Replies to post #8429 on Cytodyn Inc (CYDY)

[5TOP]

Regarding uplisting:

...is just a way to play with numbers, make the stock seem worth more than it is...

I think you are referring to a reverse split. (Which we would require in order to uplist right now) But uplisting just changes the exchange that the stock is traded on, it doesn't change any numbers. And the only numbers a reverse split affects are the outstanding shares/warrants and the share price accordingly. But it doesn't affect the appearance of the stocks worth as that is calculated by the market cap, which of course remains unchanged.

...plus to give the shorts a veritable field day to knock the stock all the way down to the price it was before the uplist took place.

In my opinion this is a popular misconception. Im not saying it never happens but in my experience it happens far, far less than what people believe. I have seen companies uplist after an large run up or experience a large run up after uplisting and then have seen them get crushed by shorts but that is only after a big run. Virtually every clinical stage bio gets kicked in the teeth by shorts after a big run up, regardless of uplisting or reverse split. However we haven't seen a run up of any kind lately. Dont get me wrong, im not saying their is NO risk. I just think the benefits dwarf the risks. The one caveat I would insist on is uplisting with strong news to accompany it. P3 data would be perfect.

Here are the major benefits I see for uplisting:

-Access to institutional investment capital. Right now there are literally TRILLIONS of dollars held by institutions that are unable to be invested in CytoDyn due to our exchange status. The overwhelming majority of institutions are prohibited by their own regulations from buying any stock traded on the OTC exchange. Institutional investment would not only help to boost and stabilize the market cap but would present a whole slew of new options and opportunities for raising cash and it would also bring in more retail investors.

-Access to retail investment capital. There are billions of dollars in the retail circle that wont touch OTC stocks. Why? Because the OTC is a virtual bone yard for publicly traded companies. Statistically its something like 95% of stocks traded on the OTC exchange are money losers. This is why anyone who trades OTC stocks (PROFITABLY) will laugh at you if tell them you are using a "long term strategy".

-Access to long term investors. (For above reason.)

-Greater exposure and visibility. Many analysts and KOL's in the market space wont even look at a pink sheet, let alone cover one. And many websites dont offer their coverage/services for OTC stocks either. Someone mentioned stocktwits the other day. Thats a perfect example.

-Major exchanges are better regulated and more transparent.

-Market makers that aren't pre-programmed to view every rally as a pump and dump, thus building a short position against it. (This point is speculation on my part but I do lean towards believing it based on industry professional accounts)

Anyway, I have yet to hear a convincing argument on the benefits of trading OTC. Actually I dont think ive ever even heard an argument for it at all. I have heard things like "we would have to pay so much more in fees to trade on the NASDAQ" which is true but were talking maybe a couple hundred thousand for an entire year. And that is literally a drop in the bucket for a company that has an approximately $2-3mil a month burn rate. Mostly ive just heard a lot of hemming and hawing from people but nothing substantial to back it up. No offense to anyone, this is all in my opinion of course.

We'll see how it all plays out. I dont expect management to perform a R/S in order to uplist, as they do not seem to have a desire for that. If I was in charge I would have done it years ago.