Resverlogix Settles Draw Down on Standby Equity Distribution Agreement
/THIS PRESS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH US NEWSWIRE SERVICES./
TSX Exchange Symbol: RVX
CALGARY, June 11 /CNW/ - Resverlogix Corp. ("Resverlogix" or the "Company") (TSX:RVX) announces today it has settled $200,000 of the previously announced draw down under its standby equity distribution agreement ("SEDA") with YA Global Master SPV Ltd. ("YA"). Under the draw down, Resverlogix issued 51,290 common shares to YA at a price of $ 3.90 per common share. In accordance with the terms of the SEDA, the common shares were issued at a discount of 5% to the volume weighted average price ("VWAP") of the common shares of Resverlogix traded on the Toronto Stock Exchange over the first two trading days following Resverlogix's notice of its intention to draw down on the SEDA on May 26, 2010.
Following the completion of the issuance of shares to YA, Resverlogix has 48,828,376 shares outstanding.
In connection with the draw down, Resverlogix will file a prospectus supplement to its short-form base shelf prospectus to qualify the shares issued to YA. Copies of the final short-form base shelf prospectus and prospectus supplement will be filed on SEDAR (www.sedar.com).
Securities Laws Matters
Securities legislation in the provinces of British Columbia, Alberta and Ontario provides purchasers with the right to withdraw from an agreement to purchase securities. This right may be exercised within two business days after receipt or deemed receipt of a prospectus and any amendment. The securities legislation further provides a purchaser with remedies for rescission or, in some jurisdictions, revisions of the price or damages if the prospectus and any amendment are not delivered to the purchaser, provided that the remedies for rescission, revisions of the price or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the purchaser's province. However, such rights and remedies will not be available to purchasers of Common Shares distributed under the short form base shelf prospectus, as supplemented by the prospectus supplement relating to the draw down, because the prospectus will not be delivered to purchasers, as permitted under a decision document issued by the Alberta Securities Commission on February 19, 2010.
The securities legislation further provides a purchaser with remedies for rescission or, in some jurisdictions, revisions of the price or damages if the prospectus and any amendment contains a misrepresentation, provided that the remedies for rescission, revisions of the price or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the purchaser's province. Such remedies remain unaffected by the non-delivery of the prospectus, as permitted under the decision document referred to above.
The purchaser should refer to any applicable provisions of the securities legislation of the purchaser's province for the particulars of these rights or consult with a legal adviser.
About Resverlogix Corp.
Resverlogix Corp. is a leading biotechnology company engaged in the development of novel therapies for important global medical markets with significant unmet medical needs. The NexVas(TM) PR program is the Company's primary focus which is to develop novel small molecules that enhance ApoA-I. These vital therapies address the burden of atherosclerosis and other important diseases such as Acute Coronary Syndrome, Diabetes, Alzheimer's disease, Peripheral Artery Disease and other vascular disorders. Resverlogix Corp.'s common shares trade on the Toronto Stock Exchange (TSX:RVX). For further information please visit www.resverlogix.com.
This news release may contain certain forward-looking statements as defined under applicable Canadian securities legislation, including our statements with respect to the SEDA, future financings, research, development and commercialization of novel therapeutics that reduce the risk of cardiovascular disease including atherosclerosis, diabetes, Alzheimer's disease, Peripheral Artery Disease and other vascular diseases. These forward-looking statements contained herein 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. 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 known and unknown risks and uncertainties including but not limited to those associated with the success of research and development programs, clinical trial programs including possible delays in patient recruitment, the regulatory approval process, competition, securing and maintaining corporate alliances, market acceptance of the Company's products, the availability of government and insurance reimbursements for the Company's products, the strength of intellectual property, financing capability, the potential dilutive effects of any financing, reliance on subcontractors and key personnel and additional risk factors discussed in other documents we file from time to time with securities authorities, which are available through SEDAR at www.sedar.com. Additionally, risks and uncertainties are discussed in detail in the January 31, 2010 MD&A. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement 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. The TSX Exchange does not accept responsibility for the adequacy or accuracy of this news release.
%SEDAR: 00019253EFor further information: Theresa Kennedy, VP, Corporate Communications, Resverlogix Corp., Phone: 604-538-7072, Fax: 403-256-8495, Email: Theresa@resverlogix.com; Sarah Zapotichny, Manager, Investor Relations, Resverlogix Corp., Phone: 403-254-9252, Fax: 403-256-8495, Email: Sarah@resverlogix.com