Resverlogix Corp. plans to sell 60,416,667 equity units to shareholder Shenzhen Hepalink Pharmaceutical Co. Ltd. through a private placement.
This will raise the Shenzhen-listed company's stake in Resverlogix to 42.86% from 12.74%.
Toronto-listed Resverlogix plans to raise C$87 million in gross proceeds, pricing the equity units at C$1.44 apiece. Each unit will comprise 1 common share and 0.082759 of a common share purchase warrant. Each full warrant will be exercisable at a price of C$1.64 per share for a period of four years from the closing of the offering.
The net proceeds will be mainly used to repay loan and fund research and development activities.
The pharmaceutical company plans to file a financial hardship application to the Toronto Stock Exchange to get an exemption from shareholder approval for the placement.