Thanks for that, Cal.
Am I paranoid or has the following NR got a decidedly Bushesk 'spin' to it?
1. A debenture is a loan not an investment.
2. Why did they not disclose the amount of "prepaid royalties" (at least that is the way they will be shown on the balance sheet).
3.The conversion price also is odd, why does it have to be at this "average"? You're required to do that when you issue options. Not when you issue convertible debt.
Overall: Good to see cash come in.
Question:
Is it good or bad for the stock price?
My rule of thumb is:
take the 'issue price' add 20% and you get what they think the 'retail' price of the stock is worth. That makes it 54cents.
Any comments? Fox.
today:
Nuvo sells additional Canadian Pennsaid(R) rights to Paladin subsidiary
MARKHAM, ON, Jan. 17 /CNW/ - Nuvo Research Inc. (TSX: NRI) and Paladin
Labs Inc. (TSX: PLB) today jointly announced that they have entered into an
agreement which expands their relationship with respect to the sale and
marketing of Pennsaid(R) in Canada. In August 2005, Squire Pharmaceuticals
Inc. (formerly Dimethaid Health Care Ltd.) was acquired by Paladin from Nuvo.
The terms of this expanded agreement include Squire making an up-front
payment, providing on-going royalties on the sale of Pennsaid(R) and making an
investment of $500,000 in Nuvo through a three-year debenture convertible into
Nuvo shares at a conversion price of $0.456, which is based on the ten-day
average closing price.
"We are pleased to broaden our relationship with Paladin, a company with
a proven ability to successfully build leading brands in Canada," said
John London, Nuvo's Vice Chairman. "This transaction provides non-dilutive
funding for our operations, including our drug development program, to
mid-2006 when we plan to submit our amended New Drug Application (NDA) for
Pennsaid(R) to the U.S. Food and Drug Administration (FDA)."
"Clinical data indicates that Pennsaid(R) is as effective as oral
diclofenac, considered the "gold standard" treatment for osteoarthritis, but
with significantly fewer adverse events. Providing safer and effective
alternatives like Pennsaid(R) to some of the four million Canadians living
with osteoarthritis, furthers Paladin's goal of improving the lives of
Canadians," said Jonathan Ross Goodman, President and CEO of Paladin. "We are
excited that we have been able to expand our rights to Pennsaid(R) and our
relationship with Nuvo." |
