Resverlogix Provides Update Regarding Two-Year Extension of Debenture and Elimination of Conversion Privileges

Rhea-AI Summary

Resverlogix Corp. (TSX: RVX) has announced a two-year extension of its US$6.0 million secured convertible debenture with Shenzhen Hepalink Pharmaceutical Group Co., The maturity date has been extended to May 13, 2026. Key changes include:

1. Elimination of Hepalink's conversion privileges
2. Increase in interest rate from 12% to 18% per annum, effective May 14, 2024
3. Additional reporting requirements for Resverlogix
4. Continuation of normal business operations

The amendment is subject to Toronto Stock Exchange and shareholder approval. Shareholders will vote on the amendments at Resverlogix's annual and special meeting on July 31, 2024. Hepalink has agreed to forbear from enforcing the debenture, contingent on shareholder approval.

Positive

• Two-year extension of US$6.0 million secured convertible debenture
• Hepalink's agreement to forbear from enforcing the debenture

Negative

• Increase in interest rate from 12% to 18% per annum
• Additional reporting requirements for Resverlogix
• Elimination of conversion privileges, potentially reducing flexibility for the lender

Calgary, Alberta--(Newsfile Corp. - July 16, 2024) - Resverlogix Corp. (TSX: RVX) ("Resverlogix" or the "Company") announced it has entered into definitive transaction documents for the two-year extension of the Company's US$6.0 million secured convertible debenture (the "Debenture") with Shenzhen Hepalink Pharmaceutical Group Co., Ltd. ("Hepalink") (and payment of accrued interest thereon), extending the maturity date to May 13, 2026. As previously announced, in connection with the extension, Hepalink's conversion privileges have been eliminated and the interest rate has been amended from 12% to 18% per annum, commencing on May 14, 2024. The amendments to the Debenture also require Resverlogix to provide additional reporting to Hepalink and continue normal business operations. The amendment is subject to customary closing conditions and approval of the Toronto Stock Exchange and shareholders of Resverlogix, in accordance with TSX requirements. Hepalink agreed to forbear from enforcing the Debenture provided that, among other conditions, shareholder approval for the amendments to the Debenture is obtained. Shareholders will be asked to approve the amendments to the Debenture at Resverlogix's annual and special meeting of shareholders on July 31, 2024.

About Resverlogix

Founded in 2001, Resverlogix is a Calgary based late-stage biotechnology company, and a world leader in epigenetics, with the goal of developing first-in-class therapies for the benefit of patients with chronic disease.

Resverlogix is developing a new class of epigenetic therapies designed to regulate the expression of disease-causing genes. We aim to improve patients' lives by restoring biological functions - altered by serious illnesses such as cardiovascular disease - back to a healthier state.

The Company's clinical program is focused on evaluating the lead epigenetic candidate apabetalone for the treatment of cardiovascular disease, associated comorbidities, and post COVID-19 conditions.

Resverlogix has partnered with EVERSANA™, the pioneer of next generation commercial services to the global life sciences industry, to support the rapid commercialization of apabetalone for cardiovascular disease, post COVID-19 conditions, and pulmonary arterial hypertension in Canada and the United States.

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

Follow us on:

• Twitter: @Resverlogix_RVX
• LinkedIn: https://www.linkedin.com/company/resverlogix-corp-/

Forward Looking Statements:

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 related to the amendment of Resverlogix's debenture and the potential role of apabetalone in the treatment of patients with cardiovascular disease, post COVID-19 conditions, pulmonary arterial hypertension, associated comorbidities, and other chronic 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.sedarplus.ca. 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.

For further information please contact:

Investor Relations
Email: ir@resverlogix.com
Phone: 403-254-9252
Or visit our website: www.resverlogix.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/216599

FAQ

What is the new maturity date for Resverlogix's (RVXCF) debenture with Hepalink?

The new maturity date for Resverlogix's debenture with Hepalink is May 13, 2026, following a two-year extension.

How has the interest rate changed for Resverlogix's (RVXCF) debenture?

The interest rate for Resverlogix's debenture has increased from 12% to 18% per annum, effective May 14, 2024.

When will Resverlogix (RVXCF) shareholders vote on the debenture amendments?

Resverlogix shareholders will vote on the debenture amendments at the annual and special meeting on July 31, 2024.

What major change has been made to Hepalink's rights in the Resverlogix (RVXCF) debenture?

Hepalink's conversion privileges have been eliminated in the amended Resverlogix debenture.