I haven't had a chance to read today's posts but what a day in trading.

Here are my thoughts for what they are worth re the USA intent to list.

USA Stock Listing Intent Notice. This is getting very exciting indeed. I’ve been very critical of the company over the years about the lack of a NASDAQ listing (I’m assuming the intended listing would be on the NASDAQ) because I feel this little company has so much great science to offer and it is getting no recognition in Canada. Afterall, who holds the shares – Hepalink – 43% (China), Eastern Capital – 13% (Caymans), NGN Capital 5% (USA/global), Efung – 1.7% (China), CD Venture – 2.3% (EU). That is 65% ownership outside of Canada and that is the minimum because we don’t know the origins of most of the other shareholders. 

I argued previously that the company required greater access & breadth to investor markets and particularly to markets where the base of risk takers (and associated $) is much larger than in Canada. I also posted with great frustration about the lack of liquidity of Zenith shares and Don’s statements of the potential Zenith takeover of a distressed company that already owns a NASDAQ listing. So with this announcement re RVX the company has at least made a formal statement of intent. This renews my faith in management to some extent. If successful this is huge from my perspective!

It also suggests that management is now becoming mature and seasoned enough to involve high quality advisors.

We’ll see just how far this statement of intent drives up the share price and as each day ticks toward the next DSMB and possible SSRA the momentum will be positively enhanced I believe.

So we know the “what” (the intent) but we don’t know the why (which may seem completely obvious to most people but I need to think it through).

Regarding consolidation of shares the current float is roughly 175 million (not sure if this is fully diluted or not). So 65% of the 175 mm is about 114 mm shares and in the Bio CEO 2018 presentation on p4 it states the floating shares are about 54 mm. Tada, I believe your estimate is significantly lower at around 20 mm trading shares. If I got your number right Tada I tend to believe your 20 mm number of actively traded shares based on the current range of share prices. The trading base could increase or decrease based on new information. It is impossible to really know. But if we start at 20 mm shares a 2 to 1 consolidation would leave only 10 mm trading shares (obviously based on static assumptions). This is not many shares when moving into a market with at least 10 times the investors and a much higher level of risk takers and the end of a phase 3 trial. They will swallow this up and want more. I’m not selling mine to them at any price. I’m here until this plays out. 

One observation (that is probably obvious to all) is that even with all of the LOIs that Don stated are being looked at, at this stage the company seems to be moving forward on their own for now 

I believe that the 3rd Eye funding can carry RVX until the top line results are available (just 5 months or so). Therefore management is prudent in not waiting to the last minute to secure funding to carry on business until possibly 2021/2022 or until a significant offer comes along.

This chess game is getting very exciting. Don must be kicking back with a smile studying his sequence of chess plays to play. I guess a very significant feeling I’m getting is that there seems to be a fundamental shift at RVX from 18 months of Don trying to cover his back side into a “we are in control mode and we now are close enough to achieve new financings at much higher price per share (hence less dilution) levels than just a few months ago”. Yes, there will be some dilution but not like the last Hepalink dilution (of course this brings up the Hepalink dominance at 43% and now Don has some power to put things somewhat back in balance).

A sequence of positive events such as the next DSMB, a positive SSRA, further independent research papers and new independent analyst coverage (they may start noticing now since the USA listing intent is announced), etc should drive interest and possibly share price.

Building Brand Equity (BBE) (finally)

Brand Awareness

From GAC notes from B & B May 03, 2018 09:30PM

Another snippet was that 'we've been quiet, but we're not going to be quiet much longer (Don)'....I won't attach too much significance to that utterance, it could be seen as a simple effort to generate a sense of urgency, and my take on the attendees is that its a pretty savvy group.  

Hiring Paul Moon as the new VP of IR is a signal that the IR function is critical at this stage. Based on a quick check of linked in he doesn’t have a pharma background (perhaps I missed it) but he has a business degree from Western’s Ivey Business School.

A USA listing announcement (if/when complete) will generate immediate attention and brand awareness in that market and this will lead to attention from analysts. This investment market is at least 10 times the Canadian market and more risk tolerant

Brand Uniqueness

Apebetalone is the only phase 3 epigenetic drug in trials for CVD and DM and other indications like Fabry, dimensia, renal issues, etc.

Apabetalone is directed at the 70% of CVD patients with unmet needs. It is not an improvement on an existing drug.

It is administered orally.

The apabetalone MOA is completely unique. It works via selective BET inhibition.

Differentiation

Apabetalone is directed at low HDL patients with CVD and DM.

Apabetalone boosts apoA-l.

Quality

Strong safety profile to date.

Six successful DSMB reports and the 7th to come soon.

Relevance

CVD is a leading and growing cause of heart attacks, strokes and death and it is growing in many countries including Asian cultures as they adapt to the American style of diet.

Patients with DM (diabetes mellitus) tend to have a high rate of CVD and DM is a growing problem with increased obesity and poor eating habits.

Apabetalone is a unique, possibly breakthrough in health care, epigenetic molecule that inhibits select BET protein production and results in numerous impacts on systems such as complement biology, inflammation, production of apoA-l (good cholesterol), delayed glucose absorption, etc.

USA Listing

What I like about this is that it is a fundamental shift in the confidence for Don, the science team and management. Don is no longer on his hands and knee’s begging Eastern or Hepalink. True that RVX must pay off 3rd Eye Capital but the shift with this USA listing intent is very significant.

They now seem to have enough confidence in apabetalone and BoM that they can go to the USA market and get solid funding without ridiculous dilution and carry on this development including funding at least some of the other important trials and do it on their own. With each success will come less dilutive financings and/or a major deal or deals.

If a BP comes along looking for all or a part of RVX at least RVX is now (almost) in control and they will be in complete control with successful top lines on BoM.

I still believe that a successful BoM will represent breakthrough science.

Good luck to all.

Toinv