Nuvo announces warrant incentive program



    
    /THIS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER THE
    UNITED STATES WIRE SERVICES/
    

    MISSISSAUGA, ON, Jan. 6 /CNW/ - Nuvo Research Inc. (TSX: NRI), a Canadian
drug development company focused on the research and development of drug
products delivered to and through the skin using its topical and transdermal
drug delivery technologies, announced today that the Toronto Stock Exchange
("TSX") has approved a warrant incentive program designed to encourage the
early exercise of 20,012,494 warrants (the "November 2009 Warrants"),
3,901,898 warrants (the "June 2009 Warrants") and 50,000,000 warrants (the
"July 2009 Warrants").
    To the extent that holders of the warrants take advantage of the
opportunity, the early exercise of the warrants will provide Nuvo with
additional capital to continue to execute its current business plan. The
proceeds of the early exercise will fund capital requirements relating to the
development and commercialization of Nuvo's pharmaceutical products, primarily
its Pennsaid(R) and Pennsaid Plus(R) products, and for working capital and
other corporate purposes.
    The November 2009 Warrants were issued as part of a financing completed
in November 2004 and can be exercised at $0.48 until November 16, 2009.
    The June 2009 Warrants were issued as part of a financing completed in
June 2006 and can be exercised at $0.50 until June 20, 2009.
    The July 2009 Warrants were issued as part of a financing completed in
July 2007 and can be exercised at $0.30 until July 13, 2009.
    In order to encourage the early exercise of the warrants, Nuvo is
amending the November 2009 Warrants, the June 2009 Warrants and the July 2009
Warrants, respectively, so that upon payment of the applicable reduced
exercise price of $0.125 (which represents the volume weighted average trading
price of Nuvo common shares over the last five days) and surrender of the
holder's warrant in accordance with applicable procedures, the holder will be
entitled to receive one common share of Nuvo.
    Nuvo is providing the holders of November 2009 Warrants, June 2009
Warrants and July 2009 Warrants an exercise period commencing on January 21,
2009 and ending at 5:00 p.m. (Toronto time) on April 3, 2009 to exercise their
warrants under the offer. If a holder does not exercise his or her warrants
prior to April 3, 2009, the warrants will continue to be exercisable for
common shares of Nuvo on the same terms as previously existed.
    Insiders will not be eligible to participate in the warrant incentive
program.
    The gross proceeds to Nuvo if all the November 2009 Warrants are
exchanged is $2.5 million. The gross proceeds to Nuvo if all the June 2009
Warrants are exchanged is $0.5 million. The gross proceeds to Nuvo if all the
July 2009 Warrants are exchanged is $6.2 million.

    About Nuvo Research Inc.

    Nuvo is focused on the research and development of drug products
delivered to and through the skin using its topical and transdermal drug
delivery technologies. Nuvo's lead product is Pennsaid(R), a topical
non-steroidal anti-inflammatory (NSAID) used for the treatment of
osteoarthritis. Nuvo intends to leverage its skin-penetrating technologies to
create a portfolio of topical and transdermal products targeting a variety of
indications.
    Nuvo Research Inc. is a publicly traded, Canadian pharmaceutical company
headquartered in Mississauga, Ontario, with manufacturing facilities in
Varennes, Québec and Wanzleben, Germany and a research and development center
in San Diego, California. For more information, please visit
www.nuvoresearch.com.

    These forward-looking statements, by their nature, necessarily involve
risks and uncertainties that could cause actual results to differ materially
from those contemplated by the forward-looking statements. Nuvo considers the
assumptions on which these forward-looking statements are based to be
reasonable at the time they were prepared, but caution that these assumptions
regarding the future events, many of which are beyond the control of Nuvo and
its subsidiaries, may ultimately prove to be incorrect.
    Factors and risks, which could cause actual results to differ materially
from current expectations, are discussed in the annual reports, as well as in
Nuvo's Annual Information Forms for the year ended December 31, 2007. Nuvo
disclaims any intention or obligation to update or revise any forward-looking
statements whether a result of new information, future events, or except as
required by law. For additional information on risks and uncertainties
relating to these forward-looking statements, investors should consult Nuvo's
ongoing quarterly filings, annual reports and Annual Information Forms and
other filings found on SEDAR at www.sedar.com.





For further information:

For further information: Adam Peeler, Media and Investor Relations, The
Equicom Group Inc., Tel: (416) 815-0700 x225, email: apeeler@equicomgroup.com

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