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UNITED STATES NEWSWIRE SERVICES OR
FOR DISSEMINATION
IN THE UNITED
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CALGARY,
June 20, 2017
/CNW/ - Resverlogix Corp. ("Resverlogix" or the "Company")
(TSX:RVX) today closed its previously-announced offering, issuing a
total of $10 million of its equity
units.
Eastern Capital Limited ("Eastern") and Shenzhen Hepalink
Pharmaceutical Co., Ltd. ("Hepalink") purchased a total of
2,951,313 equity units at a price of $1.80 per unit for aggregate proceeds of
$5.3 million pursuant to a
non-brokered private placement. Eastern and Hepalink purchased
1,617,980 and 1,333,333 equity units, respectively. In addition,
under the previously-announced overnight marketed equity offering
conducted by Bloom Burton Securities Inc., subscribers purchased an
additional 2,552,489 equity units at a price of $1.80 per unit for aggregate proceeds of an
additional $4.6 million.
Each equity unit consists of one common share and one
common share purchase warrant. Each warrant is exercisable at a
price of $2.05 per underlying common
share for a period of four years from the closing of the offering.
The units purchased pursuant to the overnight marketed equity
offering were qualified for sale by way of a prospectus supplement
dated June 13, 2017 to Resverlogix's
base shelf prospectus dated October 1,
2015 (together, the "Prospectus"), which was filed in each
of the Provinces of Canada, other than Quebec. The units purchased by
Eastern and Hepalink were purchased pursuant to a private placement
and are subject to a four month hold period. After the completion
of the offerings, Resverlogix has 111,205,345 common shares issued
and outstanding.
Prior to completion of the offerings, Eastern held
20,565,307 common shares and 8,000,237 common share purchase
warrants of Resverlogix which represented 19.46 percent of the
common shares outstanding before giving effect to any outstanding
warrants and 25.12 percent of the outstanding common shares
assuming the exercise by Eastern of its warrants. After giving
effect to the offerings, Eastern holds 22,183,287 common shares and
9,618,217 common share purchase warrants which represents 19.95
percent of the common shares outstanding before giving effect to
any outstanding warrants and 26.32 percent of the outstanding
common shares assuming the exercise by Eastern of its
warrants.
Prior to completion of the offerings, Hepalink held
13,270,000 common shares and 1,000,000 common share purchase
warrants of Resverlogix which represented 12.55 percent of common
shares outstanding before giving effect to any outstanding warrants
and 13.37 percent of the outstanding common shares assuming the
exercise by Hepalink of its warrants. After giving effect to the
offerings, Hepalink holds 14,603,333 common shares and 2,333,333
common share purchase warrants which represents 13.13 percent of
the common shares outstanding before giving effect to any
outstanding warrants and 14.92 percent of the outstanding common
shares assuming the exercise by Hepalink of its
warrants.
The subscriptions for units by Eastern and Hepalink are
related party transactions within the meaning of applicable
Canadian securities laws as Eastern and Hepalink are insiders of
the Company. The subscriptions by Eastern and Hepalink are exempt
from the formal valuation and minority approval requirements
applicable to related party transactions on the basis that the
value of the transactions insofar as they involve related parties
is less than 25 percent of the Company's market
capitalization.
The net proceeds of the offerings will be used to fund
research and development activities, including but not limited to,
clinical trial activities related to the Phase 3 BETonMACE trial,
the Phase 2a kidney dialysis trial and Fabry disease
trial, general and administrative expenses, working
capital needs and other general corporate purposes.
The securities described herein have not been, and will
not be, registered under the United States Securities Act of 1933,
as amended (the "U.S. Securities Act"), or any state securities
laws, and accordingly, may not be offered or sold to, or for the
account or benefit of, persons in the
United States or to U.S. Persons (as such term is defined in
Regulation S under the U.S. Securities Act), except in compliance
with the registration requirements of the U.S. Securities Act and
applicable state securities requirements or pursuant to exemptions
therefrom. This press release does not constitute an offer to sell
or a solicitation of an offer to buy any of the Company's
securities to, or for the account or benefit of, persons in
the United States or U.S.
Persons.
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 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, dialysis, Alzheimer's
disease, Fabry disease, other orphan diseases, and peripheral
artery disease, 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 and warrants trade on the
Toronto Stock Exchange (TSX:RVX and RVX.WT).
Follow us on Twitter:
@Resverlogix_RVX (https://twitter.com/resverlogix_rvx),
or on our blog
at http://www.resverlogix.com/blog
For further information please contact:
Investor Relations
Email: ir@resverlogix.com
Phone: 403-254-9252
Or visit our
website: www.resverlogix.com
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 use of net proceeds from the offerings,
and the potential role of apabetalone in the treatment of CVD, DM,
chronic kidney disease, end-stage renal disease treated with
hemodialysis, Alzheimer's disease, Fabry disease, and 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.
SOURCE Resverlogix Corp.