Resverlogix Eliminates Sixty Percent of Remaining Debt

About this update from Resverlogix Corp.

[{"type":"text","content":"\n\n\n\nRestructure allows new scientific and business development flexibility\n\n\nTSX Exchange Symbol: RVX\n\n\nCALGARY, Oct. 15 /CNW/ - Resverlogix Corp. ("Resverlogix") (TSX:RVX)\nannounced today that it has redeemed USD$10 million or approximately 60% of\nits remaining USD$17.3 million debenture.\n\n\nDonald McCaffrey, President and CEO of Resverlogix stated, "The economic\nenvironment remains very volatile and challenging for companies around the\nglobe. This action limits our dilution on set terms that protect shareholders\nvalue and it enhances our flexibility to proceed with our ongoing scientific\nand business development plans. The US $10 million redemption will consist of\n2.4 million common shares with a value of US $5.5 million and US $4.5 million\ncash. Under the terms of the amendment, the conversion price has been amended\nto a five day volume weighted average price of $3.07 less 15% in exchange for\ndebenture holders agreeing to restrict any put options until March 31, 2009.\nAlong with the removal of future certain dilution factors the Company has also\ngained the option to buy out any remaining debenture at a 25% premium."\n\n\nThe following are key terms of the restructured convertible debenture:\n- In addition to the March 31, 2009 restriction on the put option, the\n ability to put to the Company in common shares has been waived by the\n debt holders.\n- The remaining principal balance of $278,000 carrying a 15% interest\n rate from the January 2007 convertible debenture has been reduced to\n 12% and rolled into the remaining convertible debt instrument.\n- Mandatory conversion of the entire debt at the Company's option at\n $5.22, subject to certain trading conditions being met.\n- The 1,467,349 outstanding warrants have been repriced to $3.07.\n\n\nTo assist shareholders with understanding the salient and beneficial\npoints to this amendment Resverlogix will post key facts to SEDAR.\n\n\nRodman & Renshaw, LLC served as an advisor to the company.\n\n\nThe transactions are subject to TSX approval.\n\n\nAbout Resverlogix Corp.\n\n\nResverlogix Corp. is a leading biotechnology company engaged in the\ndevelopment of novel therapies for important global medical markets with\nsignificant unmet needs. The NexVas(TM) program is the Company's primary focus\nwhich is to develop novel small m...

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