Cytodyn Inc (CYDY)

[fred198484]

The 10-K highlights the many, many challenges the company faces, with future financing taking center stage as I have noted many times in the past. But there are certainly many other challenges for CYDY as well. PRO 140 is a good drug and it should allow the company to meet those challenges but it will still be quite an adventure getting this company to the finish line.

I also had one other thought that shareholders should consider. There is now $5 million in debt due in January 2018. A portion of that is owned by the CEO. I suspect the rest is owned by friends of his. Should shareholders be concerned that the strategy may be to let CYDY go belly-up and then the debtholders get the company's assets while shareholders and warrant holders get wiped out? I doubt this is the CEO's first objective as I suspect he is a honorable fellow, but it is likely his back-up plan if the company is unable to raise the needed cash. If so, he might not have been taking as big of a personal risk as we first thought when he bought the convertible bonds.