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RESOLUTE ONCOLOGY INC

US:REON
No current share price held for this company.

Past year: ▲ 450%(3.00c – 16.5c USD)

Market cap
—
Shares on issue
—
Story beats
6 since 2013
Last event
30 June 2014

History

A former mineral exploration shell turned to cancer drugs in Germany in 2013, but its planned sale to Update Pharma collapsed in 2014 and it stopped SEC reporting.

2013: From exploration shell to cancer drugs

Resolute Oncology Inc, a Nevada company formerly named Atlas Resources and then Pequot Resources, began as a mineral exploration business and still held the Portage Bay claim in Ontario. It took its new name in January 2013 and did a 5.5-for-1 forward share split in early February. On February 4 it closed a private placement of 2,870,000 shares at $0.50, raising $1,435,000 before costs and diluting existing holders. A further 116,000 shares were placed at the same price in March.

The company had earlier planned a deal with GEN BioPharma, but that was abandoned and the $1,434,405 it had advanced was written off as an expense. On May 8 it instead bought Resolute Oncology GmbH in Germany from Oncocorp GmbH for €500,000 in cash, paid in installments, plus 1,000,000 shares valued at $0.50. It also took an option to buy the German marketing authorization (the licence to sell) for the cancer drug Paclitaxel OC for €150,000, and agreed that Oncocorp would receive 25% of gross profits from supplying it. Afterwards there were 41,386,000 shares outstanding. Two cash installments were deferred by verbal agreement, and €250,000 had been paid by the latest update.

2013-2014: Merger plans fall away

On September 9, 2013 the company signed a binding term sheet with Update Pharma Inc. for a merger that would leave Update holders with 70% and existing holders with 30%. No definitive agreement was signed. On October 15 that was replaced by a new term sheet: the company would sell its European operations to Update for 2,500,000 restricted Update shares, with closing dependent on financing.

On March 26, 2014, Update gave written notice that this term sheet was terminated, and no replacement deal was described. The company's next strategy was unstated, and the status of the remaining Oncocorp installments and the option was unknown. On June 30, 2014 the company suspended its duty to file periodic reports with the SEC.

Written from the 6 story beats below (2013 to 30 June 2014), which come from the company's own announcements and filings.

Beat by beat

The events that changed the company's story, in plain English, each written against everything known about the company at the time. The dot shows whether it was good, bad or neutral for shareholders.

shares on issue market cap (log scale)

201441.6m shares · US$3.3m market cap

  1. 30 June

    RESOLUTE ONCOLOGY INC suspended its duty to file periodic reports with the SEC.

    listing compliance notice

    41.6m shUS$3.3m
  2. 2 Apr

    On March 26, 2014 the company received written notice from Update Pharma that the October 2013 term sheet was terminated. That ends the planned sale of the European operations (Resolute Oncology Limited and GmbH) for Update shares, and no replacement deal is described.

    material agreement

    41.6m shUS$5.4m

201341.6m shares · US$29.1m market cap

  1. 21 Oct

    On October 15, 2013 the company replaced the September merger term sheet with Update Pharma with a new one: it would assign its European operations (Resolute Oncology Limited and Resolute Oncology GmbH) to Update in an asset purchase for 2,500,000 restricted Update shares. Update would take the name Resolute Oncology Inc. and the company would take a new name. A definitive agreement was due within 45 days, and closing depended on financing.

    material agreement termination

    41.6m shUS$29.1m
  2. 10 Sept

    On September 9, 2013 the company signed a binding term sheet with Update Pharma Inc. for a possible merger in which Update holders would own 70% and existing holders 30%, with existing shareholders reduced by 70%. It was subject to due diligence, cancellation of the Sorby shares, conversion of notes, financing and other conditions, and no definitive agreement had been signed.

    material agreement

    41.4m shUS$21.1m
  3. 21 Aug

    On May 8, 2013 the company, formerly a mineral exploration shell, bought Resolute Oncology GmbH (Germany) from Oncocorp GmbH for €500,000 in cash payable in installments plus 1,000,000 shares valued at $0.50. It also took an option to buy the German marketing authorization for the cancer drug Paclitaxel OC for €150,000 and signed a supply deal giving Oncocorp 25% of gross profits. The filing says the earlier planned deal with GEN BioPharma was abandoned and $1,434,405 advanced to it was written off as an expense. After the deal there were 41,386,000 shares outstanding. Two of the cash installments had been deferred by verbal agreement.

    business combination

    41.4m shUS$41.8m
  4. 7 Feb

    On February 4, 2013 the company closed a private placement of 2,870,000 shares at $0.50 each, raising $1,435,000 gross, from six non-U.S. persons and five U.S. persons. Existing shareholders are diluted by the new shares, and the company has new cash.

    capital raising announcement

    37.4m sh