Resverlogix Announces $13 Million Private Placement
CALGARY, Alberta, Oct. 06, 2020 (GLOBE NEWSWIRE) -- Resverlogix Corporation. ("Resverlogix" or the "Company") (TSX:RVX) announced today that it has entered into a definitive stock purchase agreement for a private placement of 10,560,000 equity units at a price of $1.25 per unit for gross proceeds of $13.2 million (US$10 million). Each unit will be comprised of one common share and one common share purchase warrant. Each warrant will be exercisable at a price of $1.50 per share for a period of nine months from the closing of the offering. The units will be subject to a four-month hold period from closing. The private placement is subject to satisfaction of a foreign government’s investment review, due diligence conditions, customary closing conditions for a transaction of this nature and receipt of all necessary regulatory and stock exchange approvals, and is expected to close on or before January 15, 2021. With a private placement such as this, there can be no assurance that the closing conditions in the stock purchase agreement will be satisfied or that the private placement will be completed.
The net proceeds of the offering will primarily be used to fund research and development activities, 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. 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).
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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 a private placement of equity unitsand the use of proceeds therefrom, 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.