Business
Resverlogix Enters CAD $25 Million Standby Equity Agreement Term Sheet
Resverlogix Enters CAD $25 Million Standby Equity Agreement Term Sheet
About this update from Resverlogix Corp.
[{"type":"text","content":"\n\n\n\nDec. 16, 2009 (Canada NewsWire Group) -- CALGARY, Dec. 16 /CNW/ -- Resverlogix Corp. (\"Resverlogix\" or the \"Company\") (TSX:RVX) announces today that that it has signed a nonbinding term sheet for a standby equity distribution agreement (\"SEDA\") with YA Global Master SPV, Ltd, a fund managed by Yorkville Advisors, LLC (\"YA\"), whereby Resverlogix would have the option, at its sole discretion, to issue and sell up to CAD $25 million of its common shares to YA. The term sheet is nonbinding and the final agreement remains subject to definitive documentation and completion of due diligence to the satisfaction of both the Company and YA.Under the SEDA, Resverlogix would be able to sell, and YA would be obligated to buy, up to CAD $500,000 of Resverlogix common shares in any ten-day period. The common shares sold under the SEDA would be purchased at a discount to the market price. The SEDA would not prevent Resverlogix from exploring and entering into other potential financing agreements. In the event the SEDA closes, full details of all terms and conditions will be disclosed.The final SEDA will also be subject to certain conditions precedent, including receipt of exemptive relief from applicable Canadian securities regulators, from certain requirements of applicable Canadian securities laws, the filing of a base shelf prospectus with applicable Canadian securities regulators and the approval of the Toronto Stock Exchange.\"We have entered a period of increased activity in our ApoA-I programs. This agreement will provide Resverlogix with the flexibility to draw strategic amounts of capital at its discretion, thus placing the Company in a more comfortable position for pursuing our development plans,\" said Donald J. McCaffrey, President and CEO of Resverlogix.About ApoA-IRVX-208, a novel small molecule therapeutic that facilitates endogenous ApoA-I production, is positioned to be one of the most promising emerging drugs in the treatment of atherosclerosis. To the Company's knowledge RVX-208 is the only novel small molecule that is specifically designed to increase ApoA-I production and thereby raise HDL levels thus enhancing HDL functionality to augment reverse cholesterol transport (RCT). RCT is a pathway by which accumulated cholesterol is transported from the arterial wall to the liver for excretion, thus preventing at...