Cytodyn Inc (CYDY)

[ohm20]

If this deal isn’t done, we will have about 700M outstanding shares with a price of about $.15

Without a deal and a soft launch we would need $60 million to revenue. With Paulson raises at .15 that would equal 545,454,545 (how palindromic) additional shares. Minus the 50 mil we have on hand, total shares 1.2 bil.

With deal and $4 mil cash burn a month we're at 800 mil shares.

No deal we retain 89.5% net sales after royalties. With deal we only retain 39.5% net sales after royalties. Given a 20% cost for manufacturing and distribution we're still at 69.5% revenue. 56% premium to the revenue with a 50% increase in share price.

The positive with no deal is we don't have entanglements regarding other indications and have a sales force already in place. We can also do a share buyback before the share price really tales off.

So no deal does not spell doom. It just means a longer wait until the price appreciates significantly.