CYDY needs to sell about $6 million of stock every
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Posted On: 01/07/2022 11:08:19 AM
CYDY needs to sell about $6 million of stock every month in order to make payroll, pay bills and fund trials.
Further, they need to give Fife somewhere between $2 and $7 million of stock each month, per the terms of the notes. (The terms say $7 million, but Fife has been allowing them to defer some payments.) Fife can demand cash, but so far has accepted stock. To date, Fife notes have been priced at roughly a 20% discount to recent lows. (This would be about 58 cents based on today's low).
Sorry to say, but "hope" they don't have to issue shares isn't really in play here. They are constantly issuing shares.
As you note, a "partner" could be a further route to raise funds. At these prices, and considering the amount of funding needed, "partner" and "parent" pretty much mean the same thing.
The team has backed itself in to a corner as a result of not raising a cushion of capital when share prices were between $2 and $5.
Further, they need to give Fife somewhere between $2 and $7 million of stock each month, per the terms of the notes. (The terms say $7 million, but Fife has been allowing them to defer some payments.) Fife can demand cash, but so far has accepted stock. To date, Fife notes have been priced at roughly a 20% discount to recent lows. (This would be about 58 cents based on today's low).
Sorry to say, but "hope" they don't have to issue shares isn't really in play here. They are constantly issuing shares.
As you note, a "partner" could be a further route to raise funds. At these prices, and considering the amount of funding needed, "partner" and "parent" pretty much mean the same thing.
The team has backed itself in to a corner as a result of not raising a cushion of capital when share prices were between $2 and $5.
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(1)CytoDyn Inc (CYDY) Stock Research Links
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