Here is my sense on the 25 million shares, take it or leave it.
There is nothing that I know of to indicate that the 25 million shares is for management to reward themselves. Maybe yes, maybe no. But most shareholders are generally not privy to internal company plans or discussions, and NP explained the shares were (at least in part) for attracting talent ("employees" and "management"). Maybe NP has additional ways in which he wants to use the shares (not necessarily self enrichment), and that is to be expected. Even during today's CC, NP said he was always being honest with the shareholders.
My interpretation is that NP has plans to continue growing the company, and wants the 25MM shares to effectively do so. At a recent CC, I believe NP stated the number of employees at CytoDyn to be 17. For comparison, in 1991 I became employed at a small company (about 5 or 6 employees), which would later become one of the fastest growing companies in the US (today, a multi-multi billion dollar conglomerate). The workload in such a situation is enormous, with each employee contributing 24/7. You eat, think, and breath company goals. Everything else suffers, and marriages end in divorce (The CEO and VP of Engineering both died in a company plane crash).
While what Adam Feuerstein did has made opportunities for others to buy in cheaper, it severely hurt the company, and the pockets of shareholders. NP made references to this in today's CC; he wants to get funding at higher valuations, rather than low. Of course, any CEO would. But Feuerstein and other short sellers have made doing so currently impossible. So management now introduces another way to attract talent. When I say talent, that means people who are especially well trained/educated, and exceptional at what they do, not the kind of place holders that are found in so many jobs, these days.
Growing CytoDyn would increase company worth, and thereby shareholder value. Whether or not NP wants to use the 25MM shares only for growing the company, a buyout offer still remains an option. Of course, a buyout would make a lot of people happy, and a lot of people unhappy (including me - I don't mind waiting a few years for a $500 share price).
25/500 (1/28) is not a lot of dilution - 5%, but the total of shares + warrants is more than 500 million, so the % of dilution is actually even less.
I understand there either are, or might-be, better ways to pad the company coffers for future financial needs. I know little about those methods, so can not criticize management for not using them.
Consider your own opinions and goals, and vote accordingly.
AI
