Eastern Capital backs increased debt financing of Resverlogix

Resverlogix Corp (TSX: RVX) has secured an additional $30 million under its loan agreement with Citibank NA, raising its total borrowing to $68.8 million. The increase was backed by investor Eastern Capital, to which Resverlogix will pledge security and issue share purchase warrants. Upon the deal's closing, Eastern Capital will hold up to 24.27 percent of the company's common shares. The Calgary-based clinical stage cardiovascular company will use net proceeds from the loan for clinical trials in targeted patient groups as well as research and development activities and other purposes. Resverlogix is also backed by U.S. venture capital firm NGN Capital.

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