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Message: Re: So.....? ... just takes one...
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Great discussion going on. I really appreciate reading all of the different perspectives of this latest Hepalink Private Placement. Just a few additional observations/questions:
Another deal? The 8/28/17 news release used "and/or" language to describe the licensing arrangement and/or equity investment. Assuming that the $87M Hepalink "private placement" is considered an "equity investment," then the "and/or" language still leaves the door open for the "letter of intent regarding a significant potential regional licensing arrangement" to still be in play. This is key since the $87M Hepalink private placement is only enough to cover the loan, accounts payable, and only a couple months at current burn rate.
Financial Hardship Exemption? What if, as also asked by Imtesty, the TSX does not approve of the Financial Hardship Exemption Application to exempt this private placement from shareholder approval? Would there be enough time (and enough votes) to approve this private placement as a voting matter at the December 12 AGM prior to the December 26 extended maturity date of the loan? Is the need to raise funds to cover the $12 million USD accounts payable and fund the $3 million/month burn rate so urgent that waiting for a December 12 AGM vote is not an option? If I read the news release correctly, there is an urgency that does not afford enough time to wait for an AGM vote. So this TSX approval of the exemption is key.
Remedial Delisting Review? Regardless of the outcome of the TSX decision on the Financial Hardship Exemption Application, it sounds like a Remedial Delisting Review will occur by the TSX as well. As Imtesty brought up, what are the implications of a delisting of RVX from the TSX and also a delisting of RVXCF?
It could be that the TSX approval of these above two matters is just a formality (though the news release cautions no guarantee). Hopefully we get quick turnaround approval by the TSX on the Financial Hardship Exemption Application/Delisting Review.
Implications of Hepalink's 43% Ownership? If and when this Hepalink Private Placement gets approved, what we know for sure is that Hepalink will now have about 43% of outstanding shares. Based on the posts on Agoracom, Stockhouse and Investor Village, I don't see a consensus as to the Implications of Hepalink's 43% ownership. Although Hepalink has more shares, they still only have one member on the Board of Directors. Anyone level headed care to take a stab at presenting the implications (both good and bad) of this latest private placement in regards to the future of Resverlogix?
What to expect in the short term?
-BIO Investor October 17th
-Decision (Approval?) of Financial Hardship Exemption by TSX to allow Hepalink Deal and Decision (No Action Taken?) upon Remedial Delisting Review
-Update on FDA adjustment to BETonMACE trial protocol to include US patients.
-Update on discussions/decision between DSMB and CSC regarding timing/changes to futility analysis.
-Fifth DSMB report (may or may not come simultaneous with futility analysis)
-Results of futility analysis
-Full enrollment of BETonMACE (projected to be Fall 2017 in 7/10/17 news release, which was prior to 7/25/17 news release regarding approval pathway from FDA as to the inclusion of USA patients so changes may be coming).
-AGM December 12
-Funding from a potential (letter of intent) "significant potential regional licensing arrangement" referenced in the 8/28/17 news release or other deal/investement/partnership. Contingent on futility analysis?
-Start of apabetalone renal Phase 1/2 and Fabry Phase 1 trial
-IND for second compound, orphan plans (PNH Trial, etc) for apabetalone, and plans for 7 follow on compounds
And here's just a few snippets from the relevant news releases to support the above:
From 10/13/17 NR: "The Company currently has accounts payable in excess of cash of approximately US $12 million and the outstanding Loan in the principal amount of $68.8 million...In addition, the Company requires cash of approximately US$3 million per month to sustain operating activities."
From 8/28/17 NR: "The Company also announces that it has received a letter of intent regarding a significant potential regional licensing arrangement (the "License") for apabetalone (RVX-208), and/or a significant equity investment in the Company. The License is expected to include an upfront payment and on-going milestone and royalty payments. Management will continue to diligently pursue this opportunity. Additional licensing opportunities are also in discussion."
From 10/13/17 NR:
"Financial Hardship Exemption Application
The private placement requires disinterested shareholder approval pursuant to requirements of the Toronto Stock Exchange (“TSX”), unless an exemption is obtained....The Company applied for an exemption from the shareholder approval requirement on the basis of financial hardship, given that the immediacy of the Company’s need to address its financial difficulties through the private placement does not afford it sufficient time to hold a meeting of shareholders."
From 10/13/17 NR:
"Remedial Delisting Review
As a consequence of relying upon the financial hardship exemption....the Company expects that the TSX will commence a remedial delisting review, which is normal practice when a listed issuer seeks to rely on this exemption....no assurance can be provided as to the outcome of such review and, therefore, the Company’s continued qualification for listing on the TSX."
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