Hi Chazzle - Just want to clarify what happened

Hi Chazzle -

Just want to clarify what happened with the NP stock sales. You can find all of this on the SEC Edgar website in the Form 4 filed on May 4, 2020. I will summarize it here:

NP exercised 5,412,000 options/warrants at a weighted average strike price of 70.1 cents. This resulted in $3,972,000 of cash flowing to Cytodyn, from which they presumably paid bills. Many of us think this funding helped pay an invoice due to Samsung.

NP then immediately sold 4,820,000 of those shares in the open market at a weighted average price of $3.27 per share. This generated $15,747,860 in gross proceeds. After paying $3,972,000 to Cytodyn (strike price), NP had $11,955,000 in his bank account. He would then pay a large chunk of that to the IRS.

Some people think that NP put a portion of that $11,955,000 back in to Cytodyn, but we have no evidence of that.

At the same time, Scott Kelly did similar transactions on a much smaller scale: $655,000 to Cytodyn, $3,256,000 to the Kelly bank account. That form 4 was filed with the SEC on May 5, 2020.

NP did not "take a loss." He did not "cover CYDY at his own expense."

Essentially, he did the same thing that many warrant holders have done. We exercise our options, which helps fund CYDY. We then make a choice on whether to sell or hold shares. Many folks were disappointed that NP chose to sell so many of the shares. But, it is certainly his prerogative.

As an observation that means nothing: Today's closing price was $3.35. Not too far off from NP's sales price of $3.27 from around May 4.