CALGARY, Alberta, April 01, 2019 (GLOBE NEWSWIRE) -- Resverlogix Corp. ("Resverlogix" or the "Company") (TSX:RVX) announced today it has closed private placements of approximately 4.5 million equity units to Shenzhen Hepalink Pharmaceutical Co. Ltd. (“Hepalink”) and 0.6 million equity units to other subscribers at a price of $3.00 per unit for gross proceeds of approximately $15.1 million (US$11.3 million). Each unit was comprised of one common share and one-half (1/2) of a common share purchase warrant. Each full warrant is exercisable at a price of $3.21 per share for a period of three years from the closing of the private placements. The units are subject to a four-month hold period.
After giving effect to the private placements, the Company has a total of 200,307,484 common shares issued and outstanding. Hepalink holds 81,713,191 common shares and 10,679,951 common share purchase warrants which represents 40.79 percent of the common shares outstanding before giving effect to any outstanding warrants and 43.79 percent of the outstanding common shares assuming the exercise by Hepalink of its warrants.
The net proceeds of the private placements will be used to fund research and development activities, including but not limited to, clinical trial activities related to the Company’s Phase 3 BETonMACE trial, general and administrative expenses, repayment of debt, working capital needs and other general corporate purposes.
The subscription for units by Hepalink is a related party transaction within the meaning of applicable Canadian securities laws as Hepalink is an insider of the Company. The subscription by Hepalink is exempt from the formal valuation and minority approval requirements applicable to related party transactions on the basis that the value of the transaction insofar as it involves a related party is less than 25 percent of the Company's market capitalization.
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 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).