Resverlogix pays off 60% of outstanding debt

Resverlogix, a Canadian biopharmaceutical firm focused on developing novel therapies for unmet medical markets, primarily cardiovascular disease, cancer and fibrotic conditions, has redeemed $10.0 million or around 60% of its remaining $17.3 million debenture.

Donald McCaffrey, chief executive, said: "this action limits our dilution on set terms that protect shareholders value and it enhances our flexibility to proceed with our ongoing scientific and business development plans. The $10.0 million redemption will consist of 2.4 million common shares with a value of $5.5 million and $4.5 million cash. Under the terms of the amendment, the conversion price has been changed to a five-day volume weighted average price of $3.07 less 15% in exchange for debenture holders agreeing to restrict any put options until March 31, 2009. Along with the removal of certain future dilution factors, the company has also gained the option to buy out any remaining debenture at a 25% premium."