> "Mississauga, Ontario, Canada – January 6, 2009 - Nuvo Research Inc.
> (TSX: NRI), a Canadian
> drug development company focused on the research and development of
> drug products delivered
> to and through the skin using its topical and transdermal drug
> delivery technologies, announced
> today that the Toronto Stock Exchange (“TSX”) has approved a warrant
> incentive program
> designed to encourage the early exercise of 20,012,494 warrants (the
> “November 2009 Warrants”),
> 3,901,898 warrants (the “June 2009 Warrants”) and 50,000,000 warrants
> (the “July 2009
> Warrants”).
> To the extent that holders of the warrants take advantage of the
> opportunity, the early exercise of
> the warrants will provide Nuvo with additional capital to continue to
> execute its current business
> plan. The proceeds of the early exercise will fund capital
> requirements relating to the development
> and commercialization of Nuvo’s pharmaceutical products, primarily its
> Pennsaid® and Pennsaid
> Plus® products, and for working capital and other corporate purposes.

> 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.