum, payable monthly in cash. The Lenders will be entitled to receive 3,500,000 common share purchase warrants exercisable for a term of three years at a price of $1.77 per share, subject to regulatory approval. Final details will be announced upon closing which is anticipated to occur at the end of April 2018 but remains conditional upon receipt by the Lenders of certain final deliverables, including the execution of definitive loan and security documentation.
The Company also announces today that it has closed private placements for gross proceeds totaling approximately $3.2 million, consisting of approximately 1,800,000 shares at a weighted-average price of $1.78 per share.
“This is a significant financing step for Resverlogix as we advance toward the completion of the critical Phase 3 BETonMACE trial which is expected to unlock the true financial potential of the Company’s epigenetic technology. Trial results will provide major data sets on cardiovascular impact on diabetic patients, renal function and effects on chronic kidney disease patients as well as cognitive function effects in all patients over the age of 70,” stated Donald J. McCaffrey, President and CEO.
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 the first and only chronic BET inhibitor selective for the second bromodomain (BD2) within the BET protein called BRD4. 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 (CVD), diabetes mellitus (DM), 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. Apabetalone is currently being studied in a Phase 3 trial, BETonMACE, in high-risk CVD patients with type 2 DM and low high-density lipoprotein (HDL), and is expected to be initiated in a Phase 2a kidney dialysis trial designed to evaluate biomarker changes and safety parameters in up to 30 patients with end-stage renal disease treated with hemodialysis.
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 closing and terms of the Loan, the Phase 3 BETonMACE clinical trial, Phase 2a kidney dialysis clinical trial, and the potential role of apabetalone in the treatment of CVD, DM, chronic kidney disease, end-stage renal disease treated with hemodialysis, neurodegenerative disease, Fabry disease, peripheral artery disease and other 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.