Cytogenix (fka CYGX)

[downregul8]

Arnold – bingo!

This is not an either or situation. It’s about finding the right mix and applying appropriate funding as needed. Borrowing for land and buildings is common and relatively easy because the land and structures can be used to secure the loans.

Not having to repay the PPO proceeds is insufficient justification for this action. If they don’t have a sound business plan and reasonable ROI for this facility they should not commit $4M of borrowed money or PPO proceeds. If they do have a reasonable business plan then they should at least weigh the options. The notion that LW doesn’t like debt should make people wonder why? My reaction is that he is concerned about repayment, which could indicate he is not fully confident in the business plan or their ability to meet it. Sounds like he may have issues with commitment.