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Nuvilex Teaches Wall Street a Lesson in M&A

Jul 17 2013 12:00AM

Marketwire

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BALTIMORE, MD -- (Marketwired) -- 07/17/13 -- In a newly released research update, Goldman Small Cap Research, a stock market research firm focused on the small cap and microcap sectors, notes in a recent article on its website that after reviewing the structure of Nuvilex's (OTCQB: NVLX) recently announced acquisition, the Company has demonstrated it can teach Wall Street a lesson or two in how to execute M&A.

As a result of the aforementioned acquisition, Nuvilex now owns exclusive worldwide licenses associated with the live-cell encapsulation-based pancreatic cancer treatment. Plus, these licenses include worldwide rights to utilize the live-cell encapsulation platform technology to develop treatments for any and all cancer types, regardless of the cell type encapsulated.

It should be noted that it is not uncommon for small biotechs to acquire intellectual property via license. However, many firms make the common mistake of biting off more than they can chew as the management team's collective eyes get big in anticipation of all of the benefits a license execution can offer. These firms invariably acquire associated entities or non-core assets in conjunction with an exclusive IP license that too often doom the firms that are run by scientists and not operators, and the end result is an ugly mess, with no access to capital.

In the case of Nuvilex, management originally intended to go down the path of acquiring the entity that owned the subsidiary that owned the IP. It could have been clean and simple and would have also meant acquiring senior personnel, overhead, and unrelated costs. Moreover, such a deal would have likely required greater investment dollars (and 100M shares) which would have resulted in substantial dilution.

By taking a very slow and steady approach, and focusing on the most critical piece of the acquisition (exclusive license) instead of becoming too big too soon (by acquiring the entity), management executed a great deal for shareholders.

Now, shareholders in Nuvilex own the exclusive rights to a highly efficacious oncology treatment platform that may be used to treat multiple forms of cancer, based upon tremendous Phase II clinical trial results. Moreover, by demonstrating prudence and patience, the Company should be able to increase its product treatment arsenal and attract new partners and investors, as needed. Therefore, with the wind at its back, and a history of clinical and M&A success, shareholders appear primed to be rewarded with higher stock prices in the future.

To view Nuvilex reports and articles and to view our disclaimer, please visit
www.goldmanresearch.com.

About Goldman Small Cap Research: Led by former Piper Jaffray analyst and mutual fund manager Rob Goldman, Goldman Small Cap Research produces small cap and micro cap stock research reports, daily stock market blogs, and popular investment newsletters. For more information, visit www.goldmanresearch.com.

A Goldman Small Cap Research report is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed. Please read the report's full disclosures and analyst background on our website before investing. Neither Goldman Small Cap Research nor its parent is a registered investment adviser or broker-dealer with FINRA or any other agency. To download our research, view our disclosures, or for more information, visit www.goldmanresearch.com.

About Nuvilex, Inc. (OTCQB: NVLX): Nuvilex, Inc. has been a provider of all-natural products for many years, has expanded its company to increase its natural product based footprint through medical marijuana studies and is becoming an international biotechnology provider of live, therapeutically valuable, encapsulated cells and services for treatments, research and medicine. The Company's offerings will ultimately include cancer, diabetes and other clinical treatments using the company's natural product knowledge, product base, cell and gene therapy expertise, and live-cell encapsulation technology in addition to other new products currently under development. For more information visit: www.nuvilex.com.



Goldman Small Cap Research
Rob Goldman
Analyst
410-609-7100
rob@goldmanresearch.com





Source: Marketwire


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