Cliff notes on today's 8-k regarding fundraising:
1. A very small raise of $300,000 as a result of offering a discounted exercise price to some warrant holders. Not significant.
2. A modest raise of $1.5 million cash from selling 1.4 million shares at $1.10. Based on the closing prices on the dates of the raise, the discount was about 12% to market. Buyers also received 25% warrant coverage as a sweetener.
3. Fife transaction: We got $2 million in debt reduction by issuing 2.1 million shares. Value per share was $.95 (95 cents). Discount was 25% to market price. No cash to CYDY, but a reduction in our debt to Fife.
4. November 17 share issuance: Issue 8.1 million shares for $8.1 million cash. Price is $1.00 per share. 24% discount to market. Buyers also got 30% warrants as sweetener (2.4 million warrants).
4.a: For item 4 above, CYDY paid a commission of $860,000 (a little more than 10% of the cash received), plus issued 1 million warrants.
The company needs clearly needs cash and needs to reduce the Fife debt. So transactions are happening around $1 per share, with 25% to 30% warrant sweeteners. Retail investors are buying (and selling) at $1.20 to $1.30 at the same time.
All that said, we still need to approve the new share offering. I wish it were less than 200 million shares, but we only have one thing to vote on. We don't get to choose our own amount!