you have to vote for the 400m new shares.
according to the 10k, they were down to just 20m unreserved shares as of august 31.
and they are essentially out of cash. the additional shares allow them to continue to pursue leronlimab as a clinical agent. its not an ideal situation but its a simple necessity.
a few people have indicated that they might not vote for the shares and it all depends on X. however, you have money invested in cytodyn and if you want to profit from the investment, then the company must have cash to pay for their operations, whatever that may entail for now.
every public company needs to fund operations and plenty of public companies have to dilute in order to do so. cytodyn is in that position at the moment. for years fife and warrant redemptions were financing cytodyn, and while there was some dilution via utilizing shares to make some of the debt payments, it was a slow burn kinda thing and limited.
however, after the 2021 notes from fife, the SEC/DOJ stuff started and fife was also drawing regulatory scrutiny on his own and he stopped funding cytodyn operations.
at the same time, due to the nature of how the SEC operates upon certain investigations, cytodyn was also banned from publicly selling shares. the share price was also impacted and so warrant redemptions slowed to a crawl.
and so beginning in the summer of 2021, cytodyn began funding operations via warrant exercise inducement agreements. that means that they approached warrant holders and said "hey, you are underwater, but we are willing to cut a deal if you exercise your warrants." they then offer additional shares in return for exercising warrants, enough so that the investor can then sell the shares and make back the amount of the warrant conversion, plus some profit.
but because warrant exchanges still rely on someone fronting millions, it is a limited approach and that is why the votes for additional shares began in november 2021.
they added 300m shares in november 2021 and have since had 4 private placements, using up those 300m shares and also much of the 350m added later, in august 2022. that is how they have funded operations for almost 2 years now - mainly via private placements, with some warrant inducements until 2023, and some small cash for shares dilutive deals with fife/paulson, and finally an actual loan from paulson this april which was then renegotiated into a cash for shares arrangement.
the first of 4 private placements was in december 2021, followed by larger placements in april-june 2022, then january-march 2023, and now june 2023-present. the first was a small placement that didn;t raise the intended amount. the next 2 raised $15m each, enough for 6 months of limited operations each time. the ongoing placement has been impacted by the stagnant share price and they have only raised $2m so far.
the 300m shares added in november 2021 were gone by the following august, hence the need to add 350m more in august 2022. in fact they had used MORE THAN the 300m shares before securing more in august 2022. most of the 300m were reserved via the april-june 2022 placement (placement #2). they also had to empty the employee equity incentive plan in order to utilize those shares to meet obligations. and they also had to delay the s-3 making placement shares effective (and tradable), until just prior to the vote securing the august 2022 batch of new shares. the vote was august 31 2022 and the shares from the prior 2 placements were made effective (tradable) on 9-2.
and so when they secured 350m more shares in august 2022, some of them were already promised as part of placement #2 and as part of other prior transactions. they also needed to replenish the employee equity incentive fund with the new shares. the bulk of the newly added 350m were utilized in placement #3 (january-march 2023) and the welch backstop transactions (60m warrants, backed by 60m shares). after that, they used almost all that remained in the transactions listed in the recent 8k. they paid off the paulson loan from this april with shares, they had 4 fife transactions to lower the principal debt by $2m in april thru august by issuing shares, and they had the transactions related to the ongoing private placement (#4).
and now, as i said up top, according to the 10k, they were down to just 20m shares as of august 31. hence the need for more shares, 400m this time, as the share price demands that, based on their experience with the prior votes for 300m (which lasted 7 months), and then 350m (which lasted 12 months).
so the vote will be here soon and you really need to vote yes. they need the shares in order to move forward with their operations, whatever that might entail for the time being.
the 400m shares can technically raise up to $33m but realistically more like $29m, at the current share price and using the same formula as their past private placements... 1 share and 1 warrant per unit, 12% fee to paulson, shares awarded to paulson totaling 15% of the number of sold shares. if a catalyst moves the share price in the meantime, then they could raise significantly more.
yes that is only about .08 per share. its just the way things shake out in private placements with warrant sweeteners and aggressive facilitators.
according to the 10k, they were down to just 20m unreserved shares as of august 31.
and they are essentially out of cash. the additional shares allow them to continue to pursue leronlimab as a clinical agent. its not an ideal situation but its a simple necessity.
a few people have indicated that they might not vote for the shares and it all depends on X. however, you have money invested in cytodyn and if you want to profit from the investment, then the company must have cash to pay for their operations, whatever that may entail for now.
every public company needs to fund operations and plenty of public companies have to dilute in order to do so. cytodyn is in that position at the moment. for years fife and warrant redemptions were financing cytodyn, and while there was some dilution via utilizing shares to make some of the debt payments, it was a slow burn kinda thing and limited.
however, after the 2021 notes from fife, the SEC/DOJ stuff started and fife was also drawing regulatory scrutiny on his own and he stopped funding cytodyn operations.
at the same time, due to the nature of how the SEC operates upon certain investigations, cytodyn was also banned from publicly selling shares. the share price was also impacted and so warrant redemptions slowed to a crawl.
and so beginning in the summer of 2021, cytodyn began funding operations via warrant exercise inducement agreements. that means that they approached warrant holders and said "hey, you are underwater, but we are willing to cut a deal if you exercise your warrants." they then offer additional shares in return for exercising warrants, enough so that the investor can then sell the shares and make back the amount of the warrant conversion, plus some profit.
but because warrant exchanges still rely on someone fronting millions, it is a limited approach and that is why the votes for additional shares began in november 2021.
they added 300m shares in november 2021 and have since had 4 private placements, using up those 300m shares and also much of the 350m added later, in august 2022. that is how they have funded operations for almost 2 years now - mainly via private placements, with some warrant inducements until 2023, and some small cash for shares dilutive deals with fife/paulson, and finally an actual loan from paulson this april which was then renegotiated into a cash for shares arrangement.
the first of 4 private placements was in december 2021, followed by larger placements in april-june 2022, then january-march 2023, and now june 2023-present. the first was a small placement that didn;t raise the intended amount. the next 2 raised $15m each, enough for 6 months of limited operations each time. the ongoing placement has been impacted by the stagnant share price and they have only raised $2m so far.
the 300m shares added in november 2021 were gone by the following august, hence the need to add 350m more in august 2022. in fact they had used MORE THAN the 300m shares before securing more in august 2022. most of the 300m were reserved via the april-june 2022 placement (placement #2). they also had to empty the employee equity incentive plan in order to utilize those shares to meet obligations. and they also had to delay the s-3 making placement shares effective (and tradable), until just prior to the vote securing the august 2022 batch of new shares. the vote was august 31 2022 and the shares from the prior 2 placements were made effective (tradable) on 9-2.
and so when they secured 350m more shares in august 2022, some of them were already promised as part of placement #2 and as part of other prior transactions. they also needed to replenish the employee equity incentive fund with the new shares. the bulk of the newly added 350m were utilized in placement #3 (january-march 2023) and the welch backstop transactions (60m warrants, backed by 60m shares). after that, they used almost all that remained in the transactions listed in the recent 8k. they paid off the paulson loan from this april with shares, they had 4 fife transactions to lower the principal debt by $2m in april thru august by issuing shares, and they had the transactions related to the ongoing private placement (#4).
and now, as i said up top, according to the 10k, they were down to just 20m shares as of august 31. hence the need for more shares, 400m this time, as the share price demands that, based on their experience with the prior votes for 300m (which lasted 7 months), and then 350m (which lasted 12 months).
so the vote will be here soon and you really need to vote yes. they need the shares in order to move forward with their operations, whatever that might entail for the time being.
the 400m shares can technically raise up to $33m but realistically more like $29m, at the current share price and using the same formula as their past private placements... 1 share and 1 warrant per unit, 12% fee to paulson, shares awarded to paulson totaling 15% of the number of sold shares. if a catalyst moves the share price in the meantime, then they could raise significantly more.
yes that is only about .08 per share. its just the way things shake out in private placements with warrant sweeteners and aggressive facilitators.
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