Nuvo Pharmaceuticals Inc NRIFF

May 11th AGM - King West Hotel 9 am

[consultant99]

The relavent information was posted on Sedar today.

Of particular interest is the departure of Samira Sakhia as a director and the nomination of Robert Harris (Director of Aralez Pharma) as her replacement. I do not know anything about Robert and would be interested in the comments of others.

In addition the company is asking for approval to continue the Share Incentive Plan; a condition impossed by the TSE. If not approved the company will not be able to issue more incentive compensation in the form of options and shares of the corporation.

I am having a hard time swallowing the Performance Graph presented in the circular. It purports that based on an initial investment of $100 in Nuvo on January 1st 2011 that value would have grown to $222 by the close of business December 31st 2016. The assumption used is that on the first day of trading of Crescita shares they were sold and reinvested into Pharma shares - cute really as the vast majority of shareholders did not have the ability to do this (myself included). Nevertheless I still have a hard time believing the graph so I checked...

According to Stockwatch NRI close trading Jan 4th 2011 (the first trading day of 2011) at $0.15 or (0.15 x 65) = $9.75/share pre-RS. FYI the stock closed at $0.15 on Dec 31st 2010 as well.

Crescita started trading on Monday March 7th 2016 and closed the day at $1.60 per share. Pharma closed trading at $5.63/share on March 7th as well.

Pharma shares closed at $5.62/share on Dec 30th 2016 (the last day of trading for the year) according to Stockwatch. If an investor could have sold CTX at $1.60 to buy Pharma at $5.63 and excluding commissions they would have made no incremental money versus just selling their shares outright. So adding in $1.60 to the Dec 30th close of $5.62 we get $7.22/share

A $100 investment in NRI on Jan 4th 2011 (or Dec 31 2010) would have declined in value to $74.05 which is a far cry from the $222 represented in the graph.

Being a rather beaten up long-term investor, intuitively the graph seemed wrong; I never felt my share value had doubled. Now that I have gone through the numbers I am convinced the graph is wrong and by inference a misrepresentation of the company's relative performance - I'll leave it to others to check my math...