Cytodyn Inc (CYDY)

[Borel Fields]

Dilution is horrific, but finite. Science will dominate.

Whenever this stock crosses above $2.50, it hits the “wall of warrants.”

Per the 10-Q, the share count mid-January was 430m, 470m on Feb29 and 500m on Apr06, with another 140m warrants still out. Really nasty, but finite.

Absolute worst case, if they all exercise, share count will go up to nearly 650m, up about 50% from mid-Jan, when the share price was just over $1.00.

So, effectively, if you bought 1.5 shares in January for $1.50, you have enough shares to 100% offset maximum possible dilution. Not as good as a $1.00 cost basis, but not bad.

Using a w.a.g. of 80m-110m of warrants still out Apr21, we are getting toward 15%-20% dilution remaining to maximum.

BTW, even at $0.65/shr (per 10-Q), exercises will give the company plenty of cash – no new fundraising should be required.