Silicon Investor (SI) -- The First Internet Community

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 -- Ignore unavailable to you. Want to Upgrade?

To: Montana Wildhack who wrote (7535)	7/23/2001 3:29:23 AM
From: Cal Gary	Respond to of 14101

Hi latenight Wolf, good to see I'm not the only night owl. But then again I'm in the deep west timezone. Granted, the 150 million valuation is based on interpolation of the money invested in the 20% shares. I won't go into the detail or history. IMO and only MO, terms to finance WF10 was made years ago. A budget was agreed to take it to completion of Phase III and I hope, beyond . I bet there were other milestone for putting up more money but 20/20 says they were very close with their estimates to spend $20mm usd. Obviously it took more, about $23mm usd to get to completion of Phase III and possibly a total of $25 - 28mm before FDA approval. IMO, 5 or more years ago, around 1996, they could not guess accurately the present value of OXO's market valuation in 2001/2 when phase III is in. Costs yes, market value nada. They probably could not even ascribe probabilities to account for risks of all kinds, inflation, and for success or failure of the various Phase I,II (a,b...), III, fast tracking, FDA approval, etc. Now that we know there are no other partners for OXO remaining shares, I bet Rebecca always had the "call " option to take out the remaining 80%, or portion of it based on milestones, for some prearranged premium. I doubt it would be $1mm usd for each 1% stake that was used for the first 20%. Remember the first $20mm was pure risk money, now payback time on the remaining 80%. Again, this is MO and extrapolated from new info based on the last NR. Patiently waiting for the Phase III results in the western suburbs of Canada.. PS Jean C., talking out of both sides of his political mouth. According to Jean, "Great to see the huge protest in Italy" but will squish any "violent" protest when its in Canada. NO WAY to hosting G8 Summit in the environmentally sensitive Rockies!!!

To: Montana Wildhack who wrote (7535)	7/23/2001 11:08:13 AM
From: Joe Krupa	Read Replies (1) \| Respond to of 14101

Hi Wolf, "What is clear to me is that Ms Keeler is either very confident that she can satisfy FDA requirements - or that she may have over reached." 100% Agreed. This whole deal hinges on Pennsaid getting FDA. As you say, without FDA the money to finance this deal in cash is not there. Period. As for a share swap, there is one reason the good doc will tender his Oxo shares for DMX shares - his combined investment in Pennsaid and WF10 is more lucrative than his 80% investment in WF10 alone. Without Pennsaid selling in the US, the swap simply does not bear fruit for him. Pennsaid selling all around the world is the obvious bone in any share transaction. Furthermore, implicit in any acceptance of a share swap, is an expression of Dr. K's confidence that there IS a big market for Pennsaid and that it will sell very successfully on approval. All the approvals in the world won't do a thing for Pennsaid's sales or Dimethaid's share price appreciation, if nobody wants to buy the goop. And if DMX's share price does not appreciate than taking DMX shares for Oxo would be suicide for Dr. K. I imagine he has a better idea than we do of how the goop is selling in the UK. Given the fact that Rebecca anticipates closing the deal in fQ2, I imagine this means she anticipates FDA approval this fall. As for the dilution everyone is fearing, I don't see that as an issue. Rebecca will not buy Oxo if the WF10 results are not there. That's a given. IMO, the asset value of acquiring Oxo will, in a very short period of time, well exceed the dilution. If the deal closes, I don't think the dilution will be a worry. joe