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Gold/Mining/Energy : Nuvo Research Inc -- Ignore unavailable to you. Want to Upgrade?

To: john.d who wrote (8395)	1/9/2002 8:46:27 PM
From: Montana Wildhack	Read Replies (2) \| Respond to of 14101

Hi John, As we talked last time that 2.5 million was used largely to pay for plant modifications. Including the steady placements todate there should be just enough there for February quarter end. However I'll bet some million US is being spent right away to finish the analysis of the completed phase III for WF10. Additionally now that the terms of the acquisiton are firm, she must prepare to absorb the OXO operating expenses from the effective date which I believe could be as early as 3 months from now (effectively if not formally). If she has one or more of the FDA forms in her hands then she will need to go to town between now and May to ensure she can't be caught in a cash squeeze before completing the distance to the J&J money (successful inspection). Another consideration is liquidity. There aren't many shares in the float and "that newsletter" talked about interest from some US investment banks which probably ties into all those trips to New York. I agree generally with di7026 on SH that the secondary on NASDAQ will be in the 5 million share range (at a minimum) and I suspect the target price is closer to $10 US than $10 Cdn. With these considerations and in light of the OXO deal structure DMX is going to be knee deep in cash without a target (like another Cdn biotech we know). In summary, with the resiliance of the stock in the face of three consecutive placements it makes sense to get ahead on the expanded expense base so close to the goal line especially considering their need to expand liquidity. ...... Assorted: I'm using 55 million shares outstanding for 2003 earnings calculations. 1% of the market is 120,000,000 Cdn in gross sales. There seemed to be a negative energy field around 5.60 today. Wolf PS - If you put them outside, remember to tag them first for identification purposes.