Cytodyn Inc (CYDY)

[Saltz]

While I would much prefer avoiding a R/S it is a logical option the company must have the power to initiate.

Management is not going to R/S unless they get a green light to Lock and Unblind by the FDA on Oct. 12 followed by a PR three weeks later confirming Combo PE was a success. After those two events it's all about where the SP is. Will we get a bump to $1.50 or higher, or lower - nobody knows. Regardless, IMO this is where the R/S is going to be timed. They will split with a ratio to get to $6. This allows for a $2 cushion to stay above $4 on the Nasdaq. Meanwhile the boxes will be getting checked as they work through BLA. The P3 Mono will be filling enrollment and Tony will be pushing the fact that Pro-140 is going to make it to market at the very least as a Combo option with the increasing possibility of Mono therapy approval.

On the other hand if the FDA gives a yellow light on the 12th and wants more patients that's going to change everything and create a much more costly environment to raise $'s because the SP is going to drop. I really don't want to think about that possibility but this is the FDA. It won't sink the ship but it will be costly if it means much of a delay.

Consequently, IMO the most important events are not the likelihood of a R/S but the outcome of the Oct. FDA meeting and then the results of the Combo Trial which will determine the momentum and immediate outlook for Pro-140.

In addition I don't understand what Tony should be doing differently to effectively get Pro-140 into a buy out position. He can't control the FDA or the SP. All he can do is navigate the approval process- something he understands quite well. He also understands the HIV space and what it's going to take to get this company sold.

I would love to be a fly on the wall at the Oct. 12 meeting. Guess we will have to wait until the PR on the 13th. The SP that Friday morning will tell the story. Even with a green light from the FDA I don't expect much upward SP movement because the real news is the Combo PE data which would come three weeks later.

GLTA