Resverlogix Corp. ("Resverlogix") (TSX:RVX), announced that today it has entered into a definitive agreement for the sale and issuance of US $15 million in aggregate principal amount of Resverlogix's subordinated convertible promissory notes which are convertible initially into an aggregate of approximately 1.4 million shares of Resverlogix's common stock, and accompanying warrants to purchase approximately 361,000 shares of Resverlogix's common stock. The closing of the offering of the notes and warrants is expected to occur on or about January 5, 2007, subject to satisfaction or waiver of customary closing conditions. Oppenheimer & Co. Inc. acted as placement agent and Caris & co acted as co-agent for the offering. Under the terms of the offering, the notes will have an 8% interest rate, with the interest being payable solely by addition of such interest to the principal of the notes on a quarterly basis. The notes will be convertible into shares of common stock of Resverlogix at a conversion price of US $10.40 per share, subject to certain adjustments. The warrants will have an exercise price of US $13.00 per share, subject to certain adjustments.
