Cytodyn Inc (CYDY)

[Grip it and Sip It]

I can only speak from experience being with two companies that were purchased by private equity groups. Basically, an announcement of an agreement will be made with the applicable SEC filings. That would show the price and other specifics, for example is it cash and stock, straight up stock deal or all cash.

Once that occurs, these shares will rocket to close to that price. You can sell your shares at any time during the DD and closing stage. A lot of people play the game of arbitrage buying and selling huge blocks with a few pennies variance.

It's risk/reward. Once you get a good price, you can sell and be guaranteed the amount you sell for. If you hold out, you risk the deal falling apart.

Generally, these discussions begin over "what ifs" between companies, then an NDA will be signed and some sort of exclusivity. I'm certain that when it comes to this, Gilead will also probably sign on to a large settlement price if they choose to back out without cause (financing, they found something that wasn't disclosed etc)

For me, I hope it's a straight up cash deal. I don't want to exchange "x" CYDY shares for "y" GILD shares because they have other issues.

Hope this helps. Keep in mind, pigs get fat, hogs get slaughtered! I sell at a discount if it's guaranteed.

Grip