What's going on, eh??Since RVX's near-death experience on November 17, 2010, the company has issued exactly two non-housekeeping press releases, the patent application for RVX208 and statins and the RVX208 - Alzheimer's press release. Q1 has come and gone and we're almost two-thirds of the way through H1. As of January 31, RVX had about $8 million in the bank and was still spending $1.5 million per month. If that is still accurate then RVX will have just over $3 million left by the end of April. The company has not filed a short form prospectus that is required to draw down on the SEDA. Without special permission from Yorkville Associates, the SEDA drawdown cannot average more than, maybe, $800,000 per month due to the drawdown pricing terms and other time-sensitive terms. That's obviously not enough to cover the monthly nut.
So what is going on?
I would expect that RVX knows or will know soon what the ASSURE plans and details are. These would be required in order to convince anybody to invest in a financing. The plans will need to be made public before RVX can tell prospective financiers the details. But financings take some time. If RVX doesn't get the ASSURE plans developed by, say, mid or late May, then it would be doubtful whether RVX can get ASSURE going in early Q3 because the financing couldn't be completed in time.
On the other hand...
The complete silence can also be a marker for a deal of some sort. Make no mistake that I'm stopping short of real speculation about this and I am absolutely not trying to start a rumour. In fact, I have heard absolutely nothing. But that is precisely the point. Silence of this type very often ends with surprise. The recent very confirming work announced by others regarding the benefits of HDL with respect to CVD, inflammation and Alzheimer's coupled with a non-hysterical positive look at the ASSERT results suggest to me that RVX's potential value is explosive and that others could very well be taking a hard look. I'm not saying it's so but that could explain the silence, the absolute stone-cold silence. There's a chance that we're going to get more than a simple financing and ASSURE storyline here.