(Total Views: 662)
Posted On: 05/05/2020 1:31:03 AM
Post# of 148908
Some people here are coming off as being jaded about NP selling his shares even while knowing why he did it. I finally got a chance to listen to the Proactive interview and I did not have any problem understanding why he sold shares.
Think about it. Do you believe he took advantage of current SP with a lot more upside to enrich himself thinking he'd better get his before this all falls apart? Or do you believe what he said about needing the money to pay Samsung?
Here's how I think the deal went down:
1. NP did a cashless exercise of his stock options which personally netted him the sale price in the open market less the cost to exercise; i.e., on a per share basis, if cost to exercise is $0.70 and sale price is $3.50, he'd have netted $2.80 per share.
2. NP isn't a fool. With the money he netted, he could have:
(a) Loaned the Company the money he netted via a convertible note so he could protect against the opportunity cost if the SP is much higher in the future.
(b) Purchased warrants with an exercise price with a discount on the past 10-day average SP.
(c) Or he could have simply loaned the company money knowing that he could expect a big bonus after some future milestone.
People invested here should NOT feel suspicious or negative toward the CEO who's done more that any of you to bring CYDY to where it is (unless you don't believe the science).
People who work hard and successfully deserve to be rewarded. That he did what he did with his options is REALLY nice of him to say the least. He could have easily not risked his personal wealth and simply diluted the Company further. But lenders aren't good Samaritans and would likely have demanded terms that would be much more dilutive to shareholders.
I've only owned this stock for about a month now, but I can tell that you have a good CEO at this moment (I have no idea of what he's done in the past).
People panicking over this issue need to get their head on straight. I don't see how this need to raise money to pay Samsung could have gone any better for shareholders.
Think about it. Do you believe he took advantage of current SP with a lot more upside to enrich himself thinking he'd better get his before this all falls apart? Or do you believe what he said about needing the money to pay Samsung?
Here's how I think the deal went down:
1. NP did a cashless exercise of his stock options which personally netted him the sale price in the open market less the cost to exercise; i.e., on a per share basis, if cost to exercise is $0.70 and sale price is $3.50, he'd have netted $2.80 per share.
2. NP isn't a fool. With the money he netted, he could have:
(a) Loaned the Company the money he netted via a convertible note so he could protect against the opportunity cost if the SP is much higher in the future.
(b) Purchased warrants with an exercise price with a discount on the past 10-day average SP.
(c) Or he could have simply loaned the company money knowing that he could expect a big bonus after some future milestone.
People invested here should NOT feel suspicious or negative toward the CEO who's done more that any of you to bring CYDY to where it is (unless you don't believe the science).
People who work hard and successfully deserve to be rewarded. That he did what he did with his options is REALLY nice of him to say the least. He could have easily not risked his personal wealth and simply diluted the Company further. But lenders aren't good Samaritans and would likely have demanded terms that would be much more dilutive to shareholders.
I've only owned this stock for about a month now, but I can tell that you have a good CEO at this moment (I have no idea of what he's done in the past).
People panicking over this issue need to get their head on straight. I don't see how this need to raise money to pay Samsung could have gone any better for shareholders.
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