I tend to agree, although I think the "ratchet down" price is $3.40. I base this on the December 18 s-3, in which 2,205,882 shares were registered in order to achieve a $7.5 million reduction in the notes payable. This is exactly $3.40 per share.
I think the private sale that you reference may have been unregistered shares and therefore may not have triggered the ratchet. CYDY could not possibly be dumb enough to trigger the ratchet for just a $1 million sale.
I have one question, however......they are using some tool called a "partitioning" of notes to execute these conversions and repayments. I wonder if somehow Fife has agreed not to fully and automatically claim the ratchet was triggered, and this is a negotiated settlement for "partial" ratchets. (Maybe the private sale you mentioned was in the grey area for triggering the ratchet and this was the resolution. More likely, I think they were forced in to the $7.5 million principal reductions and $3.40 was the approximate price at the time the December payment was due.)
I also expect that there are more SEC filings coming very soon, as another $7.5 million is due, which will likely result in a filing similar to the December 18 filing. Will be interesting to see the price on that one. Does is float with the stock price, or will it be $3.40 again?
I also agree that dealing with Fife and his ilk is very, very dangerous and the companies almost always lose. Frankly, the only hope here is trial results that are great, which result in the ability to sell the drug. This wipes away all debt and financial sins, even if diluted via a $3.40 price (which isn't really all that bad).
The other hope is "good, not great" CD12 results which result in a "good, not great" buyout of the company by a larger company that feels it can effectively execute future trials and bring Leronlimab to approval. Maybe this type of buyout is somewhere between $3 and $12.
But, I don't think they can string along this pile of debt much longer. It is currently over $50 million and if any defaults are triggered, it grows like crazy.
Last point to SF Anon. The s-3 filing on January 15 is NOT evidence of conversion by Fife. It is simply a registration that was required under the terms of the November 10 note. The 10Q says the registration was required within 5 days of the 10Q date, which was January 8. The $21 million debt has NOT been retired and converted to stock.
AI
