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Update Update: Who’s Suing Cytodyn Now And Who is Admitting The Plaintiffs Are Right? (CYDY)

We’re now in mid-December 2020, and thought it would be a good time for an update on one of the more curious stories of 2020. No, not Coronavirus, but rather everyone’s favorite reverse-merger pink sheet Coronacrapper, Cytodyn (CYDY), its klown krew of kreme de la kreme managers including The NaDDir* and the rather interesting lawsuit filed against them by a group of former directors. This particular suit was filed in late April. Missed it? Well, that might not be your fault, as Cytodyn has done its best to avoid disclosing it. Here is the litigation section from CYDY’s latest 10Q, filed in October for the period ending in August 2020.

While they do mention a suit filed on April 29, 2020 against the company, they fail to mention a different suit filed on April 24th, 2020. Which is very strange because Bloomberg News ran a story about it on April 30th. Fear not. We have it for you. Read the unredacted lawsuit the current Board of Directors and the company obviously do not want people to see right here. Catch up on some commentary about it here and here.

The suit concerns a breach of fiduciary duty, bad faith, unjust enrichment, and corporate waste. Specifically, it has to do with a series of stock, option, and warrant grants in December of last year and January of 2020.

Here is a list of the December grants, and the lucky recipients:

And some background on the timing:

These December grants are also the subject of a spring-loading claim. They were hastily granted immediately before the release of some bullshit stock pumping nonsense two days later. Spring-loading is not taken lightly by the Delaware courts, as can be seen here.

The January 2020 grants are also interesting. Take a look at the massive awards they handed out to themselves just a month after pillaging the shareholders in December:

Why else might the company not want to alert shareholders to this lawsuit? Perhaps Paragraph 67 gives a clue?

Or maybe Paragraph 71?

Of course the company will deny these claims, say they are untrue, without merit. Perhaps The NaDDir* will whine and scream and shout that he is being singled out by nefarious forces. Or will they?

Readers may recall that in early May Cytodyn created a “Special Litigation Committee” (SLC) and hired the rather pricey West Coast law firm Wilson Sonsini to represent the SLC and conduct an investigation. We are pleased to report that the lawyers have completed their investigation and we have, as The NaDDir* might say, “a VERY exciting news for you!”

This may be the first time that anyone at BuyersStrike! HQ has seen an internal investigation vindicate the plaintiffs in a suit of this type. Remember, these lawyers are paid to show the company and management are NOT guilty.

At this point it would be prudent for the defendants and the company to settle the suit. But that might not be so easy. Unfortunately for The NaDDir* those shares he issued to himself in December 2019 had already been sold at the end of April 2020. This was disclosed in the infamous Form 144 filing from early May 2020.

The sale of that stock is the subject of a different lawsuit (Case #: 3:20-cv-05909-JLR in the US District Court for the Western District of Washington), which has also not been disclosed to investors. It should be quite interesting to watch. It may be difficult to rescind a grant that has already been sold into the marketplace. Even if The NaDDir* was forced to return the ill-gotten gains, the shareholders still absorb the dilution that has already occurred. Of course, if they had any sense at all, they wouldn’t be Cytodyn shareholders.

*Spelled thusly for a double dose of that sweet sweet stock pimping.

THE CONTENT CONTAINED IN THIS BLOG REPRESENTS ONLY THE OPINIONS OF THE AUTHOR. THE AUTHOR MAY HOLD EITHER LONG OR SHORT POSITIONS IN SECURITIES OF VARIOUS COMPANIES DISCUSSED IN THE BLOG. THIS COMMENTARY IN NO WAY CONSTITUTES INVESTMENT ADVICE, AND SHOULD NEVER BE RELIED ON IN MAKING AN INVESTMENT DECISION, EVER. THIS BLOG IS NOT A SOLICITATION OF BUSINESS: ALL INQUIRIES WILL BE IGNORED. THE CONTENT HEREIN IS INTENDED SOLELY FOR THE ENTERTAINMENT OF THE READER, AND THE AUTHOR.

Update: Guess Who is (yet again) still not participating in the Loserlimab Trial? (CYDY)

While we all anxiously await today’s no-live-q&a CONference call by everyone’s favorite reverse-merger pink sheet Coronacrapper, Cytodyn (CYDY), let’s take a look at the status of their much-hyped “CD12” trial of loserlimab in severe-to-critical Covid patients.

For many months now, Cytodyn’s CEO, affectionately known in these parts as The NaDDir* and his Klown Krew have been talking up potential business in the UK. As early as April 27th, they made claims about starting the process for “Compassionate Use” of loserlimab, and starting trials, in the UK:

Then without much more from the company, this bizarre press release was issued on August 7th. No mention of the trials, and no mention of Compassionate Use, instead Cytodyn claimed they would submit their BLA for HIV and request Emergency Approval in the UK during August:

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Quick Take: What Cytodelusion Actually Died Last Night? (CYDY)

Although few of them might have realized it when they woke up this morning, but for the rabid retail fanbase of everyone’s favorite reverse-merger pink sheet Coronacrapper, Cytodyn (CYDY), today is the day their delusions about being granted an EUA for treating Severe-to-Critical patients with Covid-19 died.

Why? The answer is in section 564 of the Federal Food, Drug, and Cosmetic Act, as explained here:

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Who’s STILL Not Participating in CYTODYN’S Ridiculous Loserlimab Trial? (CYDY)

While we wait for everyone’s favorite reverse-merger pink sheet Coronacrapper, Cytodyn (CYDY), to finally release the much hyped, and delayed-yet-again (see last night’s press release from the Cytocrew here and an absolute howler of stock promoting stupidity here), interim results from their latest trial (sometimes called CD12) of loserlimab (sometimes called PRO140 or leronlimab) in Severe-To-Critical Covid-19, let’s catch up on what the company has been up to the last few weeks.

Since announcing that the interim enrollment milestone was reached on August 25th the company has had several arduous tasks in front of it:

First, The NaDDer* and his trusty clinical trial wizard, Kooosh Doody had to remember that August has 31 days, so they needed to check on whether the last patient was dead or alive on September 22nd. Then they needed to tally up all the mortality events. It took these geniuses eight days, but they did it, and on September 30th they announced to the world that there were, supposedly, 45 deaths in the trial.

Supposedly? Because it seems they weren’t exactly sure, that’s why that little tilde is hanging out there before the ’45’. Those complicated ordinal numbers. The rigors of higher math. After the deaths are counted, the Data Safety Monitoring Committee (DSMC) is usually the team tasked with seeing if the deaths occurred in Group A or Group B, putting those numbers into a spreadsheet (one so simple any 1st semester or AP Stats student could do it in under 5 minutes), determining if there is a statistically significant difference between the groups, making a recommendation, and finally reporting the results.

What should have taken 15 extra minutes on the 30th of September, takes an additional 20 days in Cytoworld.

While all this has been going on, of course, Cytodyn and the CD12 trial have not been standing still, or have they?

Recall that in late August two sites, Eisenhower Health in California and Yale-New Haven in Connecticut, dropped out of the CD12 trial (read more about that here). One might also recall that on August 20th Cytodyn claimed they would start enrolling patients in the UK “immediately”

On September 2nd they backtracked on that claim, but insisted that UK study could now be “officially initiated”:

Guess that wasn’t true either, because on the 30th of September the company provided this update on clinical trial enrollment in the UK:

Fast forward to today, the 16th of October, and a peek at the list of trial locations on both Clinicaltrials.gov and Cytodyn’s own website, show that the September 30th “update” was just another empty promise (polite term for bullshit) from the Cytodyn Klown Krew. There are still no UK sites for the CD12 trial. Both sources show 14 sites, and not a single one in the UK.

Even if progress in the UK has been stalled, the company surely must be chugging along in the USA, right? After all, as The NaDDer* constantly tells his loyal shareholder base “we are in pandemic!”.

How is trial enrollment going? We know from the press release cited above that on August 25th there were 195 patients enrolled. From a depressing (for Cytodyn believers) presentation given by Dr. Harish “Sad Sack” Seethamraju (available here) it was revealed that on September 4th enrollment was up to 220 patients.

Which makes the trial update from the 30th of September from above all the more curious. Why? Look again:

Why would there be no additional patients enrolled in almost a month? Want our guess?

Simple: “Pausing” a trial by stopping enrollment means never having to say it failed….the company can just pivot to the next pipe dream.

All is not lost, however, the Klown Krew has actually been hard at work. They did manage to get the shareholders to approve a huge, partially retroactive, options package for them on the 30th of September. They even filed an S-8 to register those shares later that same day (see here)! And the next day filed a flurry of Form 4s with the SEC to show where the goodies were distributed. Enrollment might be paused, the study might have failed, but The NaDDer* never stops cashing in while double-dosing the retail shareholder base with his sweet sweet stock pimping.

THE CONTENT CONTAINED IN THIS BLOG REPRESENTS ONLY THE OPINIONS OF THE AUTHOR. THE AUTHOR MAY HOLD EITHER LONG OR SHORT POSITIONS IN SECURITIES OF VARIOUS COMPANIES DISCUSSED IN THE BLOG. THIS COMMENTARY IN NO WAY CONSTITUTES INVESTMENT ADVICE, AND SHOULD NEVER BE RELIED ON IN MAKING AN INVESTMENT DECISION, EVER. THIS BLOG IS NOT A SOLICITATION OF BUSINESS: ALL INQUIRIES WILL BE IGNORED. THE CONTENT HEREIN IS INTENDED SOLELY FOR THE ENTERTAINMENT OF THE READER, AND THE AUTHOR.

*The NaDDer

Update: What Exchange Won’t Cytodyn Be Listed On This Month/Quarter/Year? (CYDY)

Remember when, in late July, 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 when this post explained why a Nasdaq listing was a virtual impossibility.

This morning the company issued its latest 10Q, with updated (albeit unaudited) financials, detailing the results of the quarter ending August 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 (CYDYwill not get “uplisted” to the NASDAQ. 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.

The current financials, filed by the company on October 9, 2020 (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 at Paulson probably have many more shitstocks for you). Here is the relevant section:

While Cytodyn has finally flipped over from Stockholder’s Deficit to having positive Stockholder’s Equity, unfortunately for Cytodyn longs dreaming of a listing on Nasdaq, 2.8mm < the required $4mm or $5mm.

There is no way, under these listing standards, for Cytodyn to get a listing.

“But wait,” the Cytodummies may say, “what IF we somehow met the Shareholder’s Equity requirements? After all The NaDDir keeps promising us he can fix it quickly.”

Even then the company would not qualify. Why?

And it is easy to see that if the company applied for a listing today it fails the minimum bid price requirement of $4. One need only look at the price of the stock the last two weeks, let alone 90 days.

“But but but”, cry the Cytodummies, “what about the Closing Price Alternative?” Great question. Let’s examine it,

Under this alternative test, the company needs to meet the lower closing price bar of $2 (which it does) and the Net Tangible Assets test. What’s that? Here’s a definition.

To simplify: Net Tangible Assets = Total Assets – Intangible Assets – Total Liabilities – Par Value of Pfd Stock

Where to find this information? Remember that pesky Balance Sheet? Let’s take another look:

OK, we have our Total Assets of $93,362,000 and our Intangible Assets of 12.959,000.

Our Total Liabilities of 90,594,000.

Plugging those numbers into the complex NTA formula gives us the following:

93,362,000 – 12,959,000 – 90,594,000 = -10,191,000

Ooops! Cytodyn’s Net Tangible Assets are still negative. Last time we checked here at BuyersStrike HQ! -10mm < +2mm. Which means the company cannot use the Closing Price Alternative.

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.

THE CONTENT CONTAINED IN THIS BLOG REPRESENTS ONLY THE OPINIONS OF THE AUTHOR. THE AUTHOR MAY HOLD EITHER LONG OR SHORT POSITIONS IN SECURITIES OF VARIOUS COMPANIES DISCUSSED IN THE BLOG. THIS COMMENTARY IN NO WAY CONSTITUTES INVESTMENT ADVICE, AND SHOULD NEVER BE RELIED ON IN MAKING AN INVESTMENT DECISION, EVER. THIS BLOG IS NOT A SOLICITATION OF BUSINESS: ALL INQUIRIES WILL BE IGNORED. THE CONTENT HEREIN IS INTENDED SOLELY FOR THE ENTERTAINMENT OF THE READER, AND THE AUTHOR.

* Spelled Thusly For A Double Dose of That Sweet Sweet Stock Pimping

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Reader Mailbag – Breakthrough Therapy Edition (CYDY)

Commenter Tom recently asked a very good question. To paraphrase, “everyone’s favorite reverse-merger pink sheet Coronacrapper, Cytodyn (CYDY) had bad news from the FDA but I can not find it on the FDA site. Can you help?” Certainly.

The answer to Tom’s question should be quite illuminating to readers unfamiliar with the FDA, clinical trials, and the drug approval process. Before we begin, it would be helpful to review the Maxims, especially Maxims 19 and 20.

Cytodyn often talks about “Breakthrough Therapy Designation” for loserlimab. Like in this press release from the 13th of January 2020:

So just what is Breakthrough Therapy Designation (BTD)? You can read all about it here. To briefly summarize, it is a stack of forms that a company fills out and sends to the FDA along with preliminary clinical evidence. The evidence must back up the company’s belief that the treatment may show a substantial improvement, on at least one clinically significant endpoint, over available therapies.

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Who Else Is Suing Cytodyn Now? (CYDY)

[Catch up on Cytodyn’s seemingly doomed quest for a NASDAQ listing here, and click here to learn more about who is participating in the much hyped CD12 trial of loserlimab.]

Back in late April, we looked at two rather interesting lawsuits filed against everyone’s favorite reverse-merger pink sheet Coronacrapper, Cytodyn (CYDY). Both of those suits were filed by former insiders against the company and current management.

Just last week another suit was filed against Cytodyn. In this one, Florida Circuit Court of Miami Dade County Case 2020-020074-CA-01 (available here) Shift Media Lab is suing Cytodyn for failure to pay its bills.

So who is Shift Media Lab, and what were they doing for Cytodyn? There isn’t much about Shift on the interwebs. According to the complaint they were engaged to provide “services” to Cytodyn for three months at $25,000 per month.

And just what might those “services” have been? If one looks carefully at Cytodyn’s disclosure statement to OTC Markets, Shift appears in the rogues’ gallery of what can kindly be described as stock promoters.

Is there a term for disgruntled not-paid promoters?

THE CONTENT CONTAINED IN THIS BLOG REPRESENTS ONLY THE OPINIONS OF THE AUTHOR. THE AUTHOR MAY HOLD EITHER LONG OR SHORT POSITIONS IN SECURITIES OF VARIOUS COMPANIES DISCUSSED IN THE BLOG. THIS COMMENTARY IN NO WAY CONSTITUTES INVESTMENT ADVICE, AND SHOULD NEVER BE RELIED ON IN MAKING AN INVESTMENT DECISION, EVER. THIS BLOG IS NOT A SOLICITATION OF BUSINESS: ALL INQUIRIES WILL BE IGNORED. THE CONTENT HEREIN IS INTENDED SOLELY FOR THE ENTERTAINMENT OF THE READER, AND THE AUTHOR.

The Death Tape (CYDY)

One message that bears repeating is that all cults, and all cult stocks, share the same basic characteristics. However some cults are crazier than others, more self-destructive, some cult members more obedient to their masters, more deluded, more willing to hold on to tightly held beliefs, more determined to bring down the supposed enemies of the only true saviors of the world. Learn more about cults and the amazing resilience of false belief in their members here.

Everyone’s favorite reverse-merger, pink sheet, Coronacrapper, Cytodyn (CYDY) is one such cult. Beyond the tacit admission that the company had been lying about enrolling patients in the UK, and obfuscations around their attempts to secure an EUA for loserlimab in the USA, yesterday afternoon’s Cytodyn conference call (replay here) reminded the curmudgeonly staff at BuyersStrike! HQ of one only thing: The Jonestown Death Tape. The NaDDir* was playing the part of Jim Jones, clueless retail shareholders, desperate trial patients and their families playing the part of the members of the People’s Temple.

We can envision the Netflix mini-series now:

The NaDDir*: The vat, with the green leronlimab please. Bring it here so the long-haulers can begin … beg you, don’t, don’t, fail to follow my advice, you’ll be sorry … you’ll be sorry … (unintelligible word) … that we’ll do it than that they do it.

Paid Promoters in the Background: That’s right, that’s right.

The NaDDir*: … Must trust, you have to step across … We used to sing: “this world, this world’s not our home.” Well, it sure isn’t. … We were saying, it sure wasn’t … Really doesn’t want, you’re telling me. All he’s doing is what we’ll tell him. Assure these … Can some people assure these patients of the relaxation of stepping over to the next plane? That’d set an example for others. You set 1,000 people who say, “We don’t like the way the world is ….

Shareholders: That’s right, that’s right.

The NaDDir*: … (unintelligible words) … take our life from us, we laid it down, we got tired. We didn’t commit suicide. We committed an act of revolutionary suicide protesting the conditions of an inhumane world.. …

THE CONTENT CONTAINED IN THIS BLOG REPRESENTS ONLY THE OPINIONS OF THE AUTHOR. THE AUTHOR MAY HOLD EITHER LONG OR SHORT POSITIONS IN SECURITIES OF VARIOUS COMPANIES DISCUSSED IN THE BLOG. THIS COMMENTARY IN NO WAY CONSTITUTES INVESTMENT ADVICE, AND SHOULD NEVER BE RELIED ON IN MAKING AN INVESTMENT DECISION, EVER. THIS BLOG IS NOT A SOLICITATION OF BUSINESS: ALL INQUIRIES WILL BE IGNORED. THE CONTENT HEREIN IS INTENDED SOLELY FOR THE ENTERTAINMENT OF THE READER, AND THE AUTHOR.

Just Who IS Participating in Cytodyn’s Loserlimab Coronavirus Trial? (CYDY)

Our last post (catch up on it here) discussed the August 31, 2020 updates to the ongoing Covid trial run by everyone’s favorite reverse-merger pink sheet Coronacrapper, Cytodyn (CYDY). Together we looked at the strange disappearance of Yale and the complete absence of any trial sites in the UK. Some people complained that the curmudgeonly crew at BuyersStrike! HQ only looks at the negatives swirling around Cytodyn, and not the positives. “Why look at the sites that aren’t there, instead look at the sites that are there.” Spoiler Alert: Be careful what you wish for.

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Quick Take: Who’s Not Participating in Cytodyn’s Ridiculous Loserlimab Trial? (CYDY)

One thing that The NaDDir* didn’t address on last week’s bizarre conference call by everyone’s favorite reverse-merger pink sheet Coronacrapper, Cytodyn (CYDY), was the recruiting status of the much vaunted “CD12” study of loserlimab in severe-to-critical Covid-19 patients.

Recall that prestigious Ivy League university in Connecticut that was participating in the study (but never actually recruited a single patient?). Sure you do. Here’s the Clinicaltrials.gov record of study locations as of mid-August:

On August 31st, the company quietly deleted Yale from the trial location list (and it looks like Eisenhower Health in California dumped CYDY too).

And speaking of trial sites, remember that press release back on August 20th, where Cytodyn claimed that they received authorization to enroll UK patients, commencing immediately, into its ongoing Covid-19 trial?

Go back and review the list of trial sites as of August 31st, available here. Interesting that there are no UK sites listed. Not one. On the conference call last week, The NaDDir* did make some curious comments about UK trial enrollment:

“We received great news today. UK ethical committee approved CD12 study to be conducted in the UK. Now, the study can officially be initiated. Please also see our MHRA comments below”. They have recommended, CytoDyn to resubmit the CytoDyn CD12 COVID-19 study to the urgent public health, UPH scheme.”

Was the company lying about being approved to begin recruiting UK patients in the August 20th press release? It seems so. And exactly why did the company need to resubmit the study? Was it really because wink wink nudge nudge the UK health authorities love it so much? Or is it (much more likely given Cytodyn’s history), because the original filing was deficient in some way? Or maybe the MHRA (like the FDA with Cytodyn’s pathetic HIV BLA) just wanted a Double Dose of The NaDDir’s* sweet sweet regulatory filings?

THE CONTENT CONTAINED IN THIS BLOG REPRESENTS ONLY THE OPINIONS OF THE AUTHOR. THE AUTHOR MAY HOLD EITHER LONG OR SHORT POSITIONS IN SECURITIES OF VARIOUS COMPANIES DISCUSSED IN THE BLOG. THIS COMMENTARY IN NO WAY CONSTITUTES INVESTMENT ADVICE, AND SHOULD NEVER BE RELIED ON IN MAKING AN INVESTMENT DECISION, EVER. THIS BLOG IS NOT A SOLICITATION OF BUSINESS: ALL INQUIRIES WILL BE IGNORED. THE CONTENT HEREIN IS INTENDED SOLELY FOR THE ENTERTAINMENT OF THE READER, AND THE AUTHOR.