Nuvo Research Inc Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Nuvo Research Inc

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Tom Johnson who wrote (6918)	3/11/2001 12:23:27 PM
From: Montana Wildhack	Read Replies (1) of 14101

Tom, It's nice to see some facts surrounding the FDA. Aside from the reality of actually now starting to sell Pennsaid, there's one other story I'm finding very interesting and that's following the cash. Whatever rumours people may be hearing, there are real events surrounding the cash that I feel sure are clues to what happens next. We've discussed this but briefly: Dimethaid apparently got Acqua to agree to buy $50 million worth of stock equivelant to about 13% of the company, with no real hope of selling them into an average 129,000 volume daily over the last 3 months. They got this based on UK, the european reciprical agreement and not having any cash left. Securing this slightly astonishing deal, they go ahead immediately and take less than 3 months cash needs. ...... There can be no doubt a european or US distribution deal must be signed within 90 days from March 31. Funds of this size are required to move ahead on more than 1 front. The math: Nov 00 burned 2.5 million and had 2.2 million left but with expenses increasing. So I will use 1 million a month average. Cash Nov 30 - 2.2 million UK upfront Cdn - 2.0 million Acqua financing - 2.5 million All cash 6.7 million Dec 1.0 Jan 1.0 Feb 1.0 Mar 1.0 Apr 1.0 May 1.0 Jun 1.0 Out of cash mid June. All cash used just to fund operations. Why not just go back to Acqua when you need more cash? That's playing russian roullette needlessly, and does not provide the funds to move on anything else. ..... Final conclusion: Rebecca knows she is very close to at least one of them to a confidence level that she doesn't want insurance. She wants to send the message. My prediction is a larger European deal by end April latest. The Acqua placement was a stake for Acqua who will play a larger role later in the year. Wolf PS - deal estimates Provalis paid less right up front but owes some milestones and DMX gets top premium 'royalty' (say 22%). Cash was 1 million sterling to get in and something further down the road. The European deal will be at a smaller premium (say 20%) but will see some 10 million euros up front (15 mill Cdn). We'll see.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next