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Nuvo Research Inc. |
This is what is in the Q1 report:
"In the first quarter, we launched our second Warrant Incentive
Program to encourage the early exercise of approximately 73.9 million
outstanding warrants. The program was successful as 42% of the
warrants were exercised, generating net cash proceeds of $3.7
million."
The breakdown of those is as follows:
As of March 31, 2009, the Company received proceeds of $2.2 million,
net of professional fees of $0.1 million, from the exercise of 2.1
million November 2004 Warrants, 0.7 million June 2006 Warrants and
16.1 million July 2007 Warrants under this program. Subsequent to the
quarter, the Company received additional proceeds of $1.5 million from
the exercise of 11.8 million warrants. Total proceeds received from
the 2009 Warrant Incentive Program, net of professional fees were $3.7
million.
My take on what is happening now:
The remaining July warrants are what have been holding this thing at
the current levels. They expire on July 13th although the majority of
them have been excersiced over the past month or so according to my
calculations. Some people think the price won't move above this flat-
line we have seen as of late until the 13th. I believe we will start
to see a little movement before then, albeit probably not a whole lot.
After the 13th this thing will start to really take off IMO probably
pushing the $1 mark just prior to the Aug 5th proposed decision date.
Hope this helps.
On Jul 1, 1:05 pm, "Paula&Max million" <1million2...@gmail.com> wrote:
> The November 2009 Warrants were issued as part of a financing
> completed in November 2004 and
> can be exercised at $0.48 until November 16, 2009.
> The June 2009 Warrants were issued as part of a financing completed in
> June 2006 and can be
> exercised at $0.50 until June 20, 2009.
> The July 2009 Warrants were issued as part of a financing completed in
> July 2007 and can be
> exercised at $0.30 until July 13, 2009.
> In order to encourage the early exercise of the warrants, Nuvo is
> amending the November 2009
> Warrants, the June 2009 Warrants and the July 2009 Warrants,
> respectively, so that upon payment
> of the applicable reduced exercise price of $0.125 (which represents
> the volume weighted average
> trading price of Nuvo common shares over the last five days) and
> surrender of the holder’s warrant
> in accordance with applicable procedures, the holder will be entitled
> to receive one common share
> of Nuvo.
> Nuvo is providing the holders of November 2009 Warrants, June 2009
> Warrants and July 2009
> Warrants an exercise period commencing on January 21, 2009 and ending
> at 5:00 p.m. (Toronto
> time) on April 3, 2009 to exercise their warrants under the offer. If
> a holder does not exercise his or
> her warrants prior to April 3, 2009, the warrants will continue to be
> exercisable for common shares
> of Nuvo on the same terms as previously existed.
> Insiders will not be eligible to participate in the warrant incentive
> program.
> The gross proceeds to Nuvo if all the November 2009 Warrants are
> exchanged is $2.5 million. The
> gross proceeds to Nuvo if all the June 2009 Warrants are exchanged is
> $0.5 million. The gross
> proceeds to Nuvo if all the July 2009 Warrants are exchanged is $6.2
> million."
> I know this is old news but I am interested in what you think the
> warrants mean and how they affect the stock price.
> Thanks.