Last updated on April 18, 2014 at 21:21 EDT

Resverlogix Secures Increase to Citibank Loan to $38.8 million

March 11, 2013

TSX Exchange Symbol: RVX

CALGARY, March 11, 2013 /PRNewswire/ – Resverlogix Corp. (TSX:RVX)
(“Resverlogix”) today announced that it has entered into an Amended and
Restated Loan Agreement with Citibank, N.A. (“Citibank”) increasing the
previously announced loan granted to Resverlogix by Citibank from $25
million to $38.8 million.. The loan is repayable upon maturity on
August 28, 2017 and may be repaid in whole or in part after August 27,
2013 without penalty. Interest on the loan is payable annually in
arrears at 4.5% per annum until August 27, 2013 and thereafter at a
rate equal to Canadian one-year LIBOR swap rate plus 3.14%, to be reset
annually. The loan is secured by an irrevocable $38.8 million Standby
Letter of Credit (the “Letter of Credit”) arranged by Eastern Capital
Limited (“Eastern”) which will be maintained until maturity of the

In connection with the Letter of Credit, Resverlogix has agreed to
indemnify Eastern for all liabilities, costs and expenses arising from
any payments made to Citibank under the Letter of Credit and
Resverlogix has pledged its issued patents and certain tax losses and
pools to Eastern as security for its obligations under the indemnity.
Resverlogix also issued an additional 728,640 share purchase warrants
to Eastern in connection with the loan increase and will pay a
guarantee fee to Eastern in the amount of 0.03% per annum on the
average daily aggregate principal amount of the issued and undrawn
Letter of Credit. Each warrant is exercisable at a price of $2.38 for a
period of five years. Eastern Capital holds 13,200,000 shares of
Resverlogix which represents 17.8% of the 74,225,183 common shares
outstanding before giving effect to any outstanding warrants.  After
giving effect to the transaction, assuming all warrants are exercised,
Eastern will hold 15,248,640 shares of Resverlogix representing 19.99%
of Resverlogix’s issued and outstanding common shares based on shares
outstanding as at today’s date. Resverlogix is exempted from formal
valuation and minority approval requirements of applicable securities
laws on the basis that neither the fair market value of, nor the fair
market value of the consideration for, the transaction, insofar as it
involves Eastern, exceeds 25% of Resverlogix’s market capitalization.

Resverlogix intends to use the net proceeds from the loan to fund
research and development activities, general and administrative
expenses, increased working capital and other general corporate
purposes.  The transaction was unanimously approved by Resverlogix’s
board of directors.

“We are pleased to expand our partnership with Citibank and Eastern on
this unique transaction that offers an attractive cost of capital and
freedom to repay the loan in whole or in part at any time after August
27, 2013 with minimal dilution,” stated Donald McCaffrey, President and
CEO of Resverlogix.

About Resverlogix Corp.

Resverlogix Corp. (TSX:RVX) is a clinical stage cardiovascular company
with an epigenetic platform technology that modulates protein
production. Resverlogix is developing RVX-208, a first-in-class small
molecule for the treatment of atherosclerosis. RVX-208 is the first BET
bromodomain inhibitor in clinical trials. New compounds arising from
Resverlogix’ epigenetic drug development platform function by
inhibiting BET bromodomains and have the potential to impact multiple
diseases including autoimmune diseases, cancer, neurodegenerative
diseases and diabetes mellitus. Resverlogix’s common shares trade on
the Toronto Stock Exchange (TSX: RVX). For further information please
visit www.resverlogix.com . Follow us on our blog at http://www.resverlogix.com/blog/.

This news release may contain certain forward-looking information as
defined under applicable Canadian securities legislation, that are not
based on historical fact, including without limitation statements
containing the words “believes”, “anticipates”, “plans”, “intends”,
“will”, “should”, “expects”, “continue”, “estimate”, “forecasts” and
other similar expressions. In particular, this news release includes
forward looking information relating to the use of proceeds of the
offering. Our actual results, events or developments could be
materially different from those expressed or implied by these
forward-looking statements. We can give no assurance that any of the
events or expectations will occur or be realized. By their nature,
forward-looking statements are subject to numerous assumptions and risk
factors including but not limited to those assumptions and risk factors
discussed in our Annual Information Form and most recent MD&A which are
incorporated herein by reference and other documents we file from time
to time with securities regulatory authorities, which are available
through SEDAR at www.sedar.com. The forward-looking statements contained in this news release are
expressly qualified by this cautionary statement and are made as of the
date hereof. We disclaim any intention and have no obligation or
responsibility, except as required by law, to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.

For further information, please contact:

    Company Contacts:                                                  

    Donald J. McCaffrey                                            Sarah Zapotichny
    President & CEO                                                Director of Investor Relations
    Resverlogix Corp.                                              Resverlogix Corp.
    Phone: 403-254-9252                                            Phone: 403-254-9252
    Email:                                                         Email:
    don@resverlogix.com   sarah@resverlogix.com

    Brad Cann
    Chief Financial Officer
    Resverlogix Corp.
    Phone: 403-254-9252

SOURCE Resverlogix Corp.

Source: PR Newswire