Cytodyn Inc (CYDY)

[trader59]

It isn’t a distortion. Look at the gross proceeds from the sales of the stock. Even if the taxes were pertinent to what he did, the tax would be on the profits on the stock, his capital gain, not the gross. He sold $15.7M, the company got $6M, which means that Nader profited $9.7M. If taxes even matter, he gets about $6M post tax.

On the other hand, $6M to the company would have required dilution of only 1.85M shares at the weighted average of $3.25 had that been done instead of him cashing in his warrants. Instead, he dumped 2.5X's that into the float. He likely believes this price is good for him to sell his stock at.

His profit is the key, the gross of $9.7M to him. He sold his stock for a huge profit.