-- Nuvo shareholders to receive shares of both companies -- One company would be a profitable and growing commercial business -- One company would be a biotech company focused on drug development
MISSISSAUGA, ON, Sept. 15, 2015 /CNW/ - Nuvo Research Inc. (TSX:NRI) (Nuvo or the Company), a specialty pharmaceutical company with growing revenues and a diverse portfolio of topical and immunology products, today announced that it plans to split Nuvo into two separate, publicly traded companies. This strategy is intended to enhance long-term value for Nuvo shareholders.
If completed, the proposed transaction is expected to have the following benefits:
-- Creates a pure-play commercial healthcare company with growing revenue, significant EBITDA and significant EBITDA growth potential - to be owned 100% by Nuvo shareholders -- Creates a pure-play biotech development company with a deep pipeline of product candidates and significant capital - also to be owned 100% by Nuvo shareholders -- Both companies will be distinct and separately traded public companies -- Nuvo shareholders to receive shares of both companies -- Substantial, existing cash balance puts both companies in a strong position for growth -- Provides a better mechanism for shareholders to measure the performance of the distinct, separate businesses