Cytodyn Inc (CYDY)

[ClosetInvestor]

“Assuming they get the additional 350m shares approved, it only equates to ~$140m (at the recent average of .40/share).”

Your estimate isn’t close to an accurate representation considering the terms of the most recent raise.

Per the 8K from June 30th, the most recent Paulson raise consisted of 1 share and 3/4 warrant per unit at a cost of .255 per unit.

“Each unit consists of one share of Common Stock and three-quarters of a warrant to purchase one share of Common Stock.”

https://www.cytodyn.com/investors/sec-filings/all-sec-filings/content/0001558370-22-010484/cydy-20220624x8k.htm?TB_iframe=true&height=auto&width=auto&preload=false

CYDY sold 84.5 million units, which resulted is the issuance of 84.5 million shares and 63,375,000 warrants. That’s a total of 147,875,000 shares issued for a net of $19 million to the CYDY ($21.8 million minus Paulson’s 13% cash fee). CYDY also owes Paulson another 19.4 million warrants for the transaction (13% of the total stock sold including warrants), which will come out of the 350 million that’ll be approved this month.

With the above information from the 8K, we can estimate the potential cash CYDY can raise using the 350 million shares. I’ll use 300 million as an example.

At a similar cost per unit, if CYDY sold 171,500,000 million units (1 share plus 3/4 warrants), they would net around $43 million in cash. This would require the company to issue 300 million shares total. Another 39 million would be required to cover Paulson’s 13% fee.

Considering CYDY owes Paulson 19 million shares, leaving only 330 million remaining, I’d say they can only use 250 million to raise funds. The other 80 million is needed to pay Paulson for fees, for compensation and the rest for a rainy day or a trip to London.