Cliff notes on today's 8-k regarding fundraising:
Post# of 153864
(Total Views: 764)
Posted On: 11/23/2021 9:00:37 PM
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!
See you at the shareholder meeting.
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!
See you at the shareholder meeting.
(10)
(2)