Resverlogix and Shenzhen Hepalink ink licensing and equity accord

Canadian clinical-stage biotech firm Resverlogix (TSX:RVX) has entered into a framework agreement which sets forth the principal business terms for an equity investment and a license to cardiovascular drug candidate RVX-208, for all indications, to Chinese firm Shenzhen Hepalink Pharmaceutical (002399. SZ) for Mainland China, Hong Kong, Taiwan and Macau. The completion of the transaction remains subject to execution of a definitive stock purchase agreement and license agreement.

Under the terms of the transaction, Hepalink will subscribe for 13,270,000 Resverlogix common shares and 1,000,000 common share purchase warrants, for aggregate proceeds of around C$35 million ($28.8 million), or C$2.67 per unit. Each warrant is exercisable into one common share at CAD$2.67 per share for a period of five years. After giving effect to the transaction, Hepalink will hold around12.69% of Resverlogix' common shares.

Eastern Capital could also gain 25.38% stake in Resverlogix