Resverlogix has been on a tear this summer. My last blog post prior to this write up noted that shares of RVX.TO had climbed 120% from May 31st to the end June. (Blog Post Linked Below)
The climb upwards continued through July, but at a slower pace. After closing the month of June at a PPS of $2.46 July ended with a more modest gain, ending at $2.56 for a 4% increase.
August however has started with a big bang, with the PPS now sitting at $3.23 for a jump of over 26% in just three days of trading. The catalyst almost certainly was news that came out July 31st after the closing bell. (PR Linked Below)
Of note in that PR is that Resverlogix has engaged Rothschild & Co as its financial advisor in its efforts to pursue a U.S. listing.
I'm a suspicious cat at the best of times, and I quickly did some digging to see if this Rothschild & Co had any link to the famous (and for some infamous) Rothschild family. From everything I've read and researched it does. The chairman of the company is one Alexandre de Rothschild
Based on Wikipedia, (not the best source I know, but not the worst either) it would appear that Alexandre de Rothschild is the son of Baron David René James de Rothschild, a member of the French branch of the Rothschild family.
Suffice to say, when it comes to 'old money' families, you don't get any bigger than the Rothschilds, not even close. How an obscure Canadian development stage biotech that trades at penny stock levels, (less than $5) managed to engage a company like Rothschild & Co is a question very much worth asking in my opinion.
When looking over news items involving this French financial advisory group, I don't see any stories, (aside from the Resverlogix news) about them being engaged with little Canadian companies. Instead the stories are about: (News Stories Linked)
- Meetings with world government leaders.
- A reprimand given to them and other major financial firms like JP Morgan over a Malaysian state investment fund.
- A business deal between Johnson & Johnson and Eusa Pharma
- An award for 'Ultra High Net Worth Asset Manager of the Year' for one of Rothschild's team, among other awards.
It certainly has the wheels of this bleacher bum, retail shareholder spinning. It has me thinking that my opinions of lead compound Apabetalone's potential might be entirely justified.
I have long considered Resverlogix to be grossly undervalued, even at its current market capitalization of ~$440 million USD. Given Apabetalone's potential for multiple indications including Diabetes, Chronic Kidney Disease, Alzheimer's, Fabry's, FSHD...and a myriad of other targets related to arterial conditions, I think a valuation in the billions of USD is more than realistic.
One reason for the depressed share price is likely the lack of a listing on a US exchange like the Nasdaq. Because Resverlogix does not have an American listing it trades OTC in the United States. A listing on a US exchange would go a long way to garnering the company significant exposure in my opinion. And having Rothschild & Co acting as an advisor certainly helps in that regard as evidenced by the trading since that news hit the wire.
A share consolidation may be required to meet listing requirements for an exchange like the Nasdaq of course, but then again if the upward trajectory in the share price continues it may not be needed at all.
ONE FINAL NOTE
As well as shares of RVX have been performing, the share purchase warrants which trade on the TSX under the symbol RVX.WT have been doing even better. As per the chart below, while RVX shares are up over 152% in just the past 3 months, the RVX.WT share purchase warrants are up over 176%.
For those unfamiliar with warrants I wrote a blog piece on them back in December of 2017 linked below:
Disclaimer
That's enough for now. Please note that I am a shareholder (both shares and warrants) and as such my opinions should be considered as having bias. I wrote this blog post myself and have received nothing in compensation for the expression of my views. This blog is for informational and entertainment purposes only, I am not a registered investment advisor. Please verify any and all information contained herein, while I believe I have accurately represented any factual data presented I make no warranties for completeness or accuracy.
Happy investing.
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