The explanation seems reasonable to me and leaves me more inclined to vote in favour....but of course would be interested in reading the thoughts of others:

Hello:

The current agreements between Resverlogix and Zenith Epigenetics were developed prior to the detailed understanding of the current mechanism of action of our BET inhibitors.   Therefore an inherent uncertainty exists as too whether or not the effect(s) of treatment of a particular Resverlogix compound are due to a therapeutic relevant elevation in ApoA-I levels. 

This affects both the potential royalty stream for Zenith and the development capability and expense for Resverlogix.  To avoid this significant impediment to Resverlogix’s ability to develop its extensive compound library the agreement has been amended to benefit both companies equally. 

Resverlogix will have the freedom to develop all compounds for all indications without having to perform an ApoA-I confirmation study in each and every potential candidate or indication – at a cost of ~$250,000 per compound.  In return Zenith will receive a predetermined royalty on any compound that is developed.  All seven of our current lead compounds have been shown in assays to raise ApoA-I so they would have been required to pay a royalty regardless and the accompanying ApoA-I confirmation study would cost Resverlogix close to $2,000,000.  

Further, in the event of any future potential M&A transaction involving Zenith, this amended agreement will hold value for Zenith as the royalty holder and it will allow Resverlogix to proceed unimpeded with additional development candidates.

Best regards,

Sarah