Couple interesting tidbits from Financials
posted on
Jul 29, 2019 10:24PM
1. As per Note 11 -The Company is currently in discussions with Third Eye regarding the repayment and/or extension of the Third Eye Loan beyond August 4, 2019.
2. On October 23, 2017, the Company entered into a Right of First Refusal Agreement with Hepalink USA Inc. (Hepalink USA), a subsidiary of Shenzhen Hepalink Pharmaceutical Co., Ltd. ("Hepalink"). Under the Agreement, Hepalink USA was granted a right of first refusal in connection with the licensing of the right to develop, manufacture, and commercialize pharmaceutical products containing RVX-208 (apabetalone) in the United States until April 15, 2019. Hepalink USA paid CAD$8.0 million to Resverlogix in consideration for the right of first refusal granted (the “Fee”). Pursuant to the Agreement, if Resverlogix and Hepalink USA entered into a license agreement with respect to the US Licensing Rights, the Fee would have been credited against any payment obligations of Hepalink USA thereunder. Otherwise, the Fee was refundable, in whole or in part, until termination of the Agreement. The Unearned Licensing Rights Fee was recognized as a current liability from the commencement of the Agreement until the April 15, 2019 termination date (at which time it was no longer refundable), and at which time the Fee was considered earned, and recorded as other income
As per above, it appears to me if I am reading this properly that the licence rights no longer belong to Hepalink and RVX does not have to repay the $8mill. Now we know there is a strong relationship with Hepa so I am not sure it is not a wink wink deal at this point, but strange the fee is no longer repayable and Hepa does not appear to hold the licence rights anymore