Nuvo Pharmaceuticals Inc MRVFF

Market Cap - Too Low

[NoCentsay]

8 Million is way way too low for a comapny that just made 9 million this quarter, considering all factors. I would like to see a zero added on to that.

[runmyownlife]

.... And $14MM in cash and near cash.

[lscfa]

But enterprise value is $109  Million.... Long term debt $123 mil less working cap - $21 mil mkt cap $7.4 mil ($0.65 x 11.4 mil) = $109 mil

[NoCentsay]

 “If ifs and buts were candy and nuts, we’d all have a merry Christmas.” 

[daydream1]

Also, you have to be mindful that the presently traded share price is not just a reflection of the present financial book value only. It is the future value of the company that is reflected. If you look at all the patents from the Aralez acquisition you will notice that are only valid for 4 up to about 7 years, not mentioning  the recent loss of Vimovo rights. My opinion is the only investor

[ValueCap]

How is Deerfield going to benefit when their options are at 3.53/ share? They would get crushed if they executed now and further dilute the shares. Meanwhile the company pays down 10 million/ year of the debt making their pool of shares less and less.

[daydream1]

Regardless of the share price Deefield will get its money + interest back. Nuvo has to make mandatory quarterly loan payments equal to the greater of US$2.5 million and 50% of excess cash flow to Deefield to repay the senior secured loan. A higher share price is just gravy for Deefield. From Nuvo's website Financing: Deerfield has provided a binding commitment letter to Nuvo

[lscfa]

June 26 - Deerfield Financing Agreement Amendment As a result of the previously announced United States Court of Appeals decision related to the United States patents 6,926,907 and 8,557,285 covering VIMOVO (the '907 and '285 Patents), and the potential future financial implications thereof to Nuvo, Deerfield Management Company, L.P. (Deerfield) and certain of

[daydream1]

Ah yes the amedment: "The amount of any prepayment so deferred would, until repaid in accordance with the amendment, be subject to an interest rate of 12.5% per annum."  Still does not look good for any investors other than Deefiled. 

[ValueCap]

Right, they get below prime rate interest if they never get a chance to convert the sharesat a higher price. Opportunity cost lost to them if that’s all they get