Cytogenix (fka CYGX)

[arnold]

Hogger,
By doubling the number of shares we don't create any equity (or every company would double their shares.) What it does is shift half the equity out of the stockholder's hands and back into the board of director's hands. The problem is, the board of directors has a history of making deals only by issuing shares of stock. It is time that we make some financial deals with large pharmacuticals and sacrifice some of our future profit on a product for some sort of prepayment. We are now futher along with our product development and we won't have to make the type of questionable deal we made with Bunker Hunt. We could then use that prepayment to develop the next product. Once our first product is proven, we can make better and better deals. If our technology is as good as we think it is, the large pharmacuticals should be clamoring at our doors to be the first ones to get one of these block-busting products. Remember our business plan was to develop products and collect royalities, not to manufacture the product. We should have a long line of products in our pipeline.

Regarding the alternative possibility of executing a 2 for 1 split, or any other type of split, does not increase the equity for the company. If I had 100 shares at $1.00, I would now have 200 shares at $0.50 after a 2 for 1 split. My value would be the same. It's just like having a dollar or two half-dollars; they are worth the same. The main reason for a 2 for 1 or any other type of split is to bring down the price of a share of stock to make it more affordable for people to buy/sell. Additionally, there is no reason to believe splitting the stock will either attract additional investors or investing institutions. Often, these investors view a very cheap stock as very risky. Also, this will not further the effort of having the stock listed on a major exchange given the miniumum value per share requirements for listing.

I feel strongly that the board of directors of CYGX must have some favorable deals in progress. I have no information regarding this, but I just cannot believe with our technology that they don't. I hope some of this may come to light at the stockholders meeting. I think our main problem on this board is that company does not give enough information about financing.

Arnold