Reading JJ's post got me on a line of thought I had some time ago - The disparity in financial reporting between RVX and ZE - another reason  for RVX's depressed market value.

The Royalty Preferred Shares - all 75,202,620 were issued 6/30/13 and are owned by Zenith. The shares will pay a 6-12% dividend on net APO revenues, if any.

Note 9 of the 1/30/15 F/S stated: 

"As these preferred shares contain a nondiscretionary royalty dividend they represent a contractual obligation to deliver cash. IFRS requires that the substance of the instrument takes precedent over the legal form and thus the preferred share have been classified as  legal Liability."

All of the following #s were extracted from RVX's  financials which are presented in usd's

 Date            $  Value        Revenue Begins    Probability    Discount Rate    Shares Outstanding

10/31/18     90,100,000     2021-2023               42%               20.4%             75,200,000

04/30/18     54,000,000     2021-2023               35                  21.7                 Same...

01/31/18     49,100,000     2021-2023               35                  23.6                 ......

04/30/17     42,700,000     2021-2023               35                  23.4                 ......

04/30/16     34,200,000     2021-2023               35                  23.5                 ......

04/30/15     27,800,000     2021-2023               35                  24.2                 ......

04/30/14     34,000,000          2020                   35                  25.0                 ......

 Zenith's financial statements do not reflect this receivable - thus the disparity. I did contact the company back then and their response was that the new accounting revenue recognition principles preclude Zenith from booking the receivable until revenue recognition is a certainty,  although the liability had to be booked on RVX. A positive trial result will trigger both a significantly higher liability on RVX's books and revenue recognition by Zenith.

In the six months between 4/30/18 and 10/31/18, RVX's liability has increased ~ 40,000,000 due to just a 7% increase in the probability of a favorable outcome and still only at 42% 

The point is that RVX has a significant contractual liability to RPShareholders to share future revenues until other financial arrangements are made, if ever. 

Narmac - I'm sure you will agree - best wishes and please keep posting here - this one's for you

GLTA

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