Cytodyn Inc (CYDY)

[Saltz]

The only way to entice warrant holders to convert is to reduce the price enough for it to make economic sense. Lowering the bar to 50 cents should provide enough cushion between the increase in SP on good news and the one month .50 warrant sale. Any higher and I think most warrant holders would pass. It will be interesting to see how many that hold warrants at .75 will convert. Those that have warrants at 1.00-1.35 will be more enticed as the math makes it difficult to resist. The reason I think this is such a wise move by the company is they have created an opportunity to raise money on warrants that would have otherwise been held until a buyout when there is no need to raise cash. The question now is how much will this offer raise? This unexpected move could turn out to be genius.