CALGARY, Alberta, Sept. 27, 2019 (GLOBE NEWSWIRE) -- Resverlogix Corp. (“Resverlogix” or the "Company") (TSX: RVX) today announces that it has issued a 10% secured convertible debenture in the principal amount of US$12 million (the “Debenture”) to a wholly-owned subsidiary of ORI Star Fund LP (“ORI” or the “Fund”). The Debenture bears interest at a rate of 10% per annum and matures on September 26, 2020. The Fund may elect to convert the Debenture into common shares of the Company at a conversion price equal to the lesser of CAD$2.54 per share and the 5-day volume weighted average trading price of the common shares on the date of conversion. The Company granted the Fund a security interest in all of its assets, including its patents and other intellectual property, as security for its obligations under the Debenture. In addition, the Fund received 600,000 common share purchase warrants exercisable until December 31, 2023 at a price of CAD$2.54 per share.

The net proceeds from the issuance of the Debenture were used to repay in full the Company’s senior secured term loan with Third Eye Capital, as agent for a syndicate of lenders.

In connection with the Debenture transaction, ORI is entitled to nominate a director to the Company’s Board of Directors.

About ORI Star Fund

ORI Star Fund is a global healthcare investor focused on investing in innovative companies with disruptive technologies. The General Partner of the Fund is founded by Ms. Simone (Hong Fang) Song, former investment banker and head of China Healthcare at Goldman Sachs.

About Resverlogix

Resverlogix is developing apabetalone (RVX-208), a first-in-class, small molecule that is a selective BET (bromodomain and extra-terminal) inhibitor. BET inhibition is an epigenetic mechanism that can regulate disease-causing genes. Apabetalone is a BET inhibitor selective for the second bromodomain (BD2) within the BET proteins. This selective inhibition of apabetalone on BD2 produces a specific set of biological effects with potentially important benefits for patients with high-risk cardiovascular disease, diabetes mellitus, chronic kidney disease, end-stage renal disease treated with hemodialysis, neurodegenerative disease, Fabry disease, peripheral artery disease and other orphan diseases, while maintaining a well described safety profile.

Resverlogix common shares trade on the Toronto Stock Exchange (TSX:RVX).

Follow us on:

• Twitter: @Resverlogix_RVX
• LinkedIn: https://www.linkedin.com/company/resverlogix-corp-/

For further information please contact:

Investor Relations
Email: ir@resverlogix.com
Phone: 403-254-9252
Or visit our website: www.resverlogix.com

This news release may contain certain forward-looking information as defined under applicable Canadian securities legislation, that are not based on historical fact, including without limitation statements containing the words "believes", "anticipates", "plans", "intends", "will", "should", "expects", "continue", "estimate", "forecasts" and other similar expressions. In particular, this news release includes forward looking information relating to the potential role of apabetalone in the treatment of high-risk cardiovascular disease, diabetes mellitus, chronic kidney disease, end-stage renal disease treated with hemodialysis, neurodegenerative disease, Fabry disease, peripheral artery disease and other orphan diseases. Our actual results, events or developments could be materially different from those expressed or implied by these forward-looking statements. We can give no assurance that any of the events or expectations will occur or be realized. By their nature, forward-looking statements are subject to numerous assumptions and risk factors including those discussed in our Annual Information Form and most recent MD&A which are incorporated herein by reference and are available through SEDAR at www.sedar.com. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement and are made as of the date hereof. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.