Nuvo Pharmaceuticals Inc NRIFF

RE:RE:RE:The Importance of Voting

[consultant99]

For what possible reason would the share price rise on the assumption that the company was going to split into two?

The cost of this split is heavy - $3 million in upfront fees and a significant amount of cash and/or shares to settle the outstanding executive compensation. Before these companies get off the ground shareholders will have taken a bath. The $35 million earmarked for DevCo will be discounted by 50% (per analyst) and the cash burn will be $1 million/month.

Would you buy shares in Crescita if you didn't already own them? The only thing that will keep that ship floating will be the vulture funds waiting to come in and buy your cash for pennies on the dollar.

So what about Nuvo Pharma? With only $5 - $10 million in cash is it going to start trading at a significant premium to cash to offset the upfront costs of the split and the likely fall in the price of Crescita.

More likely what we are seeing is the normal speculative rise in the share price when there is a clinical trial result expected.

One has to ask themselves the question - if a split can increase shareholder value so easily why are there are so many R & D companies that concurrently manufacture market and develop drugs? Simple answer is these companies are focused on what they do and create real value from those activities - not some backroom scheme.