Cytodyn Inc (CYDY)

[fred198484]

You are right in that it appears the current offer has not yet closed. But you have to admit it is not exactly a hot, oversubscribed offering. It is perfectly clear from the weak previous offering and slow start to this one that the company is in financial difficulty. And that means shareholders are at risk. I have to credit management with being able to hold things together so far but they really need to pull a rabbit out of their hat at this point to keep current shareholders from getting hammered.

One reason the current offering may be going slowly is that potential buyers might reasonably be asking why they should buy under the current terms when insiders got to buy a more attractive deal on the last offering?

If they raised the whole $15 million at the current price, that would have to be thought of as a great victory as the dilution would be relatively minor in relation to the consequences of the money not being raised or it being raised at a much lower share price (thus much more dilution).

The company actually faces two binary, if related, events. They need to get a successful meeting with the FDA on 10/12 (and who knows when the results of that meeting will be finalized). And they need to raise a lot of money to keep operating. If they fail at either CYDY shareholders are toast.