Bear/KOO

I didn’t take the time to locate and read the complete agreement rather accepting the information copied below from an article in the link (same NR as April 27/15 NR on RVX website) provided. I have highlighted in red a couple of important phrases. The first states that the agreement is for all RVX-208 indications. The second states the HL manufacture option to be for products comprising RVX-208. I read this paragraph as stating that HL is granted the distribution license for the territories and their price to obtain RVX-208 is the manufacture cost plus 10%. HL was also given an option to manufacture and supply products comprising RVX-208 (I read this as they can buy RVX-208 and include it in composite products but not actually manufacture RVX-208 itself) outside the territories. That would not stop RVX from issuing a further license to manufacture RVX-208 itself in the future. This would leave it open for RVX to negotiate with multiple parties for RVX-208 manufacture outside the territories and not have handed over too much control of RVX-208 to HL as of yet. Ambiguity in the NR makes it hard to determine exactly what they are saying as a further statement alludes to RVX being able to select a third party if HL’s quality is not up to standard which would seem to say they already can manufacture outside the territories. This would cause one to think that they can already manufacture within the territories. Without reading the whole agreement, there is a lot of confusion here. Hopefully, it is clear in the complete agreement. Maybe there is something in the complete agreement that is contrary to this but this is the info. contained in this article. I don’t think you have mis-interpreted anything Bear. This is just a very poorly written NR. One sentence says one thing and the next appears to contradict it. If anyone has the original agreement, I would appreciate if you would send it to me personally.

“CALGARY, April 27, 2015 /CNW/ - Resverlogix Corp. ("Resverlogix" or the "Company") (TSX: RVX) today announced that it  has entered into a Framework Agreement which sets forth the principal business terms for an equity investment and a license of RVX-208, for all indications, to Shenzhen Hepalink Pharmaceutical Co., Ltd. ("Hepalink") for China, Hong Kong, Taiwan and Macau (the "Territories").”

https://www.prnewswire.com/news-releases/resverlogix-and-china-based-shenzhen-hepalink-pharmaceutical-co-ltd-announce-a-combination-licensing-and-equity-arrangement-501401941.html

“Under the agreement between Resverlogix and Hepalink, Hepalink's price shall be the manufacturing cost plus 10%. Resverlogix also granted Hepalink an option to manufacture and supply products comprising RVX-208 outside the Territories. Resverlogix's price will be the manufacturing cost plus 10%. Resverlogix has the right to select a qualified third party to manufacture RVX-208 outside the Territories if Hepalink fails to meet the industry standards required.”