MISSISSAUGA, ON, Aug. 1 /PRNewswire-FirstCall/ - 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, today announced that it is proposing to amend the terms of its convertible, unsecured debentures (the "Debentures"), of which $4.136 million principal amount are outstanding. The Debentures were issued in November, 2004, pay interest at a rate of 5.0% per annum, currently mature in November, 2009 and are currently convertible into common shares of Nuvo at a price of $0.30 per share (except for certain Debentures held by directors and officers of Nuvo, which are currently convertible at a price of $0.39 per share).
The board of directors of Nuvo has determined that it would be prudent, and in the best interests of Nuvo, to extend the maturity date of the Debentures. As such, Nuvo is seeking the approval of the holders of the Debentures to extend the maturity date for one year to November 16, 2010. In consideration for the holders of the Debentures agreeing to such extension, Nuvo will reduce the conversion price of the Debentures to the current five-day volume weighted average trading price of the common shares, being $0.138. Nuvo intends to seek the approval of the holders of the Debentures over the next few weeks by way of a written resolution, which, to be effective, must be signed by holders of two-thirds of the outstanding principal amount of the Debentures.
"These debentures are potentially problematic in that they mature and
would have to be repaid, if not converted, soon after the date by which we
expect to receive the U.S. FDA's response to our application for Pennsaid
approval, which we expect to submit to the FDA in early 2009," stated Jim
Moulds, Nuvo's Chief Financial Officer. "Our focus over the past several
months has been to extend our financial runway as far as poss
|SOURCE Nuvo Research Inc.|
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