Johnny Boy, why not put your article on arXiv.org, then we can all read your article?

The referee report wasn't that negative. I have received a similar refreee report myself too some time ago and was still able to publish my paper in another journal.

You need to explicitely address the points raised by the referee in your article, even if you feel it is unnecessary. So, your theory may have the answers, but to the referee this isn't clear. Often it is best to modify the introduction of the paper and incorporate the points raised by the referee to explain what you are going to do and why.