Nuvo enters into a bought deal agreement for gross proceeds of $20 million


    MISSISSAUGA, ON, June 22 /CNW/ - Nuvo Research Inc. (TSX:NRI) has today
entered into an agreement with a syndicate of underwriters co-led by Westwind
Partners Inc. and Dundee Securities Corporation (the "Underwriters") under
which the Underwriters have agreed to buy 100,000,000 units (the "Units") from
Nuvo on a bought-deal basis and sell them to the public at a price of
$0.20 per Unit, subject to the fulfillment of certain conditions. The Company
has also granted to the Underwriters an over-allotment option to purchase an
additional 15,000,000 Units at the same price, exercisable by the
Underwriters. Each Unit consists of one common share of Nuvo and one-half of
one warrant, each whole warrant being exercisable to acquire an additional
common share of Nuvo at a price of $0.30 per share for 24 months.
    The gross proceeds raised from the offering will be $20,000,000
($23,000,000 if the over-allotment option is exercised). The offering is
subject to the approval of the TSX. The Units will be offered in Canada by
short form prospectus, and in such other jurisdictions, including the United
States and in those jurisdictions outside of Canada which are agreed to by the
Company and the Underwriters, where the Units can be issued on a private
placement basis, exempt from any prospectus, registration or other similar
requirements. The offering is expected to close on or about July 12, 2007.
    Nuvo intends to use the net proceeds of the offering to fund studies
required to support Nuvo's resubmission of its application for Pennsaid(R)
approval by the U.S. FDA, the ongoing development of its pipeline products,
including Pennsaid Plus(TM), and for working capital and other corporate

    The securities offered have not been registered under the U.S. Securities
Act of 1933, as amended, and may not be offered or sold in the United States
absent registration or an applicable exemption from the registration
requirements. This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the securities
in any State in which such offer, solicitation or sale would be unlawful.

    About Nuvo Research Inc.

    Nuvo is focused on developing innovative site-specific therapeutics that
are delivered topically using the Company's skin-penetrating 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 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. For more information, please visit

    This release may contain forward-looking statements, subject to risks and
uncertainties beyond management's control. Actual results could differ
materially from those expressed here. Risk factors are discussed in the
Company's annual information form filed with the securities commissions in
each of the provinces of Canada. The Company undertakes no obligation to
revise forward-looking statements in light of future events.

For further information:

For further information: Investor Relations: Christina Bessant, Equicom
Group Inc., (416) 815-0700 x269,

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