Dog,

I wish we knew one another; if so, I would bet you a dinner that the financing will be closer to my estimate than your 3-4x model. IMO there is no chance Cardiogenics is going to dilute itself to raise $4 million at these share prices.

I would encourage you not to get wrapped up in the "mumbo-jumbo" of accounting but rather keep focused on the actual cash Cardiogenics has to spend to maintain the company. At the end of 2010 fiscal year they had $1.8 million in cash and at the end of 2011 they had approximately $200k left. I note their cash burn rate for the first two quarters of FY 2012 were similar to 2011, that is around $800k.

Without knowing the status of their licensing efforts of the analyzer, I would imagine Dr G's plan is to raise enough cash to operate the company until he can present clinical data to potential licensees. If I am correct, Dr G's target raise could be as low as $800k.

The next few months will confirm which of us is correct.

Ante