Toinv

Currently the US federal corporate tax rate is 21% thanks to President Trump and his quest to make America great again. If RVX was a US domestic C corp., the  $476.3 MM deficit would be worth $100.02 MM as an NOL carryforward (net operating loss carryforward) US domestic C corporations can carryforward losses indefinately and apply the losses against taxable income - a nice benefit for the acquiring company or the developing corp once it becomes profitable.

Another US benefit is the increasing research tax credit which is a $ for $ credit against US tax for the credit. In the case of RVX, the credit could be as high as 14% of qualified research expenses - presumably, most of RVX's expenses would qualify and yield a credit against US tax of ~ $50MM USD.

If RVX was acquired by a US BP, both of these benefits could be available depending on US/Canadien treaties and the US tax status of the acquiring Company - it gets complicated but is a consideration  in all US M&As of foreign corps.

One of my US clients was recently purchased by a US BP which was able to utilize both of these tax benefits. Both companies were US domestic corps. My familiarity with Canadien tax law is limited.

Chicagoest