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Re: kevindenver post# 200702

Monday, 01/17/2022 1:34:04 PM

Monday, January 17, 2022 1:34:04 PM

Post# of 232922
The SEC/DOJ scenario looks pretty interesting.

1. SEC is preventing CYDY from doing secondary offering to raise much needed cash. The didn't approve the S-3 last year to allow a secondary, and now that they are under investigation they are not likely to approve one. SO the company is going to have few options for raising cash.
2. SEC/DOJ actions against management -- banned from future management and Board of a publicly traded company. Perhaps indicted too. This will likely happen whether the company goes BK or not.
3. Cytodyn is bleeding out its last cash -- can't pay Samsung past due bills (~$13 mil) and the $22 mil due end of January, and the $6.5 mil surety bond and the ~$50 million vulture fund debt (mostly due this year), and the legal expenses and the big payroll they have accumulated.
4. May bring on BK to try to protect against vendor collections. If Cytodyn can't pay the surety bond then they have a settlement to get their day, they may have to pay more (Amarex claims ~$13 mil owed).
5. If Fife isn't paid, the BK means they claim all non-IP which is remaining cash, sell furniture and perhaps clinical data (not IP).
6. Some bottom feeder biotech/small pharma may buy LL rights. They certainly don't want the company just the drug, perhaps inventory from Samsung and the clinical data (from Fife?).

This could be the wind down of the company. This scenario means shareholders get shafted as all assets are collateral for outstanding debt.
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