Koo, just my opinion but the response you are likely to receive is that Zenith is lending funds to RVX to protect it's investment (RVX royalty preferreds), as it still believes in the potential of that investment. Zenith Capital Corp., as the name suggests, is probably in it's charter deemed an investment corporation and as such can make loans and investments as part of its normal course of business. No special board permissions required. Zenith right now holds two investments the RVX royalty preferreds and Zenith Epigentics. 

Reading some of the posts it seems that perhaps some are missing Don's preferred path and that is to sell to a third party a royalty on Zen3694 for upfront cash (similar to the way Royalty Pharma PLC bought its royalty on Humira). Royalties are a favourable investment to many who want to be in the pharma space but not be in at least the early stages of drug development. That's why he has targeted the Middle Eastern funds hopefully amongst others. He then plans to take that money and channel it into RVX.

Hopefully if it is in the form of a loan then Zenith will get at least RVX warrants comensurate to what other RVX lenders have received. IMO at that point it will not be good enough just to say "we are lending to protect our investment and just the loan is sufficient".  If that was the case why is he himself getting warrants each time he loans one of the companies cash, to me the precedent has been set. 

Others have suggested and the slide posted by Chigacoest also suggests that the sale of Zen3694 might also be a possibility. I think this would be an excellent idea as I think Don has forgotten he is (allegedly) running a biotech that should be focused on drug development, where all the skill in these companies is, not turning into some mini pharma which IMO he is, again, totally unqualified for. Around RVX it all sounds really good until someone has to complete, stress complete, the work. Regarding pricing of Zenith as a late ph 2 cancer asset (with numerous opportunities) there seems to be plenty of examples of billion dollar plus price tags for this stage. Trilliums as a a late ph 2 company sold for over $2B to Phizer. Trillium however had a very sharp and accomplished CEO who knew how to get what their lead drug was worth. 

Hopefully something gets rolling fairly soon. Looking at some of Zenith's trials they are single arm, Don says they are going well so data should be easily attainable for marketing purposes I would think but I could be wrong.

sorry for the long post