The 10Q ending April 30, 2013 contained several points of interest for those of us that own shares of Cardiogenics. IMO the following six points are worth your consideration -
- G&A reduced $95k or 50% due to decrease in consulting fees;
- R&D reduced $97k or 50% due to decrease in staff;
- Cash burn rate of only $55k during last 6 months;
- $200k advance in April by unrelated third party (Saunders?) against Series B Debenture Units issued after April 30, 2013. In May 2013 this unrelated party advanced another $300k and exchanged for Series B Convertible Debentures (2 million shares at $0.25 and 3 million options at $0.15;
- $25k borrowed March 27 against JMJ Financial $350k line of credit; and
- warrants to purchase 3 million shares issued to consultants expired March 20th
IMO Cardiogenics should have issued a Press Release announcing their plans to reduce the company's cash burn rate through a reduction in staff and use of consultants. In my experience these are material events for a company like Cardiogenics.
Ante
