Resverlogix is finalizing a $30 million senior secured loan with Third Eye Capital acting as agent for a syndicate of lenders.
The loan will have a term of 12 months, will be repayable in part or in whole at any time, will require payment of commitment and exit fees totaling $1.5 million and will bear interest at 10% per annum, payable monthly in cash.
The loan will be secured by a security interest in all of the company’s assets, including its patents and other intellectual property. The lenders will receive 3,500,000 common share purchase warrants exercisable for a term of three years at a price of $1.40 per share. Closing is scheduled to occur imminently and is subject only to satisfaction of certain customary closing conditions.
Arif N. Bhalwani, Third Eye Capital’s CEO and managing director, commented, “We are very pleased to partner with Resverlogix, providing capital to support its continued development including the BETonMACE trial.”
The net proceeds of the loan will be used to fund research and development activities, including but not limited to, clinical trial activities related to the Phase 3 BETonMACE trial, general and administrative expenses, working capital needs and other general corporate purposes.
Resverlogix is developing apabetalone, a first-in-class, small molecule that is a selective bromodomain and extra-terminal inhibitor.
