Koo/Tada - We are missing some information to settle this issue. Within the first excerpt below from the Prospectus, there were 4 million units offered in the PO excepting the 1 million non-brokered to be sold by the company. The PP was not part of it and 3.8 million units were subscribed to. That amounts to 266,000 Broker Warrants. The extra 1 million is by PP as RVX has called it and has not been announced as subscribed so the 3.8 million is within the PO. That gives a little over 4 million 'A' warrants. The second paragraph below from the Prospectus shows how that is calculated as 7% of the aggregate number of units issued to the offering. Since BB would not receive any warrants from the PP, this shows that they are only referring to the Offering as the PO.

I think there might be some confusion in that second paragraph as to the price being $4.00 or $4.60 to exercise. If you remove the extra phrases in the middle of the pertinent sentence, you end up with a sentence as I have posted at the bottom. It simply states that the Broker warrants will be exercisable for Broker Warrant Shares at $4.60. $4.00 is only the price for units of which the broker does not subscribe to any. Broker Warrant Shares are defined below.

The information that we don't know to settle this is, have the units proposed for the PP been issued from Treasury and listed? They might have been and might not have been. There is no real reason to have unless it was to save some legal or listing fess which I am not sure it would. They have not been subscribed to so not necessary to have been issued or listed. What I would say is that they should not be available for trading because if they are listed, they would be owned by Resverlogix. If RVX was willing to trade warrants owned by them, I think they should have announced that with the rest of their announcement.

"Pursuant to the Agency Agreement to be entered into between the Corporation and the Agent, the Corporation agreed to sell and the Agent agreed to arrange, on a best efforts basis, for purchasers of a minimum of 3,250,000 Units and a maximum of 4,000,000 Units at a price of $4.00 per Unit payable in cash to the Corporation against delivery of the Units for minimum gross proceeds of $13,000,000 and maximum gross proceeds of $16,000,000 (excluding up to 1,000,000 Units for gross proceeds of $4,000,000 that may be issued pursuant to the Non-Brokered Offering). The Units will be sold as Units, but, upon issuance, will immediately separate into and will be settled as Offered Shares and Warrants. The Offering Price was determined by negotiation between the Corporation and the Agent."

"The Corporation has agreed to grant, on each Closing Date, a number of Broker Warrants to the Agent equal to 7% of the aggregate number of Units issued pursuant to the Offering on such Closing Date. Each Broker Warrant, whether issued on the first Closing Date or a subsequent Closing Date, shall be exercisable for a period of 24 months following the first Closing Date for one Broker Warrant Share at an exercise price equal to the Offering Price. This short form prospectus qualifies the grant of the Broker Warrants."

Broker Warrant Shares means the Common Shares which may be issued on the exercise of the Broker Warrants.

Below is my version of the Paragraph 2 sentence with the confusing phrases removed. 

Each Broker Warrant shall be exercisable at an exercise price equal to the Offering Price.