Accumulated Debt

As per the MD & A Jan 31, 2019 the accumulated debt stands at $476.3 million (see below).

From my perspective this is a very clear testament to investor’s belief in epigenetic science and specifically the RVX BETi approaches and the clinical trial successes to date. This is also clear evidence of Don’s remarkable successes over the past 19 years of keeping the company alive.

Source - RVX Accumulated Deficit MD & A Jan 31 2019

1) P23 - We have a history of net losses and negative cash flow. We expect to continue to incur substantial net losses for the foreseeable future, and we may never achieve or maintain positive cash flow.

2) To date, we have not recorded any revenues from the sale of biopharmaceutical products, and have incurred significant negative cash flows in many periods since our inception. As at January 31, 2019, we had a deficit of US$476.3 million. We expect to incur substantial net losses and negative cash flow for the foreseeable future. Such losses and negative cash flow have had, and will continue to have, an adverse effect on our shareholders’ equity and working capital.

My question to the accounting types and others in the know is what value if any does this deficit have for a company looking at buying RVX totally or in part?

I seem to recall that this issue was discussed in depth back in the SH days but a refresher would be appreciated.

Don’s track record leaves me reassured that there will be no problem for Don to clear the balance of 3rd Eye by May 4th. In my opinion there is zero chance that Eastern, Hepalink or any other major investor will let the IP and company go to a vulture fund. But it does raise the question as to why these same investors did not step in last spring to before 3rd Eye with the funds to get BoM done without all of the hassle, stress and uncertainty created.

It will be an exciting 2 weeks and it is Easter this weekend – a time of rebirth.

Everyday inches us closer to top lines on BoM.

GLTA

Toinv