Replies to post #4168 on Cytodyn Inc (CYDY)

[Resumeblank]

"#3 If we get acquired after FDA approval we can expect an offer much closer to $12-18 billion (2-3 times market share), not $6 billion."

12-18 billion? That's a bit of a stretch.

The general rule of thumb for biotech buyouts is that most companies are only willing to pay what they think they will make in sales in the first 5-year period that the drug goes to market.

I think 1-3 billion is a much more appropriate estimate, with 5-6 billion being the very high end of things.

That being said, that's still a lot of money for the shareholders if a buyout happened. I'm looking forward to it all going that smoothly.

[Amatuer17]

Look at the same document - page 18

Outstanding exercisable warrants/options - 58.349 million
Intrinsic value -7.45 million

These outstanding shares will be due during BO - total outstanding will go to 176 million - while exercising it will give only $ 7.45 millions to company - like nothing

So the addition of this high no of shares will not add multi millions to kitty

This is the serious dilution I was talking about.

If this dilution came from secondary offering priced at say $1+ , you would get the high dollar you are talking about.

If you wait for latest 10-q we will see latest numbers - which are somewhat higher.