Cytodyn Inc (CYDY)

[woodenbear]

Good discussion on the board. I too find myself becoming anxious on why the PR has not been made, but as others have pointed out there is a strong and logical but more importantly a financial argument for waiting for data to PR. It's just 4 extra weeks for investors to wait and that's 4 extra weeks of mono enrollment. In management's mind why would they be concerned about investor sentiment if they know they have an ace in the whole. While there is always the possibility results aren't as optimistic as hope (especially given the requirements for enrollment in combo), management's single goal is to get the best price in a BO. As we all know valuations are complicated and getting the best price takes a lot of strategy.

We all know this is a binary event, and we are all invested bc of the amazing asymmetric payoff of that event. Yes, there is likely more dilution coming (possibly up to 40-50%) but the potential for winning is multiples of that. I'll take those odds any day on a company that has shown so much potential. I'll take a 50% dilution in order to get a 10,000% return. Dilution is part of this game and we shouldn't miss the big win in fear of it.

Also, I wanted to clarify one thing about an argument made for why funds were raised using convertible bonds. Someone stated that this was a roundabout way for insiders to have claim to the assets if the company goes BK. I'm not a BK lawyer but that's not how BK proceedings work. Bond holders have no claim to ownership of company assets only to the return of their investment. They get paid out from the liquidation of assets, which is administered by the court. Also, the company only goes under if the drug doesn't work... in that case why would the insiders want claim to those patents??