Mazola

I guess I am not on the same page with everyone else on this issue.

I do know this:

Zenith was allocated a cost basis of .091 of your original RVX purchase price for tax purposes at the spinoff. Presently Zenith is not marketable and is listed at $0 value in my brokerage account. There was and may still be an offer for investors to purchase Zenith at $1 per share, minimum block of 100k shares(private equity placement).

As far as Zenith's marketable value, it had a $5,341,000 US deficit at 4/30/15. Note that all #s are in US Dollars.

"As at April 30, 2015, the Company had $0.06 million of cash and is committed to pay $2.3 million of trade and other payables, $0.2 million of promissory notes, $2.0 million due to related parties and $1.7 million for research and development commitments and $0.4 million of lease obligations over the next twelve months as described further in Note 21 “Commitments”. As described in Note 24 “Subsequent events”, subsequent to April 30, 2015 the Company closed a private placement of 4.0 million common shares at a price of $1.00 per share for gross proceeds of $4.0 million, and another private placement of 0.3 million common shares at a price of $1.00 per share for gross proceeds of $0.3 million. The Company’s cash, including the proceeds from the private placement closed subsequent to April 30, 2015, is not sufficient to fund the Company’s contractual commitments over the next year and is not sufficient to fund all of the Company’s planned business operations over the next year. The Company will have to raise additional capital. If the Company is not able to raise capital, the Company would have to reduce its cash requirements by eliminating or deferring spending on research, development and corporate activities. These conditions result in a material uncertainty which may cast significant doubt on the Company’s ability to continue as a going concern. In addition, the Company will require additional capital to fund its planned research, development and corporate activities."

"Management’s estimate of the fair value of the Company’s common shares was $0.41 per share as at April 30, 2014 and $0.21 per share as at April 30, 2015. As at April 30, 2015 the fair value reflected management’s estimate of various probabilities of future equity offerings at various prices at or below $1 per share within the respective prescribed timeframes. Management’s underlying assumptions included in the estimates of the fair value of the anti-dilution and transaction rights as at April 30, 2015 were otherwise materially unchanged."

One interesting thing I picked up in the Zenith footnotes and the RVX financial statements. RVX has booked a liability for $30,100,000 for Royalty Preferred shares as at 7/31/15. However, Zenith has not recorded the asset. This is an inconsistency in the reporting between the 2 cos. The following reason was given in Zenith's report:

"The royalty preferred shares have not been recognized because book value accounting has been applied to the assets that have been acquired through the distribution in connection with the Arrangement and they were not previously recognized in Resverlogix’s financial statements. The Company will recognize a royalty receivable when royalties are reasonably determinable and the economic benefits are probable to flow to the Company. "

Needless to say, RVX needs to get approval and on the market

Chicagoest