CALGARY, Oct. 14, 2020 (GLOBE NEWSWIRE) -- Resverlogix Corp. ("Resverlogix" or the "Company") (TSX:RVX) announced today that Vision Leader Limited, a wholly-owned subsidiary of ORI Star Fund LP ("ORI"), has delivered a notice of conversion to convert its entire September 2019 debenture and associated interest, into Resverlogix common shares, which will discharge all security interests associated with the debenture. The US$12 million (approximately CAD$15.8 million) principal amount of the debenture and accrued interest in the amount of approximately US$1.3 million (approximately CAD$1.7 million) will be converted into an aggregate of approximately 16.1 million common shares at a price of CAD$1.08 per share. The conversion is not subject to any conditions, other than approval of the Toronto Stock Exchange for the conversion of the accrued interest, and is expected to close imminently.
"We strongly believe this conversion illustrates ORI's confidence in our corporate strategy and management team," said Donald McCaffrey, President and CEO of Resverlogix. "We are thankful to ORI who continues to support us in our mission to generate significant shareholder value through the ongoing development of apabetalone. The conversion will remove the outstanding ORI debt and significantly strengthen our overall balance sheet."
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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This news release may contain certain forward-looking information as defined under applicable Canadian securities legislation, that are not based on historical fact, including without limitation statements containing the words "believes", "anticipates", "plans", "intends", "will", "should", "expects", "continue", "estimate", "forecasts" and other similar expressions. In particular, this news release includes forward looking information relating tothe potential role of apabetalone in the treatment of 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. Our actual results, events or developments could be materially different from those expressed or implied by these forward-looking statements. We can give no assurance that any of the events or expectations will occur or be realized. By their nature, forward-looking statements are subject to numerous assumptions and risk factors including those discussed in our Annual Information Form and most recent MD&A which are incorporated herein by reference and are available through SEDAR at www.sedar.com. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement and are made as of the date hereof. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.