pcJ News Briefs – Resverlogix Corp. (TSX: RVX) has completed previously announced financing with Shenzhen Hepalink Pharmaceutical Co. Ltd. (SHE: 002399) of 0,416,667 equity units at $1.44 per unit for gross proceeds of $87 million.
Following the closing of the private placement, Resverlogix will have 175,040,756 common shares issued and outstanding. Hepalink holds 75,020,000 common shares and 7,333,333 common share purchase warrants, representing 42.86% of the common shares outstanding or 45.16% of the outstanding common shares on partially diluted basis.
photo credit: Resverlogix
Resverlogix Closes Previously Announced $87 Million Private Placement with Shenzhen Hepalink
CALGARY, Alberta, Dec. 04, 2017 — Resverlogix Corp. (“Resverlogix” or the “Company”) (TSX:RVX) announced today that it has closed its previously announced private placement of 60,416,667 equity units to Shenzhen Hepalink Pharmaceutical Co. Ltd. (“Hepalink”) at a price of $1.44 per unit for gross proceeds of $87 million. Each unit was comprised of one common share and 0.082759 of a common share purchase warrant. Each full warrant is exercisable at a price of $1.64 per share for a period of four years from the closing of the offering.
After giving effect to the private placement, the Company has a total of 175,040,756 common shares issued and outstanding.
Hepalink holds 75,020,000 common shares and 7,333,333 common share purchase warrants which represents 42.86 percent of the common shares outstanding before giving effect to any outstanding warrants and 45.16 percent of the outstanding common shares assuming the exercise by Hepalink of its warrants.
The net proceeds of the offering will primarily be used to repay the Company’s $68.8 million secured loan which matures on December 26, 2017.
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 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 the only selective BET bromodomain inhibitor in human clinical trials. 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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