Tendering all warrants and selling no shares.
As a result of participating in many Pauslon raises, I have accumulated warrants to purchase hundreds of thousands of CYDY shares at prices ranging from $.50 to $1.0, that expire between June 2020 and January 2023.
I also have hundreds of thousands of shares I own outright.
Although I have reservations about the CEO, I have decided to tender all of my warrants, and hold onto all of my shares.
My reasons for doing so are as follows:
1. Dr. Pestell is all-in.
If someone as brilliant and accomplished as Dr. Pestell is willing to bet his future on Cytodyn, I am willing to bet at least part of my future on Cytodyn as well.
2. Combo approval appears to be a lock.
Although nothing is certain when the FDA is involved, all signs point to combo approval within the next 12 months.
While combo is not the holy grail of HIV treatment, it is a step in the right direction, and gives the company credibility.
3. Monotherapy results appear promising.
Mono would be the holy grail on HIV treatment, as it represents a great improvement over HAART.
The 80 to 90% efficacy shown in trials to date, with varying dosages of leronlimab, and the utter lack of toxicity and side effects, suggest that monotherapy approval is likely at some point.
4. Preclinical results for cancer also appear promising.
Dr. Pestell says he thinks leronlimab may prove to be an effective treatment for vaious types of cancer as it blocks metatastic cancer cells from entering the CCR5 receptor. In that Pestell is a world acclaimed scientist in this area, I defer to his great expertise.
5. Pestell's prostate test.
If Pestell's prostrate diagnostic test works, as he claims it does, this alone is worth more than the current market cap of Cytodyn.
6. The early results of Retts and GVHD research suggest these other indications could also possibly be treatable with leronlimab.
I know that leronlimab is starting to sound like snake oil when one considers all indications it could possibly treat, but maybe, just maybe, it is such a miracle molecule. However, even if leronlimab only treats HIV or cancer, or Retts, or GVHD, it will still be of great benefit and worth.
7. Non-dilutive financing is likely.
I know Pourhassan has repeatedly promised that non-dilutive funding is imminent, and I know he has been wrong in making such promises (along with many others). However, it is logical to assume that if leronlimab is safe and effective for treatment of HIV, cancer, Retts, GVHD, or any other indication, some company will see the wisdom of a partnership or licensing deal with Cytodyn.
8. Cytodyn will eventually be bought out.
For all of the above reasons, it seems more likely than not that some company will purchase Cytodyn; the big questions are when, and for how much.
9. The negatives; a weak CEO.
Although I strongly believe Cytodyn would be better of with a more seasoned CEO, who has greater competence and street cred than Pourhassan, the science is so compelling that I think the company can overcome this.
In addition, I am heartened by the recent additions to the team that I think will aid in obtaining non-dilutive financing, and eventually a buyout.
For all of these reasons, I have decided to tender all of my warrants, while retaining all of my stock.