arnold, borrowing 4 mil at CYGX's current financial position would be like an individual with no credit background borrowing a large sum on a credit card...you're going to pay a heavy interest rate. Payments come due at specific times, and for a company with no reliable income, it becomes very dicey to borrow money, not to mention the bad press if there is a default on a loan. Issuing additional shares, on the other hand, does not require payments to a lender, and the shares in the "bank" are very versatile. Thus it's a safer move to issue shares than to borrow.
