Strike,

Those "events " you listed that "...occurred beyond the control of either Dr Gawad, the Board or Jim Essex that resulted in the current situation in Cardiogenics" are excellent examples of why these gentlemen IMO need to be replaced if the commercial potential of Cardiogenics technologies is to be realized.

Senior Management is retained and compensated to anticipate, plan for and successfully manage the Company through events that occur beyond the control of the Company.

The following is for your elucidation -

1. "..a key aspect of the initial business plan involved using projected revenue from the sale of the paramagnetic beads to fund the operations of the company up to the FDA approvel of the POC Analyzer." A start-up medical device company with two unproven technologies constructed a business plan to fund the development of one unproven technology from projected revenues of the other unproven technology - this is an excellent example of naive and inexperienced management thinking.
2. "..the delaying tactics of Merck could not be anticipated" Whether Merck delayed or not is an unknown but is an assumption an experienced management team would have built into their business model. Cardiogenics experience in developing the beads and POC analyzer should have signaled to management that unseen events should be anticipated, necessitating a business model that would enable the company to "successfully navigate' such potentialities.
3. The lack of significant capital negated the ability of CGNH to market the beads themselves by hiring a group of sales people" The lack of clinical data proving the beads perform as promised is a much greater factor in Cardiogenics' current financial position than the lack of a sales team to market the unproven beads.
4. "With respect to bringing a new CEO on board so that Dr. Gawad could spend more time in the lab I agree completely with Wow the King. The first priority for CGNH should be to raise enough capital to begin the Beta Site testing and fund its daily operations. The employment of a new CEO should come later." Given managements demonstrated inability to raise sufficient cash to fund the company thus far, IMO shareholders should have no confidence that Dr Gawad, Jim Essex and the Board will be able to raise sufficient money to fund the Beta Site testing and daily operations.

Ante