Resverlogix secures US $30M loan commitment with Third Eye Capital

Resverlogix Corp. (TSX:RVX) has accepted a commitment letter for a US $30 million senior secured loan with Third Eye Capital, one of Canada’s largest alternative lending firms, acting as agent for a syndicate of lenders.

The transaction is expected to close at end of April.

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.

Shenzhen Hepalink Pharmaceutical Co., Ltd. (SZSE: 002399) and family office Eastern Capital Limited are two largest shareholders of Resverlogix Corp.

photo credit: Resverlogix

News Release

Resverlogix Announces US$30 Million Loan Commitment Letter

Resverlogix also Announces the Closing of $3.2 Million in Equity Financing

CALGARY, Alberta, April 11, 2018 — 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.

About Resverlogix

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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For further information please contact:
Investor Relations
Email:ir@resverlogix.com
Phone: 403-254-9252
Or visit our website: www.resverlogix.com

Ted Liu

Ted Liu, M.Sc. (Mining), MBA (Finance), is the Editor of Private Capital Journal, CanadaMetals.ca, TechWire.ca, and the former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, having most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA).

Ted is the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, Canada's most sophisticated and advanced all private capital and public market financing database.