Bullboard - Stock Discussion Forum Nuvo Pharmaceuticals Inc MRVFF

Healthcare Drug Manufacturers - Specialty & Generic

Nuvo Pharmaceuticals Inc is a Canadian focused healthcare company doing business as Miravo Healthcare with global reach and a diversified portfolio of commercial products. Its product targets several therapeutic areas, including pain, allergy, and dermatology. The company's strategy is to in-license and acquire growth-oriented, complementary products for Canadian and international markets. see more

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OTCQX:MRVFF - Post Discussion

Nuvo Pharmaceuticals Inc > Good leverage

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Post by lscfa on Mar 08, 2021 8:03pm

Good leverage

If cash flow is used to pay down debt and the low multiple stays the same stock price doubles.

2021 ebitda	22.6	22.6
x Multiple	6.0	6.0
= Ent value	135.6	135.6
- Net debt	115.6	94.0
= Mkt cap	20.0	41.6
/ Shs o/s	11.4	11.4
= Share value	$1.75	$3.65

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Comment by Marathon11 on Mar 08, 2021 8:56pm

What are your thoughts on the 25M+ warrants and the $40M prospectus and the fact that only BB covers this? I'm still acquiring.

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Comment by lscfa on Mar 08, 2021 11:53pm

The warrants have a $3.53 exercise price and won't be exercised any time soon. The $40 million prospectus has a 2 year shelf life and suggests they want to be ready in case an acquistion presents itself.

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Comment by ronz on Mar 09, 2021 8:41am

Shouldn't they be addressing the debt first from their last acquistion? Their business model isn't great. Their only option appears to start printing shares.... Sounds a lot more like the old Nuvo and Dimethaid business model again.

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Nuvo Pharmaceuticals Inc