Resverlogix Activates Standby Equity Distribution Agreement
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TSX Exchange Symbol: RVX
CALGARY, March 29 /CNW/ - Resverlogix Corp. ("Resverlogix" or the "Company") (TSX:RVX) announces today that it has activated its standby equity distribution agreement ("SEDA") with YA Global Master SPV, Ltd. ("YA Global"), a fund managed by Yorkville Advisors, LLC, whereby Resverlogix has the option, at its sole discretion, to issue and sell, and YA Global is committed to purchase, up to CAD $25 million of common shares from treasury.
Under the SEDA, Resverlogix can draw on YA Global's commitment by submitting draw down notices from time to time. Each draw down notice is subject to a maximum amount of $500,000, as well as a minimum price below which the Company will not issue shares to YA Global. Subject to the applicable minimum price, the purchase price of the newly issued shares will be calculated based on a 5% discount of the market price of the Company's common shares; the shares will be qualified by prospectus and, as such, not subject to a hold period. The SEDA does not prevent Resverlogix from pursuing other financings and the SEDA can be terminated at any time by the Company without the payment of any additional fees. Full details of the terms and conditions of this agreement have been disclosed on SEDAR.
"As announced in December, the purpose of this financing vehicle is to provide Resverlogix with the ability to access strategic amounts of capital at its sole discretion. Resverlogix is in a nice position where we have access to readily available and flexible capital while continuing to review other finance related opportunities," said Donald J. McCaffrey, President and CEO of Resverlogix.
"We are very excited by our investment in Resverlogix and their novel approach and platform for development of new treatments for cardiovascular disease," said Dr. Michael J. Nowak, Managing Director at Yorkville Advisors, LLC.
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.
About Yorkville Advisors
Yorkville Advisors, LLC is the investment manager to a family of funds, which specializes in providing flexible, innovative finance investments in publicly listed companies worldwide. Pioneered nine years ago by Yorkville, a SEDA offers companies a cost effective way to raise capital to fund their business plans, growth strategies, or other corporate uses. Yorkville has offices in Jersey City, New Jersey; Jupiter, Florida; Denver, Colorado; London and Hong Kong. It also has joint venture agreements in Italy, Israel and Greece. For further information please visit www.yorkvilleadvisors.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.For 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