Initiating with CAD$5.00 Target: Successful BETonMACE Provides Material Upside

Current Price (6/28/2016) $1.15

Valuation $5.00

"Based on our DCF model and a 15% discount rate, RVX is valued at approximately CAD$5.00 per share. Our model applies a 64% probability of apabetalone sales for indications in the BETonMACE trial. Our valuation only includes BETonMACE indication contributions from the US, Europe, & Latin America, as well as royalties from the Hepalink arrangement. It does not recognize potential from orphan or renal indications......At the current price, we view Resverlogix shares as undervalued, and in a position to provide long-term upside potential. We initiate RVX at CAD$5.00 per share and believe that expansion into new geographies, the orphan disease program, and renal disease, could provide further upside to our valuation."