Chilbear, apologies for not defining the acronyms -

cGMP stands for Current Good Manufacturing Practices, a requirement that must be met by healthcare companies to ensure the qualtiy of their products

CMO stands for Contract Manufacturing Organization so a third party vendor that CGNH would contract with to manufacture their beads, cartridges and analyzers. I think this is the case as their SEC filings do not indicate that CGNH has manufacturing capabilities.

I follow a practice of not contacting a company's IR firm or department as they can only tell me what is in CGNH's public disclosures. By speaking with them I run the risk of having the public information presented to me with a bias that favors the interests of the company. Public documents must by law be accurate and factual.

The Second Merck Agreement (a redacted version should be filed with the SEC soon, probably with the next 10Q) provides CGNH with the opportunity to issue an invoice to Merck at the time of shipment of the beads. This is important as CGNH could be shipping beads this Quarter, thus generating a revenue stream that could be leveraged into a credit facility that would enable CGNH to pay for the development costs of the POC analyzer. If this is the case, then I would be inclined to buy more shares now as the likelihood of a decline in price due to a dilution has been reduced.

Please note that CGNH will be supplying beads in bulk and Merck will perform the coating. What I would like to know is who is manufacturing the beads (CGNH or a third party CMO), what volume of beads is forecasted for the next 12 months, at what transfer price and what is the profit margin that CGNH makes on each unit volume shipped.

Finally, Doc indicated that you have visited their Mississauga facility, during this visit did you see anything that could provide a manufacturing volume to supply Merck's commercial needs. Only 6k sq feet, so much of the space should be offices, reception, a lab and some storage. IMO very unlikely they can manufacture the bulk beads but I would like to have this assumption confirmed.