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From: The Australian March 23, 2011 12:00AM

KarmelSonix (KSX) 1.8c

ASTHMA affects about 300 million people in the Western world, so you would think that a mob that has developed the world's first at-home diagnosis would be treated with more respect than a $14m market cap.

KarmelSonix yesterday announced a local joint venture with Healthy Sleep Solutions -- the leading home sleep-testing provider locally -- to carry out the tests on its BlackBerry-sized WHolter devices, which are approved for use in Europe, the US and locally. CEO Ross Haghighat says the JV is expected to test around 24,000 patients annually. "We gain immediate access to a network of physicians and patients," he says.

It's hoped the partnership will expand to flow to Europe and the US, with the latter accounting for about 40 per cent of the $15bn asthma market.

While asthma treatment isn't exactly cutting edge, current diagnosis involves a spirometer and a visit to a specialist. It's also not accurate for about 20 per cent of sufferers. WHolters can also detect nocturnal asthama in patients adjudged to be suffering from sleep apnoea. KarmelSonix's financials look a tad wheezy, but the cavalry has arrived in the form of funds from up to $2.4m of exercised warrants.

The rub is that the warrants are attached to convertible notes that are being exercised at 1.5c ahead of a June 30 cut-off.

Arbitrageurs have been cashing in on the difference, resulting in huge turnover.

KarmelSonix plans to list on the Nasdaq exchange before July.

Speculative buy.

http://www.theaustralian.com.au/business/opinion/ezcorp-takes-control-of-pawn-shop-chain/story-e6frg9lo-1226026364788