It seems to me a good indication if Fife is a stock investor. The deal seemed to me that Fife has the option to take a payment at $10/share, even when the share price was $25 or $35 or whaever but way up. So Fife got shares a lot cheaper than $10/share, and now when the share price goes up, he'll do quite a bit better.
Making the math with easy numbers....
A) If Fife would take a $5 million payment now at a share price of $5/share, he would get 1 million shares, value = $5 millon
If Fife takes a $5 million payment when the share price is $10/share, he would get 500,000 shares, value = $5 million. Fewer shares but still $5 million
Fife may just want to sell the shares and get cash. Who knows?
But if Fife is a seasoned investor who believes in Leronlimab, and if he wants to hold his shares for potential gain, because he is certain of the high probability of CYDY share price flying past $10/share soon, then he has made a very good move.
One more thought, it would seem the above paragraph is true, because first, he was willing to make a huge loan to a zero revenue OTC small biotech with no approvals and second, because of the terms of the loan. He knew he could take shares as payment at $10/share when the share price was above $10.
OK, let's say the stock price goes to $10 on Tuesday, or next week or whatever. In scenario A, Fife would then have $10 million worth of stock, a $5 million profit already. In scenario B, when the stock hits $10, he takes his payment of 500,000 shares X 10 = $5 milion, then as of that point in time he has only $5 million vs $10 million in scenario A.
I'd say Fife is not only confident in Leronlimab, our EUA, or sales, but also that he probably expects a rise in share price very soon.
The variable here which I'm not familiar with, is whether or not this recent payment, in shares of stock, was prearranged for a specific date, and if Fife had the option not to take a payment. Or since the interest rate was 10%, maybe Cytodyn could have liquidated some stock, and just paid Fife in cash. Just the fact that Fife accepted stocks, is a good indicator.
Do we know whether or not Fife has already liquidated his stock payment?
Making the math with easy numbers....
A) If Fife would take a $5 million payment now at a share price of $5/share, he would get 1 million shares, value = $5 millon
If Fife takes a $5 million payment when the share price is $10/share, he would get 500,000 shares, value = $5 million. Fewer shares but still $5 million Fife may just want to sell the shares and get cash. Who knows?
But if Fife is a seasoned investor who believes in Leronlimab, and if he wants to hold his shares for potential gain, because he is certain of the high probability of CYDY share price flying past $10/share soon, then he has made a very good move.
One more thought, it would seem the above paragraph is true, because first, he was willing to make a huge loan to a zero revenue OTC small biotech with no approvals and second, because of the terms of the loan. He knew he could take shares as payment at $10/share when the share price was above $10.
OK, let's say the stock price goes to $10 on Tuesday, or next week or whatever. In scenario A, Fife would then have $10 million worth of stock, a $5 million profit already. In scenario B, when the stock hits $10, he takes his payment of 500,000 shares X 10 = $5 milion, then as of that point in time he has only $5 million vs $10 million in scenario A.
I'd say Fife is not only confident in Leronlimab, our EUA, or sales, but also that he probably expects a rise in share price very soon.
The variable here which I'm not familiar with, is whether or not this recent payment, in shares of stock, was prearranged for a specific date, and if Fife had the option not to take a payment. Or since the interest rate was 10%, maybe Cytodyn could have liquidated some stock, and just paid Fife in cash. Just the fact that Fife accepted stocks, is a good indicator.
Do we know whether or not Fife has already liquidated his stock payment?
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