Resverlogix Announces Private Placement

https://www.resverlogix.com/investors/news.html?article=672

CALGARY, Alberta, Aug. 14, 2020 (GLOBE NEWSWIRE) -- Resverlogix Corp. ("Resverlogix" or the "Company") (TSX:RVX) announced today it has closed a private placement of 3,573,333 equity units at a price of $0.75 per unit for gross proceeds of approximately $2.7 million (US$2.0 million). Each unit was comprised of one common share and one-half (1/2) of a common share purchase warrant. Each full warrant is exercisable at a price of $1.00 per share for a period of one year from the closing of the private placement. The units are subject to a four-month hold period.

After giving effect to the private placement, the Company has a total of 216,663,554 common shares issued and outstanding. Shenzhen Hepalink Pharmaceutical Group Co., Ltd. (“Hepalink”) subscribed for all 3,573,333 units; it holds 85,286,524 common shares and 11,466,619 common share purchase warrants which represents 39.36 percent of the common shares outstanding before giving effect to any outstanding warrants.

The net proceeds of the private placement will be used to fund research and development activities, general and administrative expenses, working capital needs and other general corporate purposes.

The subscription for units by Hepalink is a related party transaction within the meaning of applicable Canadian securities laws as it is an insider of the Company. The subscription is exempt from the formal valuation and minority approval requirements applicable to related party transactions on the basis that the value of the transaction insofar as it involves a related party is less than 25 percent of the Company's market capitalization.

About Resverlogix

Resverlogix is developing apabetalone (RVX-208), a first-in-class, small molecule that is a selective BET (bromodomain and extra-terminal) inhibitor. Apabetalone is the first therapy of its kind to have been granted US FDA Breakthrough Therapy Designation – for a major cardiovascular indication – to help facilitate a time-efficient drug development program including planned clinical trials and plans for expediting the manufacturing development strategy.

BET inhibition is an epigenetic mechanism that can regulate disease-causing genes. Apabetalone is a BET inhibitor selective for the second bromodomain (BD2) within the BET proteins. This selective inhibition of apabetalone on BD2 produces a specific set of biological effects with potentially important benefits for patients with high-risk cardiovascular disease, diabetes mellitus, chronic kidney disease, end-stage renal disease treated with hemodialysis, neurodegenerative disease, Fabry disease, peripheral artery disease and other orphan diseases, while maintaining a well described safety profile.

Resverlogix common shares trade on the Toronto Stock Exchange (TSX:RVX).

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For further information please contact:

Investor Relations
Email: [email protected]
Phone: 403-254-9252
Or visit our website: www.resverlogix.com