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

To: Tom Johnson who wrote (12067)	2/4/2003 1:06:46 AM
From: axial	Read Replies (1) \| Respond to of 14101

Hi, Tom - I won't get into the numbers; that's something that Wolf does better than anyone else. But I think it's clear that RK is defying gravity, somehow. I was virtually certain that Acqua was still at work, last month: turned out not to be the case. She's keeping the lights on at Markham, and nobody is quite sure how. I believe we are seeing RK's "creative financing" at work. There's a certain group of posters on SH that like to maintain a constant state of paranoia around DMX's affairs. There's almost no point in responding to them, because the same issue will return, in slightly altered form, a month or two later. Posts on DMX's imminent demise have been arriving for 6 months, now. It is manifestly true that DMX appears to be out of money. It's equally true that everything is running, and the lights are still on. I take this as a sign of a resourceful and independent CEO who has evolved a successful interim financing strategy. Others treat it as impending doom. You takes yer choice, I guess. Regards, Jim

To: Tom Johnson who wrote (12067)	2/4/2003 8:38:32 PM
From: Montana Wildhack	Read Replies (2) \| Respond to of 14101

Hi Tom, As I posted on January 9, that was the period when it was a Holmes mystery where the missing money was which I pegged then at $1.714 million US to January 01. Message 18425318 The solution to the mystery was the loan against the Markham property for $1.3 million US. And although she appeared to use only an average of $628k a month in cash over the first 6 months - we are not far from the estimate: $1,714 - 1,300 = 414K missing versus: $628k for Dec less $34k cash on hand = $594k missing In my opinion then as at January 31 there is approximately $1,222 US in interim financing of some type which will become evident on the Feb 28 statements. The rights offering in my opinion is the correct strategy at this time. There isn't much question about getting the RO approved since its normal course of business and there's nothing unusual about it. Since this is DMX we did it in a somewhat unusual way though. DMX announced the intention then set the price, and then proceeded to obtain approval it appears. She may have done this to let shareholders know she had a financing strategy and to let them realize there would be no more Acqua draws. In some ways this is the cart before the horse and I suspect she was seriously considering another option until shortly before the RO intention was announced. This rights offering has to be approved by at least 10 seperate jurisdictions and while it takes the same amount of time either way - this way the shareholders have to wait until all jurisdictions are covered in the blanket circular that will be mailed. For those that think there is some message in the price I put it to you that currently there is a contingency on the stock that it may be diluted by 25%. Follow this math and see if the stock is higher or lower. The shares were trading at $2.85 roughly when this was announced. Diluting that by 25% gives you $2.14. However at $2.11 the rights are worth $.0275 making the package worth $2.1375. Only now have we come to the equivalence of the $2.85. There is a material potential turbocharge on any good news that might come our way such as Canadian final approval and the expected launch date. That charge is at the ratio of 125%. That is for every (or any) $1 in stock rise holders on the date of record will be making $1.25. In the opinion of the brokers and investment bankers I talked to if the stock is trading at a reasonable premium to the exercise price most of the offering will be taken. A reasonable premium was considered anything north of $2.50 or 25% above the exercise price. That there is no activity at the moment, and in the very small volumes there is some erosion, can be covered by small investors getting nervous. As with other situations its easy to view things the way you want. I think Rebecca announced it when she decided to do it - not when she was ready to proceed. Wolf