gdepc, NOT true, this is what I said.
Posted by: arnold
In reply to: None Date:11/4/2006 11:39:41 AM
Post #of 41809
We agree that the latest PR is very exciting news. If CYGX can make the deal work for a new building and lab, it is definitely a big step in the right direction for their future. Like many, we have concerns about their financing such a project especially due to their own words.
From the 8K filing:
The Company does not presently possess working capital sufficient to pay the foregoing purchase price installments, and the Company will be required to obtain financing in order to do so. There can be no assurance that the necessary financing will be available to fund the payment of the purchase price installments when they become due or, if available, that such financing will be on terms satisfactory or favorable to the Company.
As CYGX has signed the contract with GSL Constructors, Ltd, it is our hope that they have the majority of financing in place and that it is through bank financing and not more PPO's which will dilute the stock. The confusing aspect is that the contract does not appear to have any clauses showing how they plan to pay for the project and their above statement certainly doesn't clarify that either. Hopefully in the near future, this will be addressed and clarified.
Our guess for close of trading on Monday is $0.82.
A & I
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