RVX Ownership Feb 19, 2023

I decided to remind myself about who controls RVX in terms of share ownership. Nothing-new here, just a refresher for me. I do not know who has purchased the exempt distributions; therefore, they have been placed in the “All Other” category. I believe that since Eastern owns more than 10% of RVX they would have had to declare additional purchases.

Hope I got the calcs correct but feel free to slap me down if you see errors.

The source of the float size was Yahoo, Dec 11, 2022. Share ownership sourced from a Mar 2022 update. This includes the recent exempt distribution reported by Koo.

Comments

1.     Hepalink and ORI combined control 38.2%. Conversion of the debenture will increase this significantly (ref – thanks Koo).

2.     The total Chinese connection, if there is one, control 43.2% of RVX.

3.     Other members in the “top 10 club” control an additional 21.5% of RVX.

4.     All other shareholders account for 35.3% of RVX ownership.

In the approximate 8 months since the AGM share ownership has been diluted by 7.9%. Great value creation Don.  J

Based on Koo’s posts I’ve listed the dates for many of the exempt distributions.

1.     Don was the 4th largest buyer, raising $125,000.

2.     The 10mm plus purchase on June 30th suggests some sort of vote of confidence in the company, particularly with warrants to June 30, 2027. Could this purchase been within the top 10 group or is it new or an existing shareholder increasing his/her position?

3.     Warrants expire roughly either in June 2025 or out to Oct 2028, so, lots of time to wait before expected value creation.

It appears to me that Don’s strength, if he has one, is the ability to continue to drum up shareholders that are willing to speculate at very low share prices with the potential of a double payback with cheap warrants. This is anything but value creating for existing shareholders. I sure wonder what he is telling these investors.

Some General Comments & Observations

1.     I was very excited about the foray into Covid. How on earth could the entire journey have been botched so badly? If it wasn’t so Kafka(esk) it would be the Three Stooges. Absolutely ridiculous – June 2020, RVX plans Covid clinical trial program launch, Mar 2021 – new evidence of benefits of apabetalone on Covid, Mar 2021 – apabetalone prevents Covid infection in human lung cells, Mar 2021 – benefits of Apabetalone published in prestigious journal, Apr 2021 – Health Canada issues authorization to begin immediate clinical studies of apabetalone for Covid, June 2021 – RVX partnership with Eversana, Nov 2021 – RVX in active discussions with Kingdom of Morocco re Covid, Feb 2022 – RVX expands ph2b trial for Covid in Brazil & Canada.

2.     So with hiring Eversana the VP of Business Development was let go. Now they have no Eversana and no VP Bus Dev.

3.     Bet-on-Mace results announced Sept 2019 AND FDA Break Though Therapy designation announced Feb 3, 2020 and absolutely not an ounce of progress or value creation has been achieved. Almost unbelievable!

4.     Why is the BOD not doing the obvious job that needs to get done?

5.     There are numerous trials on other indications that should be proceeding yet no progress is being made.

What Needs to Happen

·       This company requires an innovative, enthused and energetic management team with the best biotech credentials in the business.

·       This company requires a financial guru, an innovator that can create solutions and break the apparent log jam in moving BOM2 and numerous other trials forward.

·       The company must replace Don as CEO ASAP.

Head Scratcher

Why has ZCC been so successful in creating business partnerships with BP and RVX completely failed? Is it the garden that Julie Charrington began planting before she was dismissed? Is it the autonomy provided by the physical distance to San Fran? Is it Dr Lakhotia and his steady management in building relationships? Is it cancer? Is it zen3694?

So, just for fun, a final fun thought. I hope that Don’s $100,000 salary at ZCC is the fee paid for his brief visits to the SF offices for a coffee on his regular communtes to Hawaii. That way his damage will be minimal.

You’ve got to have a laugh every once in a while. As others have said, you can’t make this stuff up.

GLTA

Toinv