Cytodyn Inc (CYDY)

[kgromax]

Excepted...two key foundations of your post are wrong.

(1) The ratchet term has no relationship with the loan default. It is independent. The ratchet is triggered if the company sells shares to ANY investor below $10. Which occurred, at $3.36 in nov/december. There are however ADDITIONAL terms that deal with a loan default,on top of the ratchet, and they would be very bad for Cytodyn. They increase the loan principal, not only once but several times (distinguishing major from minor defaults, one penalty per event of default, the counter can add up pretty quickly).
This is all written in the loan contract synthesized and attached by the company to its SEC filings, all investors should really read it in detail. This explains who is in control of their capital now.

(2) The toxic lender effective conversion price is, consequently, not $10 but much lower. The company owes $7.5 million every month to the toxic lender. Last month (December) they paid it in shares, $3.4 a share. It's strangulating the company and that's not a surprise, that's what John Fife (the man behind Iliad and Streeterville capital) has done with every company before. In January again they owe $7.5 million, etc...

No need for Nash strategy games when the company is a fraud, its product is saline water, its "science" fake, and its financial statements show a bankruptcy coming, and its only financing is through toxic loans.