Noxopharm Ltd V.NOX

Chat with Robert Wares

[MrMonk]

Spoke with Bob Wares via phone earlier tonight.  I can't get into nitty-gritty details, but the NioGold deal with Oban was mainly "forced" by Wexford Capital (high-level: Wexfod owned around 19% of the float - needed to sell their NioGold shares to raise capital, which led to the Oban deal).  This Oban deal was in the best interest of NioGold shareholders in light of the Wexford situation, and Oban stepped up to the plate with a fair and reasonable offer (also happened that the deal made a lot of sense for Oban; note that Bob Wares is on their board and owns Oban shares).

The key takeaway from the discussion with Bob was that if you still believe in Marban, then hold your NioGold shares and let them convert to Oban shares.  Oban actually offers comparable upside to what we had with NioGold - they still have the Marban project (which they will continue to develop, even with the current dismal gold price; they will focus on adding ounces) plus they have other promising projects and more to come.  We get to have our cake and eat it too - we get a good entry price on Oban, Marban is still very much in play, we get other Oban projects as well, and the situation has actually been de-risked (Niogold will likely have been out of cash by late this year, after the PEA; Oban has plenty of cash in the till, and the management team to execute its strategy).  The argument can easily be made that holding NioGold shares was substantially more risky than holding Oban shares.

If you still see the potential in Marban and like the people backing Oban, hold on for a future cash-out.  If the new reality isn't sitting well with you, take your chips off the table.  Simple as that.

- MM