Cytodyn Inc (CYDY)

[Saltz]

For many years investors that participated in the Paulson raises dumped shares that were purchased to gain warrant rights. This type of investor eliminates risk by only playing the warrants. This held the SP hostage at under $1 for years because their was an endless amount of shares on the sell to meet any upward SP movement.

These investors I’m speaking of are unlike the Longs here on this board that participated in those same raises. We hold our shares and opt out of warrant conversion until we either decide to sell or the warrants are expiring.

In my case having participated in three warrant backed Paulson raises I have converted all my warrants to shares. One conversion was on warrants that were going to expire so I was forced to or forfeit the warrants. The major portion were exercised through the very advantageous Tender Offer last summer that was a deal of a lifetime. I had warrants ranging from .75 to 1.20. The TO was a short window that allowed exercising of ALL existing warrants at .40 plus 1/2 share for doing so. This translated to a cost of .266 per share. Keep in mind the stock was trading at .35-.40 at the time so it wasn’t a slam dunk. I know many that decided not to participate. I know others like Lawman that went all in like I did. Hind site is 20/20.

I bring this up so that investors here understand the warrant conversion equation. NOBODY exercises unless the warrants are either expiring or they are ready to sell and cash out.

The bottom line is when warrants are exercised those shares are going to be sold immediately unless the holder was forced to exercise because they were expiring.

Uplisting and consistent high trading volume will eliminate this equation. The warrants will eventually be exercised and no longer an overhang on SP movement. Also some of these warrant holders may switch to Long positions as the story has become compelling. In addition much of the investor base has been turned over in the last couple of months—Exchanging the warrant investors for retail investors that believe in the story that are in at $2 -$3. That is where we are headed. Weeding out the warrant players for real investors in the story.

The positive is the $ from exercising warrants goes into CYDY’ bank account.