Cytodyn Inc (CYDY)

[Saltz]

For the record NOBODY is exercising warrants at the current SP. The warrants are in the red and have 5 year expiration from the date of the private raise. Nobody in their right mind would pay .75 to convert warrants to shares until they are profitable. What is happening is the shares that were purchased to gain the rights to the warrants are being dumped even at a slight loss and the warrants are being retained. Not everyone chooses to dump their shares. I for one have been through three private raises and have kept all my shares in addition to the warrants.

Example:

Purchase 100k shares at .75 in private raise. For that investment you are awarded 50k warrants that can be converted to shares at a cost of .75 per share within a 5 year window. So it's simple for the Warrant players. They find deals where they can pile up warrants at no cost or even a gain by selling their shares to recover their investment.

For the moment the open market investors are eating the Warrant players zero risk play. The good news is when approval and commercialization becomes more certain the game will flip flop and there will many more buyers than sellers. In addition warrant convertion will ramp up because of the positive gap between warrant price and SP. At that point CYDY will be reaping .75 (or $1.00 for some of the warrants) for every warrant converted. I don't know exactly how many warrants are out there but it is in excess of 50 million.

I find it very hard to believe that with what is in the pipeline that we will not see this cycle change in 2017.