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RVX Price Decline Unjustified?Nice to see the work done by Bear and San Fran on the Zacks piece...on Agoracom! The scientist and the lawyer...what a great combo! :>) “RVX Price Decline Unjustified”...hope those words came from McCaffrey’s lips! I too have been watching to see when Hepalink resumes trading...the longer it takes, the more “suspicious” I get! Especially if they are looking to grab the rights for ZEN-3694! Seeing the patent work took longer, did it throw off their schedule? Are they waiting for Zenith to announce some results? Then again, the Chinese do things differently...so it could have nothing at all to do with RVX or Zenith, but definitely worth watching! Also, still wondering what handful of companies (a Canadian Public Biotech Company) could qualify for that Bloom Burton M&A advisory work in January 2016. Notice that the company was never identified, so I assume no deal materialized. Or was it related to Zenith? Zenith Epigenetics Corp. Announces Name Change and Internal Corporate Reorganization CALGARY, Aug. 2, 2016 /CNW/ - Zenith Epigenetics Corp. ("Zenith" or the "Company") announced today that it has changed its name to Zenith Capital Corp. concurrent with the internal corporate reorganization which the Company has determined will be effective on August 1, 2016. The name change and reorganization were approved by shareholders at the annual and special meeting of shareholders held on January 7, 2016. The reorganization results in the transfer of the Company's principal operating assets to Zenith Epigenetics Ltd., a wholly-owned subsidiary of Zenith Capital Corp., in exchange for additional common shares of Zenith Epigenetics Ltd. Zenith Capital Corp. retains its investment in the royalty preferred shares of Resverlogix Corp. As Zenith Capital Corp. owns all of the securities of Zenith Epigenetics Ltd., there is no immediate change in the ultimate beneficial ownership of the operating assets. http://www.newswire.ca/news-releases/zenith-epigenetics-corp-announces-name-change-and-internal-corporate-reorganization-588934671.html ================= Canadian Public Biotech Company MERGER & ACQUISITION ADVISORY, JANUARY 2016 https://www.bloomburton.com/our-services/mergers-acquisition-advisory/ ================== Zacks Small-Cap Research June 14, 2017 John D. Vandermosten, CFA 312-265-9588 / jvandermosten@zacks.com RVX Price Decline Unjustified; Reiterate $6.50 Price Target and Highlight 3x Upside ================== https://agoracom.com/ir/Resverlogix/forums/discussion/topics/691906-zacks-scr-report-6-14-17/messages/2155738#message BearDownAZ Rank: President Zacks SCR Report 6/14/17 posted on Jun 15, 2017 04:38PM New Zacks SCR Report 6/14/17. It basically reiterates the one from March 27, 2017. However, there were statements in there about the recent $10 million overnight marketed equity offering and also about the current debt balance. "Resverlogix to Raise CAD$10 Million Gross On June 9th, Resverlogix announced that it had confirmed CAD$10 million in demand for equity shares in an overnight offering marketed to Canadian investors. We anticipate the final details regarding net proceeds and shares issued will be available in the next week or two. The CAD$10 million capital raise should be sufficient to provide the flexibility to negotiate a larger licensing or first right of refusal deal that will support clinical trials and operations until a new drug application can be submitted to the FDA, which we anticipate occurring in 2019. Based on our conversations with management and the limited level of capital targeted in last week s announcement, we anticipate that a larger deal is close at hand which will provide enough cash to fund the $2.0 to $2.5 million per month in anticipated cash burn." and later states: "The company currently holds approximately $50 million of debt on its balance sheet. This represents a loan agreement with Citibank which is repayable upon maturity on August 28, 2017. Management is currently in discussions with lenders to extend or replace the loan. We believe that current talks regarding a capital raise include some type of replacement of this arrangement that will be more favorable to a development stage company." 4 Recommendations ======================= https://agoracom.com/ir/Resverlogix/forums/discussion/topics/691906-zacks-scr-report-6-14-17/messages/2155751#message SanFrancisco99 Rank: President Re: Zacks SCR Report 6/14/17 in response to Zacks SCR Report 6/14/17 by BearDownAZ posted on Jun 15, 2017 06:35PM Ok. I've had my daily nap and so am fresh and have had a little time to mull over the Zacks wording, which is find very, very odd. Here is the quote from Bear and with the passages I find odd bolded (I've also added numbers in paranthesis as reference points to the comments included below): ---------------------------------------------------- On June 9th, Resverlogix announced that it had confirmed CAD$10 million in demand for equity shares in an overnight offering marketed to Canadian investors. We anticipate the final details regarding net proceeds and shares issued will be available in the next week or two. The CAD$10 million capital raise (1) should be sufficient to provide the flexibility to negotiate a larger licensing or first right of refusal deal that will support clinical trials and operations (2) until a new drug application can be submitted to the FDA, which we anticipate occurring in 2019. (3a) Based on our conversations with management and the limited level of capital targeted in last week s announcement, (3b) we anticipate that a larger deal is close at hand which will provide enough cash to fund the $2.0 to $2.5 million per month in anticipated cash burn." and later states: "The company currently holds approximately $50 million of debt on its balance sheet. This represents a loan agreement with Citibank which is repayable upon maturity on August 28, 2017. Management is currently in discussions with lenders to (4a) extend or replace the loan. We believe that current talks regarding a capital raise include (4b) some type of replacement of this arrangement that will be more favorable to a development stage company." ------------------------------------- Here are my comments referencing the numbers in paranthesis above: (1) Larger licensing or right or first right of refusal deal? Larger than what? Are they comparing it to another deal that has been supplanted by a better one? I also find it interesting that they are very specific about what type of deal it might be - licensing or first right of refusal. All very odd. (2) until a new drug application can be submitted to the FDA??? Why do they only have to support clinical operations until a new drug application can be submitted to the FDA? Wouldn't that require more funds? What does a new drug application have to do with any of this? (3a) I guess the leaker has been named, sort of like Jim Comey did when he mentioned himself as the source of a leak. (3b) We anticipate that a larger deal is close at hand: Looks like the leaker is nothing other than pretty thoroughly descriptive. This says a lot. (4a) Extend or replacement (4b) Now they are only talking about replacement Conclusions Sounds like there is a "larger" deal coming soon. Either a license or a right of first refusal. And there is also a loan replacement coming too. Makes me think the larger deal doesn't retire the loan entirely.... All very interesting. Seems like "management" has chirped a bit to Zacks, no? If so, I'm sort of glad they did. Leaks seem to be very in vogue in the USA, so why not in Calgary too, Eh? SF 1 Recommendations |
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