Business
Resverlogix to Spin-out RVX Therapeutics Inc. to Shareholders
Transaction Designed to Enhance Shareholder Value By Unlocking Value of the Epigenetics Pl...
About this update from Resverlogix Corp.
[{"type":"text","content":"\n\n\n\n\n\nTransaction Designed to Enhance Shareholder Value By Unlocking Value of\n the Epigenetics Platform\n\n\nTSX Exchange Symbol: RVX\n\n\nCALGARY, April 8, 2013 /CNW/ - Resverlogix Corp. (TSX:RVX)\n (\"Resverlogix\") today announced that its Board of Directors has\n approved a proposal to spin-out its subsidiary, RVX Therapeutics Inc.\n (\"RVX Therapeutics\"), which will focus on innovative drug research and\n development by leveraging its epigenetics platform. RVX Therapeutics\n will exclude Apolipoprotein A-1 (\"Apo A-1\") and RVX-208 technologies,\n rather focusing on multiple therapeutic indications including\n autoimmune diseases and cancer.\n\n\nThe spin-out is to be implemented by way of a court-approved Plan of\n Arrangement (\"the Arrangement\") pursuant to the Business Corporations\n Act (Alberta). The implementation of the Arrangement will be subject\n to, among other things, final board approval of the Arrangement and a\n shareholder vote.\n\n\nRationale\n\n\nThe spin-out of RVX Therapeutics reflects the Board of Director's and\n management's belief that it is in the best interests of shareholders to\n create a future value for its epigenetics platform and to provide a\n mechanism for the retention of possible future royalties on RVX-208\n sales, depending on the deal structure finally negotiated.\n\n\nBased on the belief that the RVX-208 program currently accounts for the\n entire market value of Resverlogix and that the value of the\n epigenetics platform is unrealized, the spinning out of RVX\n Therapeutics will facilitate a corporate structure that is more likely\n to reflect an accurate valuation of the epigenetics platform.\n\n\nThe objective of the spin-out is to split the clinical RVX-208 program\n (Resverlogix) from the epigenetics platform (RVX Therapeutics). In\n doing so, this process will create distinct corporate environments such\n that Resverlogix is structurally ready for acquisition while RVX\n Therapeutics' future value could be realized through a licensing and/or\n partnering business model.\n\n\nThis has the potential to unlock the future value for RVX Therapeutics\n via research and development of the epigenetic mechanism and\n establishes a potential royalty stream from RVX-208. Enhanced long-term\n shareholder value is provided through direct valuations related to any\n future licensin...