Yeti

I went back to the Information Circular of 29 Apr 2013 Pg 14 and found these 2 paragraphs that helped me get a better grip on what management is now asking for. It is my interpretation of the below that RVX can “only” develop therapies that affect Apo A-1 and Zenith owns all other therapies. From my understanding, RVX has about 2500 molecules and Zenith has about 1500. If you put some math to that equation the way it is currently written, any Pharma that may be considering acquiring RVX may have looked at this and said this is  exposing us to potentially a $625,000,000 bill (2500 X $250,000). At the request of another party RVX may be cleaning things up for current or future negotiations. Sarah’s comments seem to only reflect the current 7 compounds under development at this time regarding the $2,000,000 and not the full property portfolio that is covered under this agreement.

Newco was incorporated for the purposes of participating in the Arrangement and acquiring the Therapeutics Shares and has not carried on any active business other than in connection with the Arrangement and related matters and as discussed in this Information Circular. Pursuant to the Plan of Arrangement, Resverlogix will transfer the Therapeutics Assets to Newco on the Effective Date. Through the Resverlogix Royalty Preferred Shares held by Newco upon completion of the Arrangement, Newco will be entitled to dividends based on a percentage of Net Apo Revenue, if any.

Upon completion of the Arrangement, Newco, through its wholly-owned subsidiary Therapeutics, will have an epigenetic platform technology useful for the discovery of novel treatments for human diseases. Through licenses of patents and patent applications from Resverlogix, Therapeutics will be permitted to develop compounds covered by such licensed patents and patent applications for applications other than indications involving an increase in Apo A-1. New compounds arising from Therapeutics’ epigenetic drug discovery platform function by inhibiting BET bromodomains and have the potential to impact multiple diseases, including cancer, autoimmune, cardiovascular, neurodegenerative disorders and metabolic abnormalities.

I am definitely not a lawyer so don’t take my word for this. SanFran may want to put his two cents worth in on my interpretation.

Based on the above there is no question in my mind that the proposed changes are definately in favor of the RVX Shareholders and the ability of the company to negociate on our behalf. There is no question there is a benefit for Zenith but a potential $625,000,000 bill would certainly deter me from stepping up to the table.

Not investment advice, do your own DD.

tada