Resverlogix redeems C$10 million of its convertibles, amends terms

By Devika Patel

Knoxville, Tenn., Oct. 15 - Resverlogix Corp. announced it redeemed C$10 million, or about 60%, of its remaining C$17.3 million issued convertible debentures for C$5.5 million in shares and C$4.5 million in cash. The remaining debentures will be revised, the company said.

The company also said that the conversion price has been amended to a five day volume weighted average price of C$3.07, less 15%, in exchange for debenture holders agreeing to restrict any put options until March 31.

The remaining principal balance of C$278,000 carries a 12% interest rate, reduced from 15%.

The company may force conversion at C$5.22, subject to certain trading conditions being met.

The 1,467,349 outstanding warrants have been repriced to C$3.07.

Based in Calgary, Alta., Resverlogix is a biotechnology company focused on therapies for cardiovascular disease. The company's stock (Toronto: RVX) closed at C$3.40 on Oct. 14.

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