A few thoughts
posted on
Feb 28, 2016 03:50PM
I have just been catching up on some of the postings on the forum and have a few thoughts.
1) A few people have expressed concerns that insiders have not been buying shares. While it always nice to see insiders buying lets not forget that in June '14 directors and officers bought over a million shares in a private placement and I haven't made note of any of them selling those shares. I believe DM paid about $600,000 for his part of the purchase.
2) With respect to the LoC coming due in 2017; one thing that has not been discussed is term extension of the LoC. Now that we have two deep pocketed investors that can easily provide the necessary guarantee I don't think we are going to see Resverlogix being held hostage to the expiration of term. The reason I think this is because with the guarantee comes IP and tax pool collateral and I think that both Eastern and Hepalink see value in these and, additionally, neither would want to see their respective equity position in RVX excessively diluted for providing guarantees or by an unfavourable, dilutive deal to pay off the loan. If I had to bet I would say that if the SP remains low that Eastern will likely renew their guarantee of RVX's loan for another term in exchange for more warrants. Obviously jmo but it does seem like the the least dilutive option and is in everyone's best interest, save perhaps somewhat the interests of the guarantor.
3)Like everyone here I hope we get some real meat in the next update. Sadly I agree with those feeling that management has once again MISERABLY failed at provideing a cohesive message to spark the interest of the investing public. Hopefully real, hard timelines for some of these other indications might do part of the job. To me some real hope for CKD would be extremely valuable as it is one of the heavier burdens for healthcare systems once dialysis and transplant enter the discussion and the projected growth of CKD is actually quite staggering. Obviously if RVX can show a threat to Soliris in PNH then it becomes a big threat to Alexion which has very deep pockets and is no stranger to Multi-billion dollar aquisitions. Hopefully the time will soon be upon us for management to exit their slumber and start devising strategies to capitalize on RVX's position from a SP perspective.