i agree with most of what DND and golfyeti have said regarding the altered RPS agreement. I think a fairer exchange for RVX shareholders could have been agreement to somewhat lower the sliding royalty rates when changing from a specified to a global royalty definition. Say, for example, changing the 6 to 12% scale to a 5 to 11% scale in exchange for the change of definition of a compound subject to royalty. That being said I think a global royalty makes everything much cleaner when dealing with a third party potentially wishing to purchase RVX. I think if RVX does not sell out but instead down the road becomes a licensor of a number of successful compounds then golfyeti is correct in his assessment that this could cost RVX 10's to 100's of millions of dollars in payments to Zenith Capital (I did some basic math in an earlier post). The upside of course would be that in this case RVX would be making billions. I still however agree that the deal is one sided. All JMO. On another note I saw on SH that someone said that every Zenith shareholder holds a royalty preferred share for each share of Zenith they hold. This is incorrect, ZCC holds all 75 million RPSs and any royalty due those shares will be paid to ZCC not to shareholders directly. Further, the company would then at its discretion choose or not choose to declare a dividend. Just for clarification, see the current MD&A, there are currently about 125 million shares of ZCC outstanding (about 135 million fully diluted).
