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And what is your point? This link points to an article that's almost 10 years old. If your point is that out-dated information such as this should be ignored - I agree.
Yes, that was my point.
It can take 7-10 business days following the RS to get Nasdaq's approval to uplist.
Yep - I always look forward to the news that follows the RS and uplist because you can guess what the shorts are thinking based off of the level of news and frequency. They're going to be thinking either "not so bad" to "okay, I can deal with that", to "oh crap", to "oh s**t, to "holy s**t, to "OMG, I'm f****d".
Okay, thanks for the clarification, Tom. Have a good Easter weekend!
I'm really surprised by that because, as you know, naked short selling is the act of selling shares that don't exist by MMs. Do you know why or how that reduces naked shorting? Just curious...
Thanks
Paperboys still exist? LOL Well, I guess the newspaper companies that are still in business are glad to hear that. I suspect they'll eventually go the way of the buggy whip.
To prevent shorts from borrowing your shares, create a non-margin account to store your shares. I have two eTrade accounts and I keep my CYDY shares in a non-margin account, and then move them to the margin account when I want to sell them so that I can have immediate access to the cash. At eTrade, they do not require you to sign an agreement to lend your shares if they are in a margin account, and will lend them w/out your permission. But I am aware that many other brokers do require your approval to lend them out. Best bet is to not store them in a margin account.
What this buys us is much more visibility, which we desperately need, especially following the uplist.
This is VERY common when a company announces a r/s, and this won't be the only one. You normally see a flood of these vultures after an uplist, and they're usually tied to shorts trying to shake out the weak hands in order to push down the sp. Many of these so called "law firms" are without brick and mortar locations. If you google their addresses, you'll see empty buildings or store fronts for lease. Again, we'll probably see a lot more of these right after the uplist - it comes with the territory.
BLA submission for HIV combination therapy - Q3 2018
New 8-K just out - Investor Presentation
https://ir.cytodyn.com/all-sec-filings/content/0001193125-18-095062/d560026d8k.htm
Actually, it went to 14+ within a few days.
NEWS OUT: The Reverse Stock Split will be effected at a whole number ratio between one-for-two and one-for-fifteen, to be determined by the Board of Directors prior to the Record Date. The Reverse Stock Split is expected to be effective on or about April 19, 2018, subject to postponement or withdrawal at the discretion of the Board.
https://ir.cytodyn.com/all-sec-filings/content/0001193125-18-088431/d537888d8k.htm
On March 20, 2018, CytoDyn Inc., a Delaware corporation (the “Company”), issued a notice (the “Notice”) to the holders of certain outstanding warrants to purchase shares of common stock, $0.001 par value per share (the “Common Stock”), of the Company, a copy of which is filed as Exhibit 99.1 to this Form 8-K, stating that the Company expects to effect a reverse stock split (the “Reverse Stock Split”) of the Common Stock outstanding as of April 17, 2018 (the “Record Date”), in connection with an anticipated uplisting of the Common Stock to the Nasdaq Stock Market, subject to postponement at the discretion of the Board of Directors of the Company (the “Board”). The Reverse Stock Split will be effected at a whole number ratio between one-for-two and one-for-fifteen, to be determined by the Board of Directors prior to the Record Date. The Reverse Stock Split is expected to be effective on or about April 19, 2018, subject to postponement or withdrawal at the discretion of the Board. The Reverse Stock Split was previously approved by the stockholders of the Company at a special meeting on November 1, 2017.
Yes, I absolutely agree with you that a r/s attracts short sellers, and I, too, would prefer an organic uplist. However, I think the significant increase in shorting is due more to the actual uplist rather than the r/s that gets them there. I suspect we'll see an increase in shorting if/when we uplist regardless of whether it's due to getting there organically or by a r/s. I don't short and never have, but it's my understanding that it's difficult for most shorts to borrow shares for an OTC stock because many brokers won't lend shares for shorting. It will be much easier for them to borrow shares if/when we uplist, but again, it will be much riskier for them by the time we get there.
"And the pps reached a peak right after uplisting and has gone down since then. Imagine that."
I think your comment may be a little too general and assumes we're comparing apples-to-apples, but we really need to look at what actually happened after their r/s, and the reason behind it. I was heavily involved and invested in AVXL prior to the r/s. My average was .25/share and I rode it up to ~$1 prior to the 1:4 r/s, and that all happened within a few months. After the r/s, I immediately rode it up to over $14/share and lost over $500k when it got smashed down almost overnight in a well-orchestrated short attack by AF and his minions, and suspected naked shorting to go with it as well. As I recall, the reason they were able to short it so badly was because AVXL had only one P2 trial going on at that time, and without any near term binary events in their forecast. And unfortunately for them, here we are 2 1/2 years later and they still haven't initiated a P3 trial, so the shorts continue to hold it down. Their goal for uplisting was to attrack institutional investors, but still has had little effect because they're not far enough along in their trials to reduce much of their risk. Whereas CYDY has two P3 trials going on at this time, and one has already produced excellent PE results. I'm not suggesting that "if" we go through a r/s that we won't see some level of shorting, however I think that due to our many near-term milestones and potential binary events, the risk is too high for most experienced shorts, and any downward pressure due to shorting will probably be offset by institutional and retail investors wanting to jump in.
This is just my opinion and based off of my experience with reverse-splits in biotechs, and not just with AVXL. I've been burned many times by a r/s, but I'm now convinced that we'll be better off afterwards because we'll no longer be on the OTC, which will open many doors for those institutions and retail investors who may now be waiting on the sidelines to get in on an under-priced biotech that's mid-way through two P3 trials (and having already met their PE goals for one of those trials), and may be close to announcing their GvHD interim results.
Thanks for your posts, Tom. You clearly have an extensive background with investing, and I always look forward to reading your opinions and TA.
"it looks like they have to maintain $4 for 90 days before uplisting. "
That's not accurate. As an example, Anavex (AVXL) was and still is a pre-revenue biostock that's similar to CYDY, and they announced a 1:4 r/s on 10/6/15 and uplisted to the Nasdaq 3 weeks later. They only had to maintain a daily SP above the minimum for 5 days following the uplist.
http://anavex.com/anavex-prepares-for-uplisting-to-nasdaq-announces-reverse-stock-split/
https://stockguru.com/2015/10/26/anavex-announces-uplisting-to-nasdaq/
Buried down in the S-3:
"Anti-takeover Effects of Delaware Law and our Certificate of Incorporation, as amended
As described above, our Board of Directors is authorized to designate and issue shares of preferred stock in series and define all rights, preferences and privileges applicable to such series. This authority may be used to make it more difficult or less economically beneficial to acquire or seek to acquire us.
Special meetings of the stockholders may only be called by our Board of Directors acting pursuant to a resolution approved by the affirmative majority of the entire Board of Directors. Stockholders may not take action by written consent.
The stockholders may, at a special stockholders meeting called for the purpose of removing directors, remove the entire Board of Directors or any lesser number, but only with cause, by a majority vote of the shares entitled to vote at an election of directors.
Additional Warrants
As of February 22, 2018, we had issued and outstanding warrants to purchase up to 119,705,641 shares of common stock, exercisable at prices ranging from $0.50 per share to $1.35 per share.
Stock Options
As of February 22, 2018, we had issued and outstanding options to purchase up to 10,763,336 shares of common stock, exercisable at prices ranging from $0.34 per share to $2.90 per share."
Saltz - given the size of yesterday's raise (~$10m), I have to assume that it's to give them the required cash to uplist. Knowing it won't last long due to their monthly expenses, I also have to assume we'll get the r/s PR any day now because it's now or never. Your thoughts?
Just my 2 cents worth, but today's share price action isn't uncommon and somewhat expected given last week's rise on no news. However, once the selling subsides and the profit takers get out, I expect a slow and gradual increase in sp. A lot of investors have been sitting on the sidelines due to risk, and today's PE results just all but eliminated that risk. We're on a whole new playing field now, and given the numerous near-term binary events that are in the queue, I think things will now get interesting. I wouldn't be surprised to see this close in the green today, or at least by the end of this week.
And of course, IMHO.
Just FYI but if you sign up on their website under Investor Relations, they'll send you an email at the time they release their announcements. The warrant extension was announced yesterday via email at 5:00 pm ET. No need to call them in the future.
I suspect they're through with enrollment or within a few days given they expect to complete it this month, however what's not clear to me is whether they need to go back to the FDA again to get their approval to lock the trial. I asked Jody about this but she's limited to what she can say (i.e. she can't speak about future plans or events). I also don't expect them to announce when the trial is locked, but rather wait until they have the PE results so they get more bang for the buck. I'm with Saltz and think we'll probably hear something in late Feb. What puzzles me is why they extended the warrant date to Jan 26 if they weren't planning any PRs.
Form 8K just released.
https://ir.cytodyn.com/all-sec-filings/content/0001193125-18-016742/d516237d8k.htm
All sound plausible except #4, however with #1 (PE, RS, major raise -> uplist), I think the major raise will happen before the RS unless most of the warrants are exercised following the PE results. They need a significant amount of capital to qualify for the uplist.
I'm not suggesting locking the trial will entice warrant holders to convert. I'm just saying there's a good chance that if we get a PR before Jan 26, that's what it will be about. I don't think they'll have time for the PE results unless the trial is already locked.
Yeah, I meant 24 weeks for combo - not 48. Too many trials going on.
Yeah, I gave that some thought, too. Prior to their meeting with the FDA, they added 33% over their required enrollment at the time. I'm not expecting them to add 33% again, but I would expect 10-20% (55-60 total). Otherwise, they'll be in bad shape if more than a couple drop out before the 48 week period ends. I guess it just depends on how easy it is to enroll the remaining patients given the relaxed criteria.