Cytogenix (fka CYGX)

[david02835]

Holycow, the options for CYGX to finance the proposed facility are fairly limited.

1. they do not qualify for conventional bank financing unless personal signatures from concerned people (i.e. management LOL) can be obtained promising to pay off the cost of the building if the company fails to do so.

2. they raise the money throught the sale of stock. I recall a statement by the company last spring that said they needed about $6.5M to get through the rest of the year and that around $4M would be needed to pay for a new facility. Dilution involved with this option.

3. Other smarter companies than CYGX often find an "angel" to either pay for the building and lease it back to the company at "favorable rates to the landlord" with an option to buy, or set up a side company that will own the real estate and perhaps get a stock position in the company as well or a combination debt and stock position.

I hope that the company is getting close enough to success that they can find an "angel" with some mercy for the present stockholders like us! Take care.