General

As per notes on Reseverlogix, same number of people in attendance. Again, these notes are not in any particular order.

Business Portion

Motion to amend Royalty Preferred Share agreement approved

Q&A Portion

There are at least 6 compounds that they could take to trials, but ZEN-3694 will be the one they will focus on to bring to clinical trials by end of year. They believe all have superior profiles to what competitors have right now. My take was that it focused in the oncology area and will be addressing solid tumors.

Lots of activity at Bio conference in Philadelphia last week. Immunotherapy is hot topic. Priming of immunotherapy is done throught BET inhibition, so they believe they are in a great spot to do combo trials with others in this space. Work together synergistically.

Have run 3694 in combination with about 30 other compounds and have found which work great, good and not so good. Now talking to major pharma companies about how to leverage this.

Hoping to list on NASDAQ by end of year, but would want to time it with some "major" event (eg partnering/co-developing with someone or licensing Zenith somewhere, eg China). This would be the signal that might make it happen, but right now they have enough funds (burn rate 500K/mo) to last them for a while. Don said they have great expectations for something to happen before end of year, especially given what they are learning about how their compounds work.

May split company into Royalty portion (getting royalties from Resverlogix) and a development company. This will likely be a topic at the AGM in Sep. If a major pharma comes in, he doesn't really want others to benefit from the royalty stream. Those that have shares in Zenith right now are the ones who should be the beneficiaries.

He believes this royalty stream will be a very significant number. For example, just from the China deal, there could be $300M in royalty stream. If things go as hoped in Resverlogix, this could be $1B/year. Divide that among the current shares outstanding (say 100M) and you've got a fair chunk of money coming your way every year. If I got $10/yr for every share I owned, I'd be a VERY happy camper. I can wait a few years for this to happen.

May also wind up spinning out other companies for different indications. Different types of bindings may happen in the BD1 and BD2 areas. This may have impacts on the auto-immune area.

Differences in covalent bindings, where lower dosages are needed when the molecule binds for the life of the molecule (3-4 days) are also looking really promising. They know they have a lot more to learn but again, they are way ahead of their competitors. I personally believe that the things they are finding on the Zenith side of things could be even more important (and lucrative) than what we see with RVX208.

Asset development is a big thing for them right now and as they learn more, I expect we'll see further announcements of compounds other than ZEN-3694.

Comments around going public. If they do, it WILL be on a US exchange. Don personally doesn't

Expects other non-dilutive ways of funding to happen in next few months. The $4M that they raised recently through private placements will be enough to get through Phase I.

Would not comment about Julie's departure. Don will continue to wear both Zenith and Resverlogix hats as CEO for the time being. If the right person came along, might change. his mind.

For those interested (and have extra cash), they are still allowing additional investments at $1 USD ($1.25 CAD), but this probably ends at the time of the AGM. Probably need at least $100K to make it worthwhile, but give Don a call if you're that rich.

Conclusion

I'm still very excited about the prospects this company has. As mentioned in my other comments, you need to be patient to ride this train. As most of us long time shareholders know, it's a long and winding road and some of the bumps along the way are doozies.

Do your own due diligence and GLTA.

See you at the AGM in September. I'm sure it will be interesting.

masila