Remember when, in late July 2020, everyone’s favorite reverse-merger pink sheet Coronacrapper, Cytodyn (CYDY) told investors that they expected to be listed on the NASDAQ within 5 to 6 weeks?
Perhaps you recall back in August 2020 when this post explained why a Nasdaq listing was a virtual impossibility. Or in October 2020, when this post explained why it was still a virtual impossibility.
This morning the company issued its latest 10Q, with updated (albeit unaudited) financials, detailing the results of the quarter ending November 2020. No matter the spin that The NaDDir* or CFO Mike Mulholland tries to deliver, the dream of a Nasdaq listing remains a ludicrous fantasy. Just another carrot to dangle in front of the deluded cultists.
And with updated financials from the company, it is time to update our BuyersStrike! prediction. Are you ready? Once again:
Cytodyn (CYDY) will not get “uplisted” to the NASDAQ anytime soon. Not to the Nasdaq Capital Market, not to the Nasdaq Global Market, and certainly not to the Nasdaq Global Select Market.
Why not?
Simple math. Here are the listing standards for the Nasdaq Capital Market, the least stringent of the Nasdaq tiers:
A company seeking to list must meet all of the criteria under one of the three standards. Unfortunately for Cytodyn, it still fails to meet the requirements for all three standards. Remember that the listing criteria are based on the most recent audited financials, filed by the company in August 2020.
The current financials, filed by the company on January 8, 2021 (available here), are unaudited. But even if we pretend that these figures are audited, Cytodyn still fails the Stockholder’s Equity test. That information is on the Balance Sheet which can be found on page 3 of the recent 10Q (Don’t know what a Balance Sheet is? Don’t know what Stockholder’s Equity is? Well then, you are PERFECT for Cytodyn, and the bucket shop brokers and paid internet shills pushing Cytodyn shares probably have many more shitstocks for you). Here is the relevant section:
As Cytodyn is back to having a Stockholder’s Deficit instead of having positive Stockholder’s Equity, the dream of a listing on Nasdaq remains a fantasy, -$6.5mm < the required +$4mm or +$5mm.
Of course, the company knows all of this (and now you do too). Any spin they dish out about a potential listing is misleading hype designed to keep their shareholder base dreaming.
There are lots more nuggets in the 10Q, it is highly recommended reading. Here’s one:
The company is now disclosing the April 24th lawsuit by the former directors that they so conveniently left out of the previous 10Q. Perhaps the Klown Krew have been reading the blog?
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