In light of several anticipated developments, Canadian biotech company Resverlogix says it intends to pursue a listing of its common shares in the US.
Before the company can move forward, it must receive approval from shareholders for a consolidation of the company’s common shares to reach the minimum share price requirements.
The meeting will be held on September 12, 2018 and, if approved, the board will have the discretion to proceed with the share consolidation for a period of 12 months after the meeting.
Resverlogix would continue to be listed on the Toronto Stock Exchange, if the US listing is approved. Resverlogix didn’t disclose which US-listing where it intends to trade its common shares.
Donald McCaffrey, the company’s CEO and president, said initiating preparation for a US listing is in light of several anticipated developments, such as the completion of the BETonMACE trial near the end of 2018. The announcement of the results of the primary endpoint of the reduction of major adverse cardiac events (MACE) should be released soon after.
Resverlogix has begun working with Rothschild & Co. as its financial advisor to evaluate the potential of the US listing. The listing will be subject to the company meeting all stock exchange and US securities law requirements; as it currently stands, the company cannot guarantee that it will.
This late-stage company is focused on high-risk cardiovascular disease, diabetes mellitus and chronic kidney disease treatments. It received funding for its current BETonMACE trial back in May, which helped with the funding of the trial. The trial is in connection with Resverlogix product candidate, apabetalone.
Apabetalone is a selective BET inhibitor, the bromodomain inhibition, which is an epigenetic mechanism that can regulate disease-causing genes. It is also in development for other indications such as Fabry disease, Muscular dystrophy, and additional neuroinflammation.
Aside from this announcement, investors can look forward to seeing details from the company presenting at the Clinical Trials in Alzheimer’s Disease (CTAD) Asia conference in Shanghai on September 1, which includes an oral and poster presentation.
Over the trading day on Wednesday, Resverlogix share price increased 10.55 percent to C$2.83, which may show investor excitement for the potential of a US listing.
Keen investors can also look forward to hearing about the company’s presentations taking place in September at CTAD and data from the BETonMACE trial, which should be released soon after the trial is wrapped up near the end of 2018.
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Securities Disclosure: I, Gabrielle Lakusta, hold no direct investment interest in any company mentioned in this article.