Email to shareholders by Nader
FYI
Dear All: I had an email from a shareholder and several others have raised the same concern that maybe I have been too optimistic about CytoDyn. Please see below my response to this shareholder who I appreciate him very much and thank him for constructive criticism.
With best regards,
Nader
From: Nader Pourhassan
Sent: Sunday, November 3, 2019 7:55 AM
To: XXXXXX
Subject: RE: Leronlimab
Dear XXXX:
Thank you for your kind words and constructive criticism. I will be more than happy to have a call with you, however, for what it’s worth here is my thoughts.
In regards to being too optimistic, I want to thank you for bring this up and hopefully I am not going to be arrogant and hopefully I will be able to accept a criticism and learn from it.
What I have said in the annual shareholders meeting (ASM) is that our attorneys have advised me over and over that go quiet and give news about a task when the task is completed. I have refused to do that. The attorneys argued that I am setting expectations, I replied, I am trying to set expectations, but I will be 100% honest in doing so.
I indicated in the ASM that in order to not let our shareholders stay in a dark about our progress in many different tasks that CytoDyn is involved in, I will let everyone know exactly where we are with all our activities.
So in that regards, I told our shareholders that CytoDyn have signed a NON-BINDING agreement that expires in 6 weeks. I (thought) that I was giving another good news when I said that we now are a few weeks away from final agreement being signed because obviously the non-binding agreement’s 6 weeks went by and the due diligence were SUCCESSFUL.
I could have easily said the agreement is over and we did not reach a deal in 6 weeks. I also said in the ASM that I don’t know if a deal will be done or not if it does I will let all know and if it does not then I will let all know that also. Just trying to stay visible in these very crucial times for the benefit of our shareholders. I know I am putting myself out there to be criticized big time but I owe this to the shareholders and if I must take beating from the shareholders in this regards then so be it.
Also please note that both NASH and Cancer trials timelines were beat by almost 2 months.
First patients in mTNBC trial enrolled less than a week when I took over that program and we are now days away from (hopefully) major announcement. Again this is my hope if we have positive results
NASH large animal trial is days away from (hopefully) major announcement. Again if the results are positive. And if we are able to sign a definitive agreement for the revenue of leronlimab without raising $50 million now so we could launch the product, then a few weeks (to me) is just not any time at all. If we do we might have set a record with our timeline for such deal being completed so soon.
I do take responsibility for the stock price, but just remember as I said in the ASM, in 2015 and 2016 I raised about $35 million each year and the stock AVERAGE price was 88 and 94 cents respectively. The board of director brought a new leader and their main goal was to CURE the stock price (take it to a much higher level and they thought I was the problem) and all my ways were changed. CytoDyn announced the coming of a new leader when the stock was 73 cents and I was given back the leadership when the stock was at 43 cents with the company in about $20 million in debt. We raised about $80 million since that day (July 2018) to get us where we are today in the brink of:
1) Major NASH animal data (last company with great data got $1 billion licensing deal with animal data)
2) Major mTNBC data read out (with BTD possible this year)
3) Success with Monotherapy that took me changing our KOLs mind several times from stopping the mono and realizing that there is a path to approval and the FDA so far has agreed. All these are recorded with emails and so forth and in future (maybe) everyone will be able to see those emails.
4) BLA submission for major historical achievement
5) Major licensing agreement for revenue so CYDY does not have to raise $50 million to launch leronlimab
6) PrEP major news before end of the year for HIV – COULD include funding from US army
7) Cure for certain cancer patients with HIV – COULD have major funding in the next 2-3 months
Two major abstract submission to CROI with results due on Nov 15, 2019
9) Licensing agreement for the sale of certain indication (very possible in the next 2-3 months)
10) the list goes on and on…
As I said before if we are successful (which in my opinion we definite will be), then sky is the limit for our stock, books will be written about what we have overcome (in many aspects), and shareholders (in my humble opinion) most likely will never see something like this again.
I thank you for all your patients in these very difficult times and thank you for your well wishes for my mother-in-law.
With best regards
Nader
FYI
Dear All: I had an email from a shareholder and several others have raised the same concern that maybe I have been too optimistic about CytoDyn. Please see below my response to this shareholder who I appreciate him very much and thank him for constructive criticism.
With best regards,
Nader
From: Nader Pourhassan
Sent: Sunday, November 3, 2019 7:55 AM
To: XXXXXX
Subject: RE: Leronlimab
Dear XXXX:
Thank you for your kind words and constructive criticism. I will be more than happy to have a call with you, however, for what it’s worth here is my thoughts.
In regards to being too optimistic, I want to thank you for bring this up and hopefully I am not going to be arrogant and hopefully I will be able to accept a criticism and learn from it.
What I have said in the annual shareholders meeting (ASM) is that our attorneys have advised me over and over that go quiet and give news about a task when the task is completed. I have refused to do that. The attorneys argued that I am setting expectations, I replied, I am trying to set expectations, but I will be 100% honest in doing so.
I indicated in the ASM that in order to not let our shareholders stay in a dark about our progress in many different tasks that CytoDyn is involved in, I will let everyone know exactly where we are with all our activities.
So in that regards, I told our shareholders that CytoDyn have signed a NON-BINDING agreement that expires in 6 weeks. I (thought) that I was giving another good news when I said that we now are a few weeks away from final agreement being signed because obviously the non-binding agreement’s 6 weeks went by and the due diligence were SUCCESSFUL.
I could have easily said the agreement is over and we did not reach a deal in 6 weeks. I also said in the ASM that I don’t know if a deal will be done or not if it does I will let all know and if it does not then I will let all know that also. Just trying to stay visible in these very crucial times for the benefit of our shareholders. I know I am putting myself out there to be criticized big time but I owe this to the shareholders and if I must take beating from the shareholders in this regards then so be it.
Also please note that both NASH and Cancer trials timelines were beat by almost 2 months.
First patients in mTNBC trial enrolled less than a week when I took over that program and we are now days away from (hopefully) major announcement. Again this is my hope if we have positive results
NASH large animal trial is days away from (hopefully) major announcement. Again if the results are positive. And if we are able to sign a definitive agreement for the revenue of leronlimab without raising $50 million now so we could launch the product, then a few weeks (to me) is just not any time at all. If we do we might have set a record with our timeline for such deal being completed so soon.
I do take responsibility for the stock price, but just remember as I said in the ASM, in 2015 and 2016 I raised about $35 million each year and the stock AVERAGE price was 88 and 94 cents respectively. The board of director brought a new leader and their main goal was to CURE the stock price (take it to a much higher level and they thought I was the problem) and all my ways were changed. CytoDyn announced the coming of a new leader when the stock was 73 cents and I was given back the leadership when the stock was at 43 cents with the company in about $20 million in debt. We raised about $80 million since that day (July 2018) to get us where we are today in the brink of:
1) Major NASH animal data (last company with great data got $1 billion licensing deal with animal data)
2) Major mTNBC data read out (with BTD possible this year)
3) Success with Monotherapy that took me changing our KOLs mind several times from stopping the mono and realizing that there is a path to approval and the FDA so far has agreed. All these are recorded with emails and so forth and in future (maybe) everyone will be able to see those emails.
4) BLA submission for major historical achievement
5) Major licensing agreement for revenue so CYDY does not have to raise $50 million to launch leronlimab
6) PrEP major news before end of the year for HIV – COULD include funding from US army
7) Cure for certain cancer patients with HIV – COULD have major funding in the next 2-3 months
Two major abstract submission to CROI with results due on Nov 15, 2019 9) Licensing agreement for the sale of certain indication (very possible in the next 2-3 months)
10) the list goes on and on…
As I said before if we are successful (which in my opinion we definite will be), then sky is the limit for our stock, books will be written about what we have overcome (in many aspects), and shareholders (in my humble opinion) most likely will never see something like this again.
I thank you for all your patients in these very difficult times and thank you for your well wishes for my mother-in-law.
With best regards
Nader
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