Got to thinking about this debt that so many think is a big burden. I'm going to share my thoughts and would welcome anyone's realistic ideas. 

KD though Eastern Capital is securing the 68.8 million of debt through an LOC (letter of credit). This security is not cash but some form of an asset to secure a reasonably small amount of debt in billionaire terms. This small amount of relative debt could be increased somewhat, say to $117 million and still be relatively small in billionaire terms.

Why would KD want to do this. He, through Eastern has somewhere around $120+\- million tied up in this company, RVX, in one way or another. Adding a little more asset to secure a little more debt to support a $120 million investment seems to me to be a responsible thing to do, especially if there is a positive FA. 

What would happen if no one else stepped up to the plate at this point (by 28 Aug)? RVX may be forced into bankruptcy. Let's follow that path a little. Bankruptcy in Canada for corporations is a process called CCAA. This can take up to a couple of years to work through but generally not less than a year. The first thing that would happen would be a stop of BETonMACE so that any cash is conserved and to let all non essential staff go (all of the scientists), if there is no trials going on you don't need the staff. Now while all this is going on the patent life is continuing to deplete as this clock never stops. KD through Eastern also owns about 38% of Zenith Capital which owns the royalty on RVX208 which has a never stopping clock on a limited time royalty. From memory the royalty is somewhere around 12% of annual sales over $3 billion(?). The estimated annual sales of this drug is somewhere in the $15 to $20 billion range somewhere around 2028. Letting RVX go into CCAA at this point could possibly cost KD through Eastern somewhere around $700 million a year for up to 3 years (just over $2 billion) assuming someone could reassemble the team.

Although it is possible that the loan won't be regigged I don't believe that it is even mildly plausible if there is any chance of a positive FA.

Would like to see your thoughts.

tada

dyodd