MISSISSAUGA, ON, Sept. 18 /CNW/ - Nuvo Research Inc. (TSX: NRI) (the
"Company"), 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, today announced that the
outstanding convertible, unsecured debentures (the "Debentures") issued in
November 2004 have been amended pursuant to a written resolution signed by
holders of over two thirds of their outstanding principal amount. The
amendments, which affect all of the outstanding Debentures, were previously
announced by the Company in an August 1, 2008 press release and proposed to
Debenture holders shortly thereafter.
The amended terms extend the maturity date of the Debentures by one year
from November 16, 2009 to November 16, 2010. The Debentures, which have a
total principal amount outstanding of $4.136 million, pay interest at a rate
of 5.0% per annum and were originally convertible into Nuvo common shares at a
price of $0.30 per share (except for certain Debentures held by directors and
officers of Nuvo, which were convertible at a price of $0.39 per share).
In consideration for the holders of the Debentures agreeing to the
extended maturity date, the conversion price of the Debentures has been
reduced to $0.138, which is the five-day volume-weighted average trading price
of the Nuvo common shares as of the date of the announcement of the offer to
Debenture holders on August 1, 2008.
"The amendments to the convertible debentures allow us to conserve our
cash resources as we move toward Pennsaid's anticipated approval by the FDA,
consummation of a U.S. licensing agreement and the commercialization of
Pennsaid in the U.S.," stated Jim Moulds, Nuvo's Chief Financial Officer.
"Under their original terms, the debentures would have matured and required
repayment, if not converted, shortly after the date by which we expect to
receive the U.S. FDA's response to our application for Pennsaid approval. The
amendments provide an effective, low-cost means of extending our financial
runway during this critical period."
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
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
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. The Company
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 the Company 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 the
Company's Annual Information Form for the year ended December 31, 2007. The
Company 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 the Company'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: about Nuvo, please contact: Investor Relations,
Adam Peeler, Equicom Group Inc., Tel: (416) 815-0700 x225, email: