Cytodyn Inc (CYDY)

[fred198484]

So, now we have two failed offerings in a row. If the bulls are not freaked out now, you never will be. The company does not have enough money to continue. How is it going to get the money it needs to complete its trials? Hopefully, some pro-HIV patient group compels someone to put the money up. Maybe some kind of foundation? Charlie Sheen might be able to help and he has an incentive to do so. But it is obvious the company needs to find a new source of funds and these delays and open questions with the FDA are not helping them at all. Had the PE results been out by now, it might be different.

It is entirely possible the money just raised will go to meet bills already incurred. It is white knuckle time. But I have to believe PRO 140 does not just evaporate into thin air. Some financial solution will be found to keep the drug going but it might not be one that does anything for shareholders.

Also, did you see the part in the prospectus where the proceeds of this offering could be used to pay down debt? That may be trade debts the company has incurred as I indicated above or it might be paying off the some of the convertible debt Tony and others bought. If that happens, then you know the end of the road has been reached for shareholders.