Resverlogix Corp. (TSX: RVX) has completed previously announced US $30 million senior secured loan with Third Eye Capital.
Resverlogix intends to use proceeds to fund research and development activities, including but not limited to, clinical trial activities related to the Phase 3 BETonMACE trial, general and administrative expenses, working capital needs and other general corporate purposes.
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.
Shenzhen Hepalink Pharmaceutical Co., Ltd. (SZSE: 002399) and family office Eastern Capital Limited are two largest shareholders of Resverlogix Corp.
Resverlogix Closes US$30 Million Loan
CALGARY, Alberta, May 07, 2018 — Resverlogix Corp. (“Resverlogix” or the “Company”) (TSX:RVX) announced today that it has closed the previously announced US$30 million senior secured loan (the “Loan”) with Third Eye Capital.
The net proceeds of the Loan will be used to fund research and development activities, including but not limited to, clinical trial activities related to the Phase 3 BETonMACE trial, general and administrative expenses, working capital needs and other general corporate purposes.
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 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 (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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