Cytodyn Inc (CYDY)

[Amatuer17]

R/S is not good for founders if they own large numbers.

For SH - it depends when they purchased the stock.

For company - it may turn out to be good many times.

The advantage for company

1. The number of o/s shares go down substantially - for 1:10 r/s - CYDY o/s shares will come down to less than 35 million. This gives good impression

2. The price pops up and allows uplisting to Nasdaq or NY

3. With increased price and Nas listing - they can do secondary and raise money - allows less dependence on toxic financing

4. If good news comes - the SP remains in decent shape

With bad trial results and bad mgmt - this can get really bad (look at NTRP - AVXL)

It was bad for SH who bought before r/s but not as bad who timed in selling the shares immediately after uplisting bought again later.

For the current condition of CYDY - I would approve r/ s but I do not know if they meet other criteria for uplisting.