UPDATE NRI (reverse split)

I have been advocating a stop to the idea of a Reverse Split on the NRI stock for many reasons.

The first one is opening the door to further dilution. When you have management diluting stock over the years like they did (even if the reasonning was ok and need of funds was there) it is a great concern to have that stock reversed as a 10 or 20 or 40 to 1. Imagine what they would do if in 1 or 2 years they were in need of cash for whatever reason, what would they do: issue more shares...they could do it actually. Sure but even 10M new shares would only represents 2,5%. Now imagine 1M shares out of 20M: it's a 5% dilution. Could you imagine a company issuing only 500 thousnads shares? Come on, you know it does not work like that. Any new share issuance are in the 10'th of millions.

The second one is results coming from the Pensaid sales in the USA. It shoudl start happening soon and why not give a chance to see some real numbers before  doing any kind (or asking for the right to do it) of reverse split. It is not needed at this time nor in the very near future. They could easily wait another year. The bank is fully loaded with money and there are no major projects in sight. Rememebr that all expenses relating to Pensaid and Pensaid + developments are paid by Coviden. So why the rush???

The third reason is the lack of communication. Honestly we do not have a clue of what is going on with Nuvo. It is hard to get answers from them, they do not give any follow up on their projects. They seems like tight lips on everything. Why is that? what are the goals of keeping everything so confidential? Are they afraid that if we knew what was happening that the share would rise???

One may consider the fact that nothing is happening out there. After all, they have the obligation to disclose any events affecting (positive or negative) the company.

Last but not the least, i am still awaiting anybody who could name me 1 (only 1) company that saw their shares increased over the years after they did a reverse split. It does not work like that.

Note also that it will not change their market cap (value) only the number of shares available.

So why is this so urgent: oh yeah getting listed on an american exchange... WOW big deal.

Compare that to AEZ (Aeterna Zentaris). They have been listed for so long on the US exchanges. But they still had to endure a drop from 2,83$ in 2009 to a bit over 1$ today.

The only way to get a company share price increase is to have their VALUE increase. They can do that by eliminating debt (it is already done) and increase revenues. I think Pensaid will do that.

So owning 10,000 shares of Nuvo at 6$ or 200,000 at 0,30 does not make a difference today.

Getting listed on nasdaq or amex will not do any difference either. It may attract new shareholders but at what discount price?

COMPANY VALUE will increase your value as shareholder.

So in my opinion, whenever you get your package (if you do not please get a control number from your broker) vote NO for the share consolidation for now.

When we know 2-3 quarters of results, i may change my mind but for the moment it is a clear no.

Enough is enough.  Product is great, future looks great, let the long timers owners of NRI get back some of their investment.