Resverlogix accepted a commitment letter for a $30 million senior secured loan with alternative lending firm Third Eye Capital acting as agent for a syndicate of lenders.
The loan will have a term of 12 months, be repayable in part or in whole at any time, require payment of commitment and exit fees totaling $1.5 million, and bear interest at 10% per annum, payable monthly in cash. The lenders will be entitled to receive 3,500,000 common share purchase warrants exercisable for a term of three years at a price of $1.77 per share, subject to regulatory approval.
Final details will be announced upon closing, which is anticipated to occur at the end of April 2018 but remains conditional upon certain final deliverables, including the execution of definitive loan and security documentation.
Resverlogix simultaneously closed private placements for gross proceeds totaling approximately $3.2 million, consisting of approximately 1,800,000 shares at a weighted-average price of $1.78 per share.
“This is a significant financing step for Resverlogix as we advance toward the completion of the critical Phase 3 BETonMACE trial. Trial results will provide major data sets on cardiovascular impact on diabetic patients, renal function and effects on chronic kidney disease patients as well as cognitive function effects in all patients over the age of 70,” said Donald J. McCaffrey, Resverlogix president and CEO.
Resverlogix is a late-stage clinical biotechnology company dedicated to improving and saving the lives of patients with high-risk cardiovascular disease, diabetes mellitus and chronic kidney disease.
