Restructure allows new scientific and business development flexibility
TSX Exchange Symbol: RVX
CALGARY, Oct. 15 /PRNewswire-FirstCall/ - Resverlogix Corp. ("Resverlogix") (TSX:RVX) announced today that it has redeemed USD$10 million or approximately 60% of its remaining USD$17.3 million debenture.
Donald McCaffrey, President and CEO of Resverlogix stated, "The
economic environment remains very volatile and challenging for companies
around the globe. This action limits our dilution on set terms that protect
shareholders value and it enhances our flexibility to proceed with our
ongoing scientific and business development plans. The US $10 million
redemption will consist of 2.4 million common shares with a value of US
$5.5 million and US $4.5 million cash. Under the terms of the amendment,
the conversion price has been amended to a five day volume weighted average
price of $3.07 less 15% in exchange for debenture holders agreeing to
restrict any put options until March 31, 2009. Along with the removal of
future certain dilution factors the Company has also gained the option to
buy out any remaining debenture at a 25% premium."
The following are key terms of the restructured convertible debenture:
- In addition to the March 31, 2009 restriction on the put option, the
ability to put to the Company in common shares has been waived by the
- The remaining principal balance of $278,000 carrying a 15% interest
rate from the January 2007 convertible debenture has been reduced to
12% and rolled into the remaining convertible debt instrument.
- Mandatory conversion of the entire debt at the Company's option at
$5.22, subject to certain trading conditions being met.
- The 1,467,349 outstanding warrants have been repriced to $3.07.
To assist shareholders with understanding the salient and beneficial
points to this amendment Resverlogix will post k
|SOURCE Resverlogix Corp.|
Copyright©2008 PR Newswire.
All rights reserved