CALGARY, Alberta, Aug. 14, 2020 (GLOBE NEWSWIRE) -- Resverlogix Corp. ("Resverlogix" or the "Company") (TSX:RVX) announced today it has closed a private placement of 3,573,333 equity units at a price of $0.75 per unit for gross proceeds of approximately $2.7 million (US$2.0 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 $1.00 per share for a period of one year 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 216,663,554 common shares issued and outstanding. Shenzhen Hepalink Pharmaceutical Group Co., Ltd. (“Hepalink”) subscribed for all 3,573,333 units; it holds 85,286,524 common shares and 11,466,619 common share purchase warrants which represents 39.36 percent of the common shares outstanding before giving effect to any outstanding warrants.
The net proceeds of the private placement will be used to fund research and development activities, general and administrative expenses, 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 it is an insider of the Company. The subscription 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. Apabetalone is the first therapy of its kind to have been granted US FDA Breakthrough Therapy Designation – for a major cardiovascular indication – to help facilitate a time-efficient drug development program including planned clinical trials and plans for expediting the manufacturing development strategy.
BET 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).
Follow us on:
- Twitter: @Resverlogix_RVX
- LinkedIn: https://www.linkedin.com/company/resverlogix-corp-/
For further information please contact:
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 related to the use of proceeds of the private placement and the potential role of apabetalone in the treatment of 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. 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.