I have said in the past, the time to buy is after the last big dilutive offering the company will need to do to get to cash flow breakeven. This is a big dilutive offering for sure. While this is still a wise step by management, it is probably not close to being the last big dilutive offering. On the other hand, they would not be doing this unless they had some good news coming out shortly where it would be foolish not to take the company up on its offer. So, perhaps the news will be good enough to mean the low for the stock will have been put in even when new dilutive offerings come in the future. $25 million is not enough money to get to the finish line and they are likely to not get more than $15-$20 million out of this offering (people are busy during the Christmas season and many of those warrant holders probably long ago stopped thinking about CYDY). Even so, if the news is good enough, the stock will reflect that and we may never see $0.50 again. So, if those warrant holders are smart, they will pay attention and take some time from their busy holiday schedule and get the paperwork in.
The big question before doing that is whether the data is going to be good enough. I have to believe it will be good enough based on history but why price the warrants at just $0.50 if that's the case. If the stock jumps to north of $1 on whatever news is to come, they could have set the price higher. Does $0.50 mean the news is not going to be all that great but just kinds great? Or does it reflect the desire to clean up a whole lot of warrants by making you a deal you can't refuse? We will know soon enough. By the way, apparently, there are still going to be 19 million warrants outstanding after this, even assuming everyone participates, so not all the warrants are being eliminated.
