ECGI Holdings Inc (ECGI)

[Potse]

Nice financing, corporate development.....

The $1.08M financing package (6.4 cents per share, and 15-cent warrants) in February was an important and very encouraging development, especially since the Life Medical dispute has not been resolved yet. It is pretty clear that those investors believe the company will remain a viable business/investment, and it is also an extremely high vote of confidence that ECGI will successfully obtain marketing approvals for NowCardio in markets outside Canada. The way the licensing agreement for NowCardio is currently set up, ECGI only receives significant fundamental benefits from its activity in the non-Canada markets.

Things might get a bit interesting from this point forward following the most recent corporate developments. Now that ECGI has regained marketing rights to NowCardio in all countries/markets, Canadian regulatory application/approval should have a more positive direct impact on the company/stock.

The financing this past week was done at significant premiums to the current price ($1M at 10 cents and $375K at 15 cents, with 25-cent warrants). Also very interesting to note that it appears these latest warrant packages do not have any cashless exercise provisions in the agreement. All things considered, this looks like a pretty favorable development for current ECGI shareholders.

Based on yesterday's press release, it appears that ECGI has hired a new public relations firm (Dian Griesel International). So there will likely be an increased level of media awareness of the company at some point.

Also, reference to the BreastCare DTS product was removed from the ECGI website a couple of weeks ago. It will be interesting to see if this is any indication that some completion/resolution of the dispute between ECGI and Life Medical has been reached.