S-3/A
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As filed with the Securities and Exchange Commission on October 19, 2016

Registration No. 333-213866

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

Amendment No. 1

to

FORM S-3

REGISTRATION STATEMENT

UNDER

THE SECURITIES ACT OF 1933

 

 

CYTODYN INC.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   75-3056237

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification Number)

1111 Main Street, Suite 660

Vancouver, Washington 98660

(360) 980-8524

(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)

 

 

Nader Pourhassan, Ph.D.

President and Chief Executive Officer

CytoDyn Inc.

1111 Main Street, Suite 660

Vancouver, Washington 98660

Telephone: (360) 980-8524

(Name, address, including zip code, and telephone number, including area code, of agent for service)

 

 


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Copies of all communications, including communications sent to the agent for service, to:

Michael J. Lerner, Esq.

Steven M. Skolnick, Esq.

Lowenstein Sandler LLP

1251 Avenue of the Americas

New York, New York 10020

Tel: (212) 262-6700

 

 

Approximate date of commencement of proposed sale to the public: From time to time after this registration statement becomes effective.

 

If the only securities being registered on this Form are being offered pursuant to dividend or interest reinvestment plans, please check the following box:    ¨
If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, other than securities offered only in connection with dividend or interest reinvestment plans, check the following box:    x
If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.    ¨
If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.    ¨
If this Form is a registration statement pursuant to General Instruction I.D. or a post-effective amendment thereto that shall become effective upon filing with the Commission pursuant to Rule 462(e) under the Securities Act, check the following box.    ¨
If this Form is a post-effective amendment to a registration statement filed pursuant to General Instruction I.D. filed to register additional securities or additional classes of securities pursuant to Rule 413(b) under the Securities Act, check the following box.    ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.    ¨

 

Large accelerated filer:   ¨    Accelerated filer:   ¨
Non-accelerated filer:   ¨  (Do not check if smaller reporting company)    Smaller reporting company:   x

 

 


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CALCULATION OF REGISTRATION FEE

 

 

Title of each class of
securities to be registered(1)
  Amount
to be
registered
  Proposed
maximum
offering price
per share
  Proposed
maximum
aggregate
offering price
  Amount of
registration fee)

Common Stock, par value $0.001 per share

  44,786,050 (1) (2)   $0.72 (3)   $32,245,956 (3)(4)   $22 (4)(5)

 

 

 

(1) As described in greater detail in the prospectus contained in this registration statement, the shares of common stock to be offered for resale by selling stockholders include (a) 292,407 shares of common stock that are newly registered hereunder and (b) an aggregate of 44,493,643 shares of common stock that were previously registered and currently remain unsold as follows: (i) an aggregate of 20,346,853 shares previously subject of the Registration Statement on Form S-1 (File No. 333-209350) declared effective on February 17, 2016 (the “February 2016 Registration Statement”), (ii) an aggregate of 6,514,921 shares previously subject of the Registration Statement on Form S-1 (File No. 333-206896) declared effective on October 6, 2015 (the “October 2015 Registration Statement”), and (iii) an aggregate of 17,631,869 shares previously subject of the Registration Statement on Form S-1 (File No. 333-204802) declared effective on September 2, 2015 (the “September 2015 Registration Statement” and, collectively with the February 2016 Registration Statement and the October 2015 Registration Statement, the “Prior Registration Statements”).
(2) Pursuant to Rule 416 under the Securities Act, this registration statement (like the Prior Registration Statements) covers an indeterminate number of shares that may be issued upon stock splits, stock dividends or similar transactions.
(3) Estimated in accordance with Rule 457(c) under the Securities Act of 1933, as amended, solely for the purpose of calculating the registration fee, based on the average of the high and low prices of shares of the registrant’s common stock reported on the OTCQB of OTC Markets Group, Inc. on September 23, 2016, a date within five business days prior to the initial filing of this registration statement on September 29, 2016.
(4) No registration fee is payable in connection with the aggregate of 44,493,643 shares of common stock that were previously registered under the Prior Registration Statements, because such shares are being carried forward from the Prior Registration Statements pursuant to Rule 429 under the Securities Act. A registration fee is only payable in connection with the aggregate of 292,407 shares of common stock that were not previously registered under the Prior Registration Statements, with a proposed maximum aggregate offering price of $210,534. See “Statement Pursuant to Rule 429” below.
(5) Previously paid.

STATEMENT PURSUANT TO RULE 429

The registrant is filing a single prospectus in this registration statement, pursuant to Rule 429 under the Securities Act. The prospectus is a combined prospectus relating to (i) an aggregate of 44,493,643 shares of common stock that are currently registered and remain unsold under the Prior Registration Statements and (ii) 292,407 shares of common stock, resales of which are being newly registered hereunder, in each case as described in Note 1 to the fee table presented above. Pursuant to Rule 429, this registration statement constitutes a post-effective amendment to each of the Prior Registration Statements with respect to the offerings of such unsold shares thereunder, which are not currently being terminated by the Company. Such post-effective amendments will become effective concurrently with the effectiveness of this registration statement in accordance with Section 8(a) of the Securities Act.

The registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until this registration statement shall become effective on such date as the Commission acting pursuant to said Section 8(a), may determine.

 

 

 


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The information in this prospectus is not complete and may be changed. A registration statement relating to these securities has been filed with the Securities and Exchange Commission. These securities may not be sold until the registration statement is effective. This prospectus is not an offer to sell these securities and does not solicit an offer to buy these securities in any state or other jurisdiction where the offer or sale is not permitted.

Subject to completion, preliminary prospectus dated October 19, 2016

 

LOGO

44,786,050 Shares of Common Stock

 

 

This prospectus relates to the offer and sale by the selling stockholders identified in this prospectus of up to 44,786,050 shares of our common stock, par value $0.001 per share, issuable upon exercise of warrants. The shares of common stock being offered include:

 

1) 16,392,727 shares previously issued or issuable upon exercise, at an exercise price of $0.75 per share, of warrants issued to investors in certain private placements of common stock and warrants occurring between October 2015 and January 2016 (the “January 2016 Placement”);

 

2) 3,514,126 shares issuable upon exercise, at an exercise price of $0.75 per share, of warrants issued to our placement agent and its employees in the January 2016 Placement (including 4,827 shares previously issued upon exercise thereof as of the date of this prospectus);

 

3) 440,000 shares issuable upon exercise, at an exercise price of $1.02 or $0.92 per share, as the case may be, of warrants issued to a third-party consultant as consideration for certain services provided;

 

4) 449,999 shares issuable upon exercise, at an exercise price of $0.75 per share, of warrants issued to investors in certain private placements of common stock and warrants occurring in August 2015 (the “August 2015 Placement”);

 

5) 4,792,791 shares issuable upon exercise, at an exercise price of $0.75 per share, of warrants issued to investors in certain private placements of common stock and warrants occurring between June 2015 and July 2015 (the “July 2015 Placement”);

 

6) 1,272,131 shares issuable upon exercise, at an exercise price of $0.75 per share, of warrants issued to our placement agent and its employees in the July 2015 Placement;

 

7) 1,061,586 shares issuable upon exercise, at an exercise price of $0.75 per share, of warrants (the “May 2015 Investor Warrants”) issued to investors in certain private placements of convertible notes and warrants occurring between April 2015 and May 2015 (the “May 2015 Convertible Notes Placement”);

 

8) 530,802 shares issuable upon exercise, at an exercise price of $0.75 per share, of warrants issued to our placement agent and its employees in the May 2015 Convertible Notes Placement;

 

9) 10,941,078 shares previously issued or issuable upon exercise, at an exercise price of $0.75 per share, of warrants issued to investors in certain private placements of units comprising common stock and warrants occurring between September 2013 and October 2013 (the “October 2013 Units Placement”) (including 56,811 shares previously issued upon exercise thereof as of the date of this prospectus);


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10) 4,483,122 shares issuable upon exercise, at an exercise price of $0.75 per share, of warrants issued to our placement agent and its employees in the October 2013 Units Placement;

 

11) 615,381 shares previously issued upon exercise, at an exercise price of $0.50 per share, of warrants issued to investors in a privately placed bridged financing transaction occurring in July 2013 (the “July 2013 Bridge Notes Financing”); and

 

12) 292,307 shares issuable upon exercise, at an exercise price of $0.75 per share, of warrants issued to investors in connection with an offer by the Company to induce conversion of certain previously outstanding promissory notes.

The selling stockholders may sell all or a portion of these shares from time to time, in amounts, at prices and on terms determined at the time of sale. The shares may be sold by any means described in the section of this prospectus entitled “Plan of Distribution” beginning on page 21 of this prospectus.

We will not receive any proceeds from the sale of these shares. We will, however, receive cash proceeds equal to the total exercise price of warrants that are exercised for cash.

Our common stock is quoted on the OTCQB of OTC Markets Group, Inc. under the symbol “CYDY.” On October 19, 2016, the closing price of our common stock was $0.66 per share.

 

 

Investing in our securities involves risk. You should carefully consider the risks that we have described under the section captioned “Risk Factors” in this prospectus on page 6 before buying our Securities.

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

 

 

The date of this prospectus is                     , 2016


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TABLE OF CONTENTS

 

     Page  

FORWARD-LOOKING STATEMENTS

     1   

PROSPECTUS SUMMARY

     2   

RISK FACTORS

     6   

USE OF PROCEEDS

     7   

SELLING STOCKHOLDERS

     8   

PLAN OF DISTRIBUTION

     21   

DETERMINATION OF OFFERING PRICE

     24   

DESCRIPTION OF COMMON STOCK

     25   

LEGAL MATTERS

     28   

EXPERTS

     29   

ADDITIONAL INFORMATION

     30   

INCORPORATION OF CERTAIN INFORMATION BY REFERENCE

     31   

CytoDyn Inc. and its consolidated subsidiaries are referred to herein as “CytoDyn,” “the Company,” “we,” “us” and “our,” unless the context indicates otherwise.

You may only rely on the information contained in this prospectus or that we have referred you to. We have not authorized anyone to provide you with different information. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any securities other than the securities offered by this prospectus. This prospectus and any future prospectus supplement do not constitute an offer to sell or a solicitation of an offer to buy any securities in any circumstances in which such offer or solicitation is unlawful. Neither the delivery of this prospectus or any prospectus supplement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in our affairs since the date of this prospectus or such prospectus supplement or that the information contained by reference to this prospectus or any prospectus supplement is correct as of any time after its date.


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FORWARD-LOOKING STATEMENTS

This prospectus contains certain forward-looking statements that involve risks, uncertainties and assumptions that are difficult to predict. Words and expressions reflecting optimism, satisfaction or disappointment with current prospects, as well as words such as “believes,” “hopes,” “intends,” “estimates,” “expects,” “projects,” “plans,” “anticipates” and variations thereof, or the use of future tense, identify forward-looking statements, but their absence does not mean that a statement is not forward-looking. Our forward-looking statements are not guarantees of performance and actual results could differ materially from those contained in or expressed by such statements. In evaluating all such statements we urge you to specifically consider various risk factors identified in this prospectus, including the matters set forth under the heading “Risk Factors,” any of which could cause actual results to differ materially from those indicated by our forward-looking statements.

Our forward-looking statements reflect our current views with respect to future events and are based on currently available financial, economic, scientific, and competitive data and information on current business plans. You should not place undue reliance on our forward-looking statements, which are subject to risks and uncertainties relating to, among other things: (i) the sufficiency of our cash position, (ii) design, implementation and conduct of clinical trials, (iii) the results of our clinical trials, including the possibility of unfavorable clinical trial results, (iv) the market for, and marketability of, any product that is approved, (v) the existence or development of vaccines, drugs, or other treatments for infection with the Human Immunodeficiency Virus that are viewed by medical professionals or patients as superior to our products, (vi) regulatory initiatives, compliance with governmental regulations and the regulatory approval process, (vii) general economic and business conditions, (viii) changes in foreign, political, and social conditions, (ix) the specific risk factors discussed under the heading “Risk Factors” below, and (x) various other matters, many of which are beyond our control. Should one or more of these risks or uncertainties develop, or should underlying assumptions prove to be incorrect, actual results may vary materially and adversely from those anticipated, believed, estimated, or otherwise indicated by our forward-looking statements.

We intend that all forward-looking statements made in this prospectus will be subject to the safe harbor protection of the federal securities laws pursuant to Section 27A of the Securities Act, to the extent applicable. Except as required by law, we do not undertake any responsibility to update these forward-looking statements to take into account events or circumstances that occur after the date of this prospectus. Additionally, we do not undertake any responsibility to update you on the occurrence of any unanticipated events which may cause actual results to differ from those expressed or implied by these forward-looking statements.

 

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PROSPECTUS SUMMARY

The following summary highlights some information from this prospectus. It is not complete and does not contain all of the information that you should consider before making an investment decision. You should read this entire prospectus, including the “Risk Factors” section on page 3, the financial statements and related notes and the other more detailed information appearing elsewhere or incorporated by reference into this prospectus.

About Us

We are a clinical-stage biotechnology company focused on the clinical development and potential commercialization of humanized monoclonal antibodies to treat Human Immunodeficiency Virus (“HIV”) infection. Our lead product candidate, PRO 140, belongs to a class of HIV therapies known as entry inhibitors that block HIV from entering into and infecting certain cells. We believe that monoclonal antibodies are a new emerging class of therapeutics for the treatment of HIV to address unmet medical needs in the area of HIV and graft versus host disease.

We believe the PRO 140 antibody shows promise as a powerful anti-viral agent while not being a chemically synthesized drug and has fewer side effects, lower toxicity and less frequent dosing requirements, as compared to daily drug therapies currently in use for the treatment of HIV. The PRO 140 antibody belongs to a class of HIV therapies known as entry inhibitors that block HIV from entering into and infecting certain cells. PRO 140 blocks HIV from entering a cell by binding to a molecule called the C-C chemokine receptor type 5 (“CCR5”), a normal cell surface co-receptor protein to which certain strains of HIV, referred to as “R5” strains, attach as part of HIV’s entry into a cell.

PRO 140 is an antibody, and through several short-term clinical trials, it has demonstrated efficacy without issues relating to toxicity, side effects or drug resistance. Moreover, these trials suggest that PRO 140 does not affect the normal function of the CCR5 co-receptor for HIV. Instead, PRO 140 binds to a precise site on CCR5 that R5 strains of HIV use to enter the cell and, in doing so, inhibits the ability of these strains of HIV to infect the cell without affecting the cell’s normal function. The R5 strains of HIV currently represent approximately 67% of all HIV infections in the U.S. As a result, we believe PRO 140 represents a distinct class of CCR5 inhibitors with advantageous virological and immunological properties and may provide a unique tool to treat HIV infected patients.

We believe PRO 140 is uniquely positioned to address a growing HIV market as an alternative or in addition to current therapies, which are failing primarily due to drug resistance or lack of patient compliance often due to side effects of oral HIV medications. In seven clinical trials previously conducted, PRO 140 was generally well tolerated, and no drug-related serious adverse events or dose-proportional adverse events related to PRO 140 were reported. In addition, there were no dose-limiting toxicities or patterns of drug-related toxicities observed during these trials. The results of these studies established that PRO 140’s antiviral activity was potent, rapid, prolonged, dose-dependent, and statistically significant following a single dose. Because PRO 140’s mechanism of action (for a monoclonal antibody use in HIV) is a relatively new therapeutic approach, it provides a very useful method of suppressing the virus in treatment-experienced patients who have failed a prior HIV regimen and need new treatment options.

Corporate Information

CytoDyn Inc. is a Delaware corporation with its principal business office at 1111 Main Street, Suite 660, Vancouver, Washington 98660. Our website can be found at www.cytodyn.com. We do not intend to incorporate any contents from our website into this prospectus. Effective August 27, 2015, we completed a reincorporation from Colorado to Delaware.

Private Placements

The shares of our common stock being offered for resale by selling stockholders named herein pursuant to this prospectus were issued or are issuable in connection with private placement transactions described below.

 

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January 2016 Placement

Between October 6, 2015 and January 29, 2016, we issued in private placements to accredited investors (the “January 2016 Placement”) an aggregate of 33,338,884 shares of our common stock, together with warrants (the “January 2016 Investor Warrants”) to purchase an aggregate of 16,669,391 shares of our common stock at an exercise price of $0.75 per share. We paid Paulson Investment Company, LLC, as the placement agent for certain of the transactions in the January 2016 Placement, in addition to certain cash fees, warrants (the “January 2016 Placement Agent Warrants”) to purchase an aggregate of 3,525,801 shares of our common stock at an exercise price of $0.75 per share. The January 2016 Investor Warrants and the January 2016 Placement Agent Warrants all have a five-year expiration term and are immediately exercisable from the date of issuance. Shares of common stock issued or issuable upon exercise of January 2016 Investor Warrants and January 2016 Placement Agent Warrants are being offered for resale by the selling stockholders identified in this prospectus.

August 2015 Placement

Between August 7, 2015 and August 12, 2015, we issued in private placements to accredited investors (which we refer to as the “August 2015 Placement”) an aggregate of 899,999 shares of our common stock, together with warrants to purchase an aggregate of 449,999 shares of our common stock (the “August 2015 Investor Warrants”) at an exercise price of $0.75 per share. The August 2015 Investor Warrants all have a five-year expiration term and are immediately exercisable from the date of issuance. Shares of common stock issuable upon exercise of August 2015 Investor Warrants are being offered for resale by the selling stockholders identified in this prospectus.

July 2015 Placement

Between June 30, 2015 and July 31, 2015, we completed a private placement to accredited investors (which we refer to as the “July 2015 Placement”) of an aggregate of 9,785,621 shares of our common stock, together with warrants (the “July 2015 Investor Warrants”) to purchase an aggregate of 4,892,791 shares of our common stock at an exercise price of $0.75 per share. We paid Paulson Investment Company, LLC, as the placement agent in the July 2015 Placement, in addition to certain cash fees, warrants (the “July 2015 Placement Agent Warrants”) to purchase an aggregate of 1,272,131 shares of our common stock at an exercise price of $0.75 per share. The July 2015 Investor Warrants and the July 2015 Placement Agent Warrants all have a five-year expiration term and are immediately exercisable from the date of issuance. Shares of common stock issuable upon exercise of July 2015 Investor Warrants and July 2015 Placement Agent Warrants are being offered for resale by the selling stockholders identified in this prospectus.

May 2015 Convertible Notes Placement

Between April 30, 2015 and May 15, 2015, we completed a private placement to accredited investors (the “May 2015 Convertible Notes Placement”) of convertible promissory notes in the aggregate principal of $3,981,050 (the “May 2015 Notes”), together with warrants (the “May 2015 Investor Warrants”) to purchase an aggregate of 1,061,586 shares of our common stock at an exercise price of $0.75 per share. The May 2015 Notes have all subsequently been repaid or converted into or exchanged for other securities in separate transactions. We paid Paulson Investment Company, LLC, as the placement agent in the May 2015 Convertible Notes Placement, in addition to certain cash fees, warrants (the “May 2015 Placement Agent Warrants”) to purchase an aggregate of 530,802 shares of our common stock at an exercise price of $0.75 per share. The May 2015 Investor Warrants and May 2015 Placement Agent Warrants all have a five-year expiration term and are immediately exercisable from the date of issuance. Shares of common stock issuable upon exercise of May 2015 Investor Warrants and May 2015 Placement Agent Warrants are being offered for resale by the selling stockholders identified in this prospectus.

October 2013 Units Placement

Between September 25, 2013 and October 23, 2013, we completed a private placement to accredited investors (the “October 2013 Units Placement”) of 11,154,221 units, with each unit comprising two shares of common stock and a warrant to purchase one share of common stock at an exercise price of $0.75 per share, expiring five years from the date of issuance. A total of 22,308,466 shares of common stock were issued, together with warrants (the “October 2013 Investor Warrants”) to purchase a total of 11,154,221 additional shares of our common stock. We paid

 

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Paulson Investment Company, LLC, as the placement agent in the October 2013 Units Placement, in addition to certain cash fees, warrants (the “October 2013 Placement Agent Warrants”) to purchase an aggregate of 4,860,092 shares of our common stock at an exercise price of $0.75 per share, expiring seven years from the date of issuance. The October 2013 Investor Warrants and the October 2013 Placement Agent Warrants are immediately exercisable from the date of issuance. Shares of common stock issued or issuable upon exercise of October 2013 Investor Warrants and October 2013 Placement Agent Warrants are being offered for resale by the selling stockholders identified in this prospectus.

The January 2016 Investor Warrants, the August 2015 Investor Warrants, the July 2015 Investor Warrants, the May 2015 Investor Warrants and the October 2013 Investor Warrants are referred to collectively in this prospectus as the “Investor Warrants.” The January 2016 Placement Agent Warrants, the July 2015 Placement Agent Warrants, the May 2015 Placement Agent Warrants and the October 2013 Placement Agent Warrants are referred to collectively in this prospectus as the “Placement Agent Warrants.”

Bridge Note Warrant Shares

On July 31, 2013, we issued in a private placement to accredited investors (the “July 2013 Bridge Notes Financing”) a total of $1.2 million in unsecured convertible promissory notes (the “Bridge Notes”), bearing interest at a rate of 5% per year and convertible into shares of our common stock at a price of $0.65 per share. The July 2013 Bridge Notes have all subsequently been repaid or converted into or exchanged for other securities in separate transactions.

As part of the July 2013 Bridge Notes Financing, at the time of the original issuances of the Bridge Notes, we also issued to investors warrants (the “Bridge Note Warrants”) to purchase a total of 923,072 shares of common stock at an exercise price of $0.50 per share, expiring on July 31, 2016. All of the Bridge Note Warrants were exercised for common stock (the “Bridge Note Warrant Shares”) prior to July 31, 2016. Certain Bridge Note Warrant Shares are being offered for resale by the selling stockholders identified in this prospectus.

Inducement Warrants

On October 1, 2013, we issued to certain investors warrants (the “Inducement Warrants”) to induce conversion of certain previously outstanding promissory notes that were originally issued in private placements to accredited investors between October 1, 2012 and May 31, 2013. The Inducement Warrants have an exercise price of $0.75 per share and a five-year expiration term and are immediately exercisable from the date of issuance. Shares of common stock issuable upon exercise of Inducement Warrants are being offered for resale by the selling stockholders identified in this prospectus.

 

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Consultant Warrants

We have also issued to Paul J. Maddon, M.D., Ph.D., two warrants (the “Consultant Warrants”) to purchase an aggregate of 440,000 shares of our common stock, as consideration for services provided as a third-party consultant. The first Consultant Warrant covers 200,000 shares, was issued July 13, 2015, has an exercise price of $1.02 per share and a 10-year expiration term, and vests in two equal annual installments commencing on January 1, 2016. The second Consultant Warrant covers 240,000 shares, was issued January 4, 2016, has an exercise price of $0.92 per share and a 10-year expiration term, and vests in four equal quarterly installments commencing on January 4, 2016. Shares of common stock issuable upon exercise of Consultant Warrants are being offered for resale by the selling stockholders identified in this prospectus.

The Investor Warrants, the Placement Agent Warrants, the Inducement Warrants and the Consultant Warrants are referred to collectively in this prospectus as the “Warrants.”

This Offering

We are registering for resale by the selling stockholders named herein an aggregate of 44,786,050 shares of our common stock as described below.

 

Securities being offered:    Up to 44,786,050 shares of our common stock, including (i) 33,638,181 shares previously issued or issuable upon exercise of Investor Warrants (including 56,811 shares previously issued which are currently outstanding), (ii) 9,800,181 shares issuable upon exercise of Placement Agent Warrants (including 4,827 shares previously issued which are currently outstanding), (iii) 615,381 Bridge Note Warrant Shares, (iv) 292,307 shares issuable upon exercise of Inducement Warrants, and (v) 440,000 shares issuable upon exercise of Consultant Warrants.
Use of proceeds:    We will not receive any of the proceeds from the sale or other disposition of shares of our common stock by the selling stockholders. We may receive proceeds upon any exercise for cash of the Warrants, in which case such proceeds will be used for general working capital purposes. The Placement Agent Warrants and the Consultant Warrants include a cashless exercise feature, while the Investor Warrants and the Inducement Warrants do not.
Market for common stock:    Our common stock is quoted on the OTCQB of the OTC Markets under the symbol “CYDY.” On October 19, 2016, the closing price of our common stock was $0.66 per share.
Risk factors:    See “Risk Factors” beginning on page 6 for risks you should consider before investing in our shares.

 

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RISK FACTORS

Investing in our securities involves risks. You should carefully consider the risks, uncertainties and other factors described in our most recent Annual Report on Form 10-K, as supplemented and updated by subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K that we have filed or will file with the SEC, and in other documents which are incorporated by reference into this prospectus, as well as the risk factors and other information contained in or incorporated by reference into any accompanying prospectus supplement before investing in any of our securities. Our financial condition, results of operations or cash flows could be materially adversely affected by any of these risks. The risks and uncertainties described in the documents incorporated by reference herein are not the only risks and uncertainties that you may face.

For more information about our SEC filings, please see “Where You Can Find More Information” and “Incorporation of Certain Information by Reference.”

 

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USE OF PROCEEDS

We will receive no proceeds from the sale of shares of common stock by the selling stockholders.

A portion of the shares of common stock covered by this prospectus are issuable upon exercise of Warrants issued to the selling stockholders. The exercise price of the Investor Warrants and the Placement Agent Warrants is $0.75 per share; the exercise price of the Inducement Warrants is $0.75 per share; and the exercise prices of the Consultant Warrants is $1.02 or $0.92 per share, as the case may be. The exercise price and number of shares of common stock issuable upon exercise of the Warrants may be adjusted in certain circumstances, including stock splits or dividends, mergers, or reclassifications or similar events. Upon any exercise of Warrants for cash, the selling stockholders will pay us the exercise price. The Placement Agent Warrants and the Consultant Warrants include a cashless exercise feature, while the Investor Warrants and the Inducement Warrants do not.

To the extent we receive proceeds from the cash exercise of outstanding warrants, we intend to use the proceeds for working capital and other general corporate purposes.

 

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SELLING STOCKHOLDERS

The table below sets forth information concerning the resale of our shares by the selling stockholders. The selling stockholders acquired our securities in private placement transactions. The total number of common shares sold under this prospectus may be adjusted to reflect adjustments due to stock dividends, stock distributions, splits, combinations or recapitalizations with regard to the common stock and warrants. Unless otherwise stated below in the footnotes, to our knowledge, no selling stockholder, nor any affiliate of such stockholder: (i) has held any position or office with us during the three years prior to the date of this prospectus; or (ii) is a broker-dealer, or an affiliate of a broker-dealer.

The selling stockholders may exercise their warrants at any time in their sole discretion. Set forth below is the name of each selling stockholder and the amount and percentage of common stock owned by each (including shares which a stockholder has the right to acquire within 60 days, including upon exercise of options or warrants) prior to the offering, the shares to be sold in the offering, and the amount and percentage of common stock to be owned by each (including shares which a stockholder has the right to acquire within 60 days, including upon exercise of options or warrants) after the offering assuming all shares are sold. The footnotes provide information about persons who have voting and dispositive power with respect to shares held by the selling stockholders.

We have registered up to 44,786,050 shares of our common stock, including (i) 33,638,181 shares previously issued or issuable upon exercise of Investor Warrants (including 56,811 shares previously issued which are currently outstanding), (ii) 9,800,181 shares issuable upon exercise of Placement Agent Warrants (including 4,827 shares previously issued which are currently outstanding), (iii) 615,381 Bridge Note Warrant Shares, (iv) 292,307 shares issuable upon exercise of Inducement Warrants, and (v) 440,000 shares issuable upon exercise of Consultant Warrants. See “Prospectus Summary” above.

The following table is based on information provided to us by the selling stockholders and is as of September 30, 2016. The selling stockholders may sell all or some of the shares of common stock they are offering, and may sell unless indicated otherwise in the footnotes below shares of our common stock otherwise than pursuant to this prospectus. The tables below assume that each selling stockholder sells all of the shares offered by it in offerings pursuant to this prospectus, and does not acquire any additional shares. We are unable to determine the exact number of shares that will actually be sold or when or if these sales will occur.

 

8


Table of Contents
         

Name of Selling

Stockholder

  Shares
Beneficially
Owned
Pre-
Offering (1)
    % Owned
Pre-
Offering (2)
    Shares
Offered

Pursuant
to

This
Prospectus
    Number
of

Shares
Post-
Offering
    % of
Shares
Post-
Offering (2)
 

3530 Partnership

    6,666              6,666        —           

3NT Management LLC (3)

    2,549,999        1.8     866,666        1,683,333        1.2

AAR Account Family Limited Partnership (4)

    84,055              84,055        —           

Abby Dalton

    34,683              34,683        —           

Adolfo and Donna Carmona Jt Ten

    468,111              268,111        200,000         

Ajay Kalra

    66,333              33,333        33,000         

Alan and Susan Cohen

    34,055              34,055        —           

Alan Jacqueline Reed Family Trust B (5)

    17,028              17,028        —           

Albert H. Konetzni Jr.

    199,998              66,666        133,332         

Albert Starr

    150,000              50,000        100,000         

Alexander Vergopoulos (6)

    68,090              34,045        34,045         

Allan Rothstein

    66,666              66,666        —           

Allen Gabriel

    604,849              166,665        438,184         

Alon Cohen

    79,999              26,666        53,333         

Alpha Venture Capital Partners, LP (7)

    9,943,832        7.1     1,047,850        8,895,982        6.4

Alva Terry Staples (8)

    99,998              33,332        66,666         

Amer H. Haider

    168,109              101,443        66,666         

Anand Chakraborty

    99,999              33,333        66,666         

Anders Lindholm

    166,666              166,666        —           

Andrej Schon

    6,666              6,666        —           

Andrew Brill

    100,000              100,000        —           

Andrew Lechter

    438,332              163,332        275,000         

Andrzej Roth

    150,000              50,000        100,000         

Anthony Farello

    99,999              33,333        66,666         

Anthony M. Stolarski

    23,612              23,612        —           

Aronow Capital, LLC

    394,000              91,000        303,000         

Art Sadin

    684,051              317,386        366,665         

Arthur B. Baer

    99,999              33,333        66,666         

Ashok and Harshida Patel

    77,088              43,755        33,333         

Ashok Patel

    49,999              16,666        33,333         

Atlantic Realty Group, Inc.

    999,996              333,331        666,665         

Austin 1997 Trust

    49,999              16,666        33,333         

Austin Mansur

    42,028              42,028        —           

Babu Jain

    17,000              17,000        —           

Barbara Clark

    601,513              601,513        —           

Barbara Lile-Duzsik

    40,866              13,622        27,244         

Barry Saxe

    1,609,995              536,665        1,073,330         

Bell Family Trust dtd 2/2/1995

    399,999              133,333        266,666         

Benjamin Heller

    102,000              34,000        68,000         

Bill Hunt

    100,832              29,999        70,833         

Binit J Shah

    99,999              33,333        66,666         

Blaine Garst

    2,400,000        1.7     800,000        1,600,000        1.2

Blue Ocean Equity LLC Retirement Plan Trust

    33,333              33,333        —           

Bobby E. Benton

    199,999              66,666        133,333         

Bradford Paskewitz

    102,165              102,165        —           

Bradley C. and Belinda Karp Tenants in Common (9)

    1,044,692              253,331        791,361         

Bradley Resources Company, LLC

    51,000              17,000        34,000         

Brenna Tanzosh

    57,693              19,231        38,462         

Brett Korsgaard

    13,098              13,098        —           

Brian A. Halpern

    44,627              6,666        37,961         

Brian J. and Cheryl A Fenske JTWROS

    99,999              33,333        66,666         

Brian Sterling

    20,433              6,811        13,622         

Bruce D. Goethe and Laura K. Goethe Jt Ten

    240,000              80,000        160,000         

Bruce H. Seyburn

    204,330              68,110        136,220         

Bruce P. and Nancy M. Inglis JTWROS

    70,000              30,000        40,000         

Bruce Seyburn

    399,999              133,333        266,666         

Burt Stangarone

    175,000              100,000        75,000         

C Joseph VanHaverbeke Trust 1 dated 2/15/95

    49,999              16,666        33,333         

C. David and Lisa Callaham (10)

    1,282,179              177,393        1,104,786         

C. James & Karen A. Prieur JTWROS

    578,718              159,998        418,720         

Caisson Breakwater Fund Ltd.

    299,999              299,999        —           

Caisson Breakwater Fund, LP

    166,666              166,666        —           

Caisson Breakwater Global Opportunity Fund, LP

    513,332              513,332        —           

Calcott Family Trust

    61,306              23,332        37,974         

Callaham Revocable Trust (11)

    475,000              125,000        350,000         

Candy D’Azevedo Trust under Pauline Howard Trust 01/02/1998

    44,732              6,666        38,066         

Capacity Commercial Group, LLC

    199,999              66,666        133,333         

Cedric A and Margaret E Veum Living Trust (12)

    309,930              103,310        206,620         

Chad Krull

    33,333              33,333        —           

 

9


Table of Contents
         

Name of Selling

Stockholder

  Shares
Beneficially
Owned
Pre-
Offering (1)
    % Owned
Pre-
Offering (2)
    Shares
Offered

Pursuant
to

This
Prospectus
    Number
of

Shares
Post-
Offering
    % of
Shares
Post-
Offering (2)
 

Charles E. Mader

    94,731                 23,332        71,399            

Charles M. Johnson Jr.

    378,506                 93,332        285,174            

Charterhouse Capital Corporation

    1,999,998        1.4     666,666        1,333,332        1.0

Chitayat Holdings, LLC (13)

    999,999                 333,333        666,666            

Chris H. Miller

    40,866                 13,622        27,244            

Christian Kurmann

    600,000                 200,000        400,000            

Christopher P. Gutek

    39,998                 39,998        —              

Christopher R. Hermann

    78,588                 26,196        52,392            

Clayton A. Struve (14)

    790,000                 290,000        500,000            

Craig Bordon (15)

    2,818,499        2.0     965,166        1,853,333        1.3

Currie Family Trust

    30,000                 10,000        20,000            

Curt A. Christeson

    10,478                 10,478        —              

Czar Ventures, LLC

    46,666                 46,666        —              

Dale G. Ragan (16)

    965,583                 698,917        266,666            

Dale Jones

    24,999                 8,333        16,666            

Daniel Nowlin

    430,000                 20,000        410,000            

Daniel X. Wray

    183,922                 36,666        147,256            

Darob Zokaei

    13,622                 13,622        —              

Darrell K. Stone II

    115,384                 38,462        76,922            

Darren Scott

    124,998                 41,666        83,332            

David A. Dent

    264,330                 88,110        176,220            

David A. Ufheil

    333,333                 133,333        200,000            

David Burnidge

    5,239                 5,239        —              

David I. Schneider

    10,505                 10,505        —              

David P. and Carole A. Scheid

    70,218                 23,406        46,812            

Dear Invest AB (17)

    249,939                 83,313        166,626            

Debra Kanelstein

    147,027                 97,027        50,000            

Dennis Tasler

    152,392                 85,726        66,666            

DiBenedetto Holdings LLC

    99,999                 33,333        66,666            

Dominick Maiorano

    19,231                 19,231        —              

Donald Kornfeld

    69,998                 23,332        46,666            

Donald M. Cooper

    408,663                 136,221        272,442            

Double Add Investments LLC (18)

    23,076                 7,692        15,384            

Douglas E. Jasek

    30,000                 10,000        20,000            

Dr. Ralph N. Wharton

    224,228                 79,229        144,999            

Dr. Sanjay Gupta

    75,000                 75,000        —              

Drew Bledsoe

    17,028                 17,028        —              

Due Mondi Investments, LTD (19)

    57,691                 19,231        38,460            

Dyke Rogers

    624,999                 166,666        458,333            

Dyke Rogers 2011 Children’s Trust

    362,498                 99,999        262,499            

Dynamite Investment LLC (20)

    251,484                 251,484        —              

EBA Capital Inc.

    99,998                 33,332        66,666            

EKM Capital, LLC (21)

    629,262                 13,500        779,094            

Elden R. Gosney

    207,587                 59,529        148,058            

Emannuel and Cheryl Menayas

    6,666                 6,666        —              

Emanuel Selya

    13,098                 13,098        —              

Emerson Thomas Springer Jr.

    41,169                 6,666        34,503            

Emily W. Sunstein Residuary Marital Trust U/D dtd 1/1/96 as amended and restated on 12/15/01 & further amended (22)

    770,000                 390,000        380,000            

Eran Cohen

    170,528                 58,028        112,500            

Ernie Kreitenberg

    99,999                 33,333        66,666            

First Premier Bank, Custodian of Marilyn R. Huether IRA (23)

    19,231                 19,231        —              

Firstfire Global Opportunities Fund, LLC

    66,666                 66,666        —              

Florence K. Simons Family Trust (24)

    17,028                 17,028        —              

Fourfathom Capital, LLC

    199,999                 66,666        133,333            

Francis G Russo

    200,000                 200,000        —              

Francis Lymburner

    718,966                 568,966        150,000            

Frank Koza

    16,666                 16,666        —              

Frank Magdlen

    23,100                 7,700        15,400            

Frank Petrosino

    185,000                 20,000        165,000            

Fred & Betty Bialek Revocable Trust dtd 12/20/04 (25)

    323,750                 98,023        225,727            

G & D Conniff, LLC

    278,661                 59,999        218,662            

Gary Braga

    99,999                 33,333        66,666            

Gary W. Levine

    144,638                 39,998        104,640            

George and Karin A. Elefther JTWROS

    102,000                 34,000        68,000            

George M. Wilson

    126,084                 42,028        84,056            

Gerald A. Tomsic 1995 Trust

    99,999                 33,333        66,666            

Gerald McBride

    68,110                 68,110        —              

 

10


Table of Contents
                                                   

Name of Selling Stockholder

  Shares
Beneficially
Owned
Pre-
Offering (1)
    % Owned
Pre-
Offering (2)
    Shares
Offered

Pursuant
to

This
Prospectus
    Number
of

Shares
Post-
Offering
    % of
Shares
Post-
Offering (2)
                                           

Gil Bakal

    80,433                 26,811        53,622                          

Gil Solomon

    99,999                 33,333        66,666                          

Glen Stein

    165,382                 55,127        110,255                          

Goff VC Fund CD LLC (26)

    93,783                 93,783        —                            

Gordon and Marie Beers Sjodin

    204,330                 68,110        136,220                          

Gordon D. and Jeanne K. King

    77,000                 38,500        38,500                          

Gordon J. Weiss

    16,666                 16,666        —                            

Guy Ponticiello

    25,404                 25,404        —                            

Haden Capital LLC (27)

    349,999                 116,666        233,333                          

Harkishan Parekh

    49,999                 16,666        33,333                          

Harrison Caplan

    64,998                 24,999        39,999                          

Heather Wiswall

    57,691                 19,231        38,460                          

Hideo Takada

    200,000                 200,000        —                            

Howard C. Hutt

    712,162                 438,830        273,332                          

Howard Richmond

    26,942                 26,942        —                            

Hunse Investments, LP (28)

    122,731                 65,999        56,732                          

Ian J. Reynolds

    99,999                 33,333        66,666                          

IEB Associates LLC (29)

    69,230                 69,230        —                            

Intracoastal Capital, LLC (30)

    166,667                 166,667        —                            

Iroquois Master Fund Ltd.

    33,333                 33,333        —                            

Jack Chitayat (31)

    1,499,996        1.1     499,998        999,998                          

Jackson W. Stieb Jr.

    23,577                 23,577        —                            

Jacob M Gamble

    499,999                 166,666        333,333                          

Jacob Rosenberg

    113,331                 46,665        66,666                          

James F. Schwering

    183,922                 36,666        147,256                          

James N. Wierzba

    345,300                 127,920        217,380                          

Janyce Dean and Peter Speier TBE

    150,000                 50,000        100,000                          

Jason Chiriano

    150,000                 50,000        100,000                          

Jo Robin Davis

    60,000                 20,000        40,000                          

Joan R. Baer (32)

    202,164                 67,388        134,776                          

Joan Rich Baer Inc. Pension Plan & Trust (33)

    102,165                 34,055        68,110                          

Joe N. & Jamie W. Behrendt Revocable Trust (34)

    124,055                 84,055        40,000                          

Joel Frank Henning

    99,998                 33,332        66,666                          

Joel W. Haden (35)

    499,999                 166,666        333,333                          

John and Laura J. Maring

    121,999                 40,666        81,333                          

John B Payne

    162,499                 33,333        129,166                          

John C. Blazier and Fleur Christensen

    16,766                 16,766        —                            

John Comier

    199,999                 66,666        133,333                          

John Elliott

    99,998                 33,332        66,666                          

John Hall

    199,999                 66,666        133,333                          

John J. & Lisa Connolly Hogan Family Trust dtd 10/04/2001

    30,172                 16,666        13,506                          

John T. Gulliford

    49,999                 16,666        33,333                          

John T. Walker Trust

    154,677                 51,559        103,118                          

John V. Wagner

    239,279                 63,332        175,947                          

Johnathan Peacock

    375,000                 125,000        250,000                          

Jon and Melanie Stagnitti

    44,823                 6,680        38,143                          

Joseph Chulick III Revocable Living Trust dtd 7/27/2011 (36)

    88,461                 55,128        33,333                          

Joseph O. Manzi

    344,055                 204,055        140,000                          

Joyce A. Hayward

    23,333                 23,333        —                            

Julie Stone

    115,386                 38,462        76,924                          

Julius H Gross

    49,999                 16,666        33,333                          

Justin Brevoort

    84,999                 33,333        51,666                          

Kadi Family Trust

    399,999                 133,333        266,666                          

KAM Capital, LLC (37)

    629,262                 176,832        452,430                          

Katherine B. McCoy

    70,731                 23,577        47,154                          

Kathleen Lockwood

    17,028                 17,028        —                            

Keith and Jeanne Fishback

    221,856                 45,896        175,960                          

Keith J. Gelles

    577,494                 158,000        419,494                          

Kellett Family Partners, L.P.(38)

    300,000                 100,000        200,000                          

Kellett Investment Corp (39)

    499,999                 166,666        333,333                          

Ken Stinnett

    99,999                 33,333        66,666                          

Kenneth E. Chyten (40)

    259,496                 16,666        242,830                          

Kenter Canyon Capital, LLC

    99,998                 33,332        66,666                          

Kevin Gabrik

    60,000                 20,000        40,000                          

Koff Living Trust (41)

    15,384                 15,384        —                            

Kupcake Associates, LLC (42)

    199,999                 66,666        133,333                          

Lanny Sachnowitz

    13,622                 13,622        —                            

 

11


Table of Contents
         

Name of Selling Stockholder

  Shares
Beneficially
Owned
Pre-
Offering (1)
    % Owned
Pre-
Offering (2)
    Shares
Offered

Pursuant
to

This
Prospectus
    Number
of

Shares
Post-
Offering
    % of
Shares
Post-
Offering (2)
 

Law Offices of Kenneth E. Chyten Defined Benefit Pension Plan (43)

    209,497                 93,332        116,165            

Lawrence E. Coffman Living Trust Dtd 1/9/92 (44)

    77,646                 25,882        51,764            

Lee J. Seidler Revocable Trust dtd April 12, 2009

    113,332                 46,666        66,666            

Lester Petracca

    199,999                 66,666        133,333            

Lewis H. Dowdy

    49,999                 16,666        33,333            

Liane K. Carter (45)

    233,332                 99,999        133,333            

Longjean GMBH (46)

    408,630                 136,210        272,420            

Louis B. Cushman

    3,949,999        2.8     1,316,666        2,633,333        1.9

LRFA, LLC (47)

    799,999                 266,666        533,333            

Luray Circus LLC

    89,281                 13,333        75,948            

Lyle Reigel

    116,380                 116,380        —              

Marc A. Cohen

    233,232                 77,744        155,488            

Marjorie Hustead

    57,693                 19,231        38,462            

Mark Minkin

    314,201                 162,528        151,673            

Mark Suwyn

    399,999                 133,333        266,666            

Mark W. Spates

    225,000                 75,000        150,000            

Mark Zampella and David M Anders Jt Ten

    99,998                 33,332        66,666            

Martin Kupferberg (48)

    289,380                 79,999        209,381            

Marvin Greenberg

    44,640                 6,666        37,974            

MLPF&S Custodian FPO Mary T. Bartley IRA

    50,000                 50,000        —              

Matthew L. and Therese M. Salter

    102,165                 34,055        68,110            

Mehrdad Mark Mofid Trust

    83,334                 83,334        —              

Mehul Patel

    499,999                 166,666        333,333            

Melanie Stagnitti

    50,025                 16,675        33,350            

Michael Brotherton

    30,000                 10,000        20,000            

Michael Dugas

    138,499                 71,833        66,666            

Michael F. Bonazzola

    20,433                 6,811        13,622            

Michael Fishman

    60,000                 20,000        40,000            

Michael J. Anderson

    100,500                 33,500        67,000            

Michael Klein

    113,629                 28,000        85,629            

Michael G. Langsdorf

    30,000                 10,000        20,000            

Michael McDevitt

    450,000                 150,000        300,000            

Michael R. Armbrecht

    149,998                 49,999        99,999            

Michael Zimmerman

    34,055                 34,055        —              

Millenium IRA account FBO Christopher Hermann

    199,999                 66,666        133,333            

Millennium Trust Co., CUST FBO John Saefke IRA

    44,627                 6,666        37,961            

Millennium Trust Company LLC Custodian FBO Nancy S. Niederman IRA (49)

    115,383                 38,461        76,922            

MIS Equity Strategies, LP (50)

    408,348                 193,388        214,960            

Mitchell J. Tracy

    89,253                 13,333        75,920            

Mitchell Mandich

    412,988                 127,387        285,601            

Monte D. Anglin & Janet S JTWROS

    51,000                 17,000        34,000            

Morris Franklin

    19,230                 19,230        —              

MP Pacchine Rev Living Trust

    199,999                 66,666        133,333            

Myron F. Steves

    51,000                 17,000        34,000            

Nancy Cowgill

    152,121                 46,666        105,455            

Nasreen Haroon

    49,999                 16,666        33,333            

Natan & Miryam Vishlitzky JTWROS

    189,466                 46,666        142,800            

Navin Singh

    20,000                 20,000        —              

Nick Hutmacher

    99,999                 33,333        66,666            

Nickitas Panayotou (51)

    3,279,999        2.4     1,256,666        2,023,333        1.5

Nirav S. & Kavita G. Parikh

    6,666                 6,666        —              

Noah J. Anderson

    1,078,931                 326,664        752,267            

Noma Hanlon

    44,640                 6,666        37,974            

NuView IRA Custodian FBO Stefan F. Nowina

    199,999                 66,666        133,333            

NuView IRA, Custodian for Mia Kwong

    49,999                 16,666        33,333            

NuView IRA, Inc. Cust FBO Ross Pangere IRA (52)

    99,999                 33,333        66,666            

Ordian Limited (53)

    34,045                 34,045        —              

Osprey I, LLC

    369,998                 119,998        250,000            

Pamela Gingold

    51,084                 17,028        34,056            

Pat Welch (54)

    99,998                 33,332        66,666            

Paul Benedict Peat Ropner

    69,583                 13,333        56,250            

Paul Dragul

    66,000                 22,000        44,000            

Paul Hamerton-Kelly

    71,402                 10,666        60,736            

Paul J. Maddon, M.D., PhD. (55)

    440,000                 440,000        —              

Paul Rosenbaum

    150,000                 50,000        100,000            

Paul Russo

    49,999                 16,666        33,333            

Paulson Investment Company, LLC (56)

    2,053,429        1.5     1,939,089        114,340            

    Adam Bledsoe (57)

    1,508                 1,508        —              

 

12


Table of Contents
         

Name of Selling

Stockholder

  Shares
Beneficially
Owned
Pre-
Offering (1)
    % Owned
Pre-
Offering (2)
    Shares
Offered

Pursuant
to

This
Prospectus
    Number
of

Shares
Post-
Offering
    % of
Shares
Post-
Offering (2)
 

Ahmed Gheith (57)

    104,531                 100,499        4,032            

Albert Landstrom (57)

    60,225                 56,670        3,555            

Alex Winks (57)

    5,450                 5,000        450            

Basil Christakos (57)

    22,950                 22,500        450            

Bill Corbett (57)

    39,075                 33,825        5,250            

Bill Pedersen (57)

    19,725                 15,725        4,000            

Brad Seyffer (57)

    1,042                 1,042        —              

Brady Clark (57)

    1,508                 1,508        —              

Bryan Hagen (57)

    10,500                 10,500        —              

Byron Crowe (57)

    177,401                 174,023        3,018            

Carrie Snyder (57)

    12,175                 7,500        4,675            

Chris Clark (56)(57)(58)

    1,761,162        1.3     1,736,260        24,902            

Chris DeGroat (57)

    3,000                 1,000        2,000            

Christian Kiresborn (57)

    1,500                 1,500        —              

Clint Smith (57)

    2,855                 2,855        —              

Connie Schadewitz (57)

    17,799                 17,799        —              

Dan Houston (57)

    3,000                 3,000        —              

Dmitry Aksenov (57)

    4,827                 4,827        —              

Don Wanek (57)

    5,500                 5,500        —              

Don Wojnowski (57)

    61,522                 61,522        —              

Edmund Harelik (57)

    950                 950        —              

Gary Saccaro (57)

    193,068                 187,735        5,333            

Harry Harelik (57)

    950                 950        —              

Hazem Algendi (57)

    5,000                 4,875        125            

Joe Hede (57)

    687,423                 681,985        5,438            

Jon Nelson (57)

    7,721                 7,721        —              

Kelly Althar (57)

    2,125                 2,125        —              

Ken Tung (57)

    1,748                 1,748        —              

Kevin Graetz (57)

    687,503                 682,065        5,438            

Larry Cohen (57)

    74,937                 74,937        —              

Lorraine Maxfield (57)

    147,504                 147,000        504            

Morgan Janssen (57)

    1,000                 1,000        —              

Peter Fogarty (57)

    45,825                 45,825        —              

Robert Bostelman (57)

    17,436                 17,436        —              

Robert Setteducati (56)(57)

    1,760,037        1.3     1,735,135        24,902            

Starla Goff (57)

    63,098                 61,598        1,500            

Tanya Durkee- Urbach (57)

    62,277                 59,709        2,568            

Thomas Hoare (57)

    500                 500        —              

Tim Touloukian (57)

    24,100                 19,100        5,000            

Tom Parigian (56)(57)

    1,760,037        1.3     1,735,135        24,902            

William Corbett (57)

    49,000                 49,000        —              

Peggy Hoag

    119,230                 52,564        66,666            

Per Gustafsson

    102,165                 34,055        68,110            

Perry M. Waughtal

    49,999                 16,666        33,333            

Peter D. Bannister

    102,165                 34,055        68,110            

Peter Gould

    99,000                 50,000        48,000            

Peter H. Colettis

    99,999                 33,333        66,666            

Phil Jentgen

    49,999                 16,666        33,333            

Philip M. Cannella

    69,732                 31,666        38,066            

Philippe DuMont and Celia Tavares

    130,000                 130,000        —              

Pradeep Kaul

    165,610                 100,610        65,000            

Rajaee Family Trust dated 10/10/03 (59)

    193,972                 64,658        129,314            

Rajaee Family Trust Dtd 4/23/99 (60)

    1,915,377        1.4     541,236        1,374,141        1.0

Rajnikant N. Patel

    91,666                 16,666        75,000            

Ramjet Capital, LTD

    99,999                 33,333        66,666            

Randall M. Thompson (61)

    467,189                 180,388        286,801            

Randall Miller

    102,000                 34,000        68,000            

Raymond Crespo

    99,999                 33,333        66,666            

RBC Capital Markets LLC Cust FBO David S. Perry SEP IRA

    112,499                 33,333        79,166            

RBC Capital Markets LLC Cust FBO Michael Klein IRA

    239,279                 63,332        175,947            

RBC Capital Markets LLC Cust FBO Randall Thompson IRA

    300,000                 100,000        200,000            

RBC Capital Markets LLC Cust FBO Robert Taicher ROTH IRA

    49,999                 16,666        33,333            

RBC Capital Markets LLC Cust FBO Therese M. Salter SEP IRA

    150,000                 50,000        100,000            

RBC Capital Markets, LLC Cust FBO Eugene L. Tinker IRA (62)

    39,294                 13,098        26,196            

RBC Capital Markets, LLC Cust FBO William Paul Sterling IRA (63)

    6,811                 6,811        —              

Rebekah Shaffer

    6,666                 6,666        —              

Redwood Fund, LP

    66,666                 66,666        —              

Renaissance Interests, LP (64)

    477,130                 93,333        383,797            

Rex Randolph Smith

    5,239                 5,239        —              

 

13


Table of Contents
         

Name of Selling

Stockholder

  Shares
Beneficially
Owned
Pre-
Offering (1)
    % Owned
Pre-
Offering (2)
    Shares
Offered

Pursuant
to

This
Prospectus
    Number
of

Shares
Post-
Offering
    % of
Shares
Post-
Offering (2)
 

Richard Cotton

    99,999               33,333        66,666          

Richard Leto

    66,962               10,000        56,962          

Richard Martin van Nostrand

    151,881               13,333        138,548          

Richard Smithline

    33,333               33,333        —            

Rick Lott

    499,999               166,666        333,333          

Rick N. Collins

    49,999               16,666        33,333          

Robert A. Frist, M.D.

    1,999,999        1.4     666,666        1,333,000        1.0

Robert Adelson

    40,000               40,000        —            

Robert Alvine

    134,054               67,388        66,666          

Robert Caplan & Denise Petit-Caplan Jt Ten

    199,999               66,666        133,333          

Robert W. Corby

    589,997               196,665        393,332          

Robert Gulli

    30,000               10,000        20,000          

Robert Haider

    33,333               33,333        —            

Robert Kantor (65)

    231,764               231,764        —            

Robert Rathbone

    39,999               13,333        26,666          

Robert T. Martin

    115,386               38,462        76,924          

Robert Taicher

    50,721               50,721        —            

Roger A. Ramsey

    139,467               63,333        76,134          

Ross Pangere (66)

    299,998               99,999        199,999          

Russell K.Wallack

    110,000               100,000        10,000          

Ryan W. Shay

    120,000               40,000        80,000          

Sack Investment Holdings DAS LLC

    199,999               66,666        133,333          

Samir Patel

    300,000               100,000        200,000          

Samuel A. Fisher

    49,999               16,666        33,333          

Sandip I. Patel

    200,004               66,668        133,336          

Scott and Mary Beth Ross TBE

    49,999               16,666        33,333          

Shalom Family 2003 IRR Trust (67)

    68,110               68,110        —            

Shashikant V. Parikh

    6,666               6,666        —            

Sheldon L. Miller (68)

    1,473,201        1.1     913,202        559,999          

Sidney E. Taylor

    210,000               70,000        140,000          

Sonia Beecher

    49,999               16,666        33,333          

Stanton J. Rowe

    204,330               68,110        136,220          

Staples Family Partnership, LLP (69)

    19,999               6,666        13,333          

Stephen C. and Nan G. Swid

    600,000               200,000        400,000          

Stephen Lesser

    315,336               88,694        226,642          

Stephen Mut

    57,999               33,333        24,666          

Stephen R. Shumpert

    1,208,662               402,887        805,775          

Steven Collins

    150,000               50,000        100,000          

Steven F. Hanson (70)

    3,126,114        2.3     574,973        2,551,141        1.8

Steven Rothstein

    126,597               56,598        69,999          

Sunil Lekhi

    49,999               16,666        33,333          

Tahir A. Khan

    117,026               50,360        66,666          

Terry D. and Amy Lynne Milam

    10,479               10,479        —            

The Anthony and Angela Reed Family Trust (71)

    214,175               100,028        114,147          

The Bennett Yanowitz Credit Shelter Trust (72)

    68,110               68,110        —            

The Catherine Shauklas Trust u/a dtd 3/29/2004

    219,999               73,333        146,666          

The Chitayat Family Gift Trust dated 12/19/2003 (73)

    299,998               99,999        199,999          

The Robert T. Freres Living Trust

    49,999               16,666        33,333          

The Scott and Mary Schroeder Living Trust, dated February 10, 2015

    99,999               33,333        66,666          

The Vassily I Dubenko and Vera Dubenko Family Trust (74)

    57,691               19,231        38,460          

The Vilmur Family Trust (75)

    120,183               40,061        80,122          

The Wallace Family Trust

    49,999               16,666        33,333          

Theodore C. Yoon

    177,500               72,500        105,000          

Theodore H. Hustead (76)

    76,923               38,461        38,462          

Thomas A Gollott

    1,039,999               346,666        693,333          

Thomas A Pepin Revocable Trust

    499,999               166,666        333,333          

Thomas C. Koncsics and Thomas M Koncsics Jt Ten

    199,998               66,666        133,332          

Thomas E. Prasil Trust dated November 26, 2003

    150,000               50,000        100,000          

Thomas Eisenberg

    214,345               71,448        142,897          

Thomas Gensler

    100,500               33,500        67,000          

Thomas Gruber

    556,002               185,334        370,668          

Thomas Pidcock

    33,333               33,333        —            

Thomas T. Frederick

    599,998               199,999        399,999          

Timothy J. Walters

    13,098               13,098        —            

Tom Sego

    637,420               289,396        348,024          

Trent Agnew

    60,000               20,000        40,000          

Ullman Family Investments, LLC

    26,666               26,666        —            

Velcro, LLC (77)

    588,762               163,332        425,430          

Veronica Marano and Thomas M. Volckening

    808,923               245,000        563,923          

 

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Table of Contents
                                             

Name of Selling Stockholder

  Shares
Beneficially
Owned
Pre-
Offering (1)
    % Owned
Pre-
Offering (2)
    Shares
Offered

Pursuant
to

This
Prospectus
    Number
of

Shares
Post-
Offering
    % of
Shares
Post-
Offering (2)
                                     

Vincent Gulli

    55,000              25,000        30,000                     

Vista Capital Investments, LLC

    33,333              33,333        —                       

Vladimir Bogin

    313,331              113,332        199,999                     

Vladimir Zaharchook-Williams

    199,999              66,666        133,333                     

Wall Drug Store, Inc. 401K Profit Sharing Plan F/B/O Ted Hustead

    99,999              33,333        66,666                     

Wayne Sapper

    119,645              39,881        79,764                     

Wayne Westerman

    133,056              44,352        88,704                     

Willem De Geer (78)

    499,878              166,626        333,252                     

William Bolt

    125,134              18,666        106,468                     

William Bumgarner

    204,330              68,110        136,220                     

William Costigan

    103,845              34,615        69,230                     

William Esson

    120,000              40,000        80,000                     

William M. Stocker III

    150,006              50,002        100,004                     

William Rawson

    300,000              100,000        200,000                     

William Sykes

    87,500              52,500        35,000                     

William W. Espy

    2,499,999        1.8     833,334        1,666,665        1.2            

Wray Family Revocable Trust

    150,000              50,000        100,000                     

Yogesh C. Farswani

    51,084              17,028        34,056                     

 

* Represents less than 1%

 

(1) Beneficial ownership includes shares of common stock as to which a person or group has sole or shared voting power or dispositive power. Shares of common stock registered hereunder, as well as shares of common stock subject to options, warrants or convertible preferred stock that are exercisable or convertible within 60 days of September 30, 2016, are deemed outstanding for purposes of computing the number of shares beneficially owned and percentage ownership of the person or group holding such shares of common stock, options, warrants or convertible securities, but are not deemed outstanding for computing the percentage of any other person.

 

(2) Percentages are based on 138,221,981 shares of common stock outstanding as of September 30, 2016.

 

(3) Craig Bordon and Nickitas Panayotou, as managing members of 3NT Management LLC, share voting and dispositive power over (i) 1,633,333 shares of common stock directly held by 3NT Management LLC and (ii) warrants covering 916,666 shares of common stock directly held by 3NT Management LLC. See notes 15 and 51.

 

(4) Andrew Roth, as the general partner of AAR Accounts Family Limited Partnership, has voting and dispositive power over these warrant shares.

 

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(5) Alan A. Reed, as trustee of the Alan Jacqueline Reed Family Trust B, has voting and dispositive power over these warrant shares.

 

(6) Includes: (i) a warrant covering 34,045 shares of common stock directly held and (ii) a warrant covering 34,045 shares of common stock directly held by Ordian Limited, of which Mr. Vergopoulos is a beneficial owner. See note 53.

 

(7) Includes: (i) 7,243,740 shares of common stock directly held by Alpha Venture Capital Partners, LP (“AVCP”), (ii) warrants covering 2,372,850 shares of common stock directly held by AVCP, (iii) 230,769 shares of common stock directly help by Alpha Venture Capital Fund, LP (“AVCF”) and (iv) options covering 96,473 shares of common stock directly held by Carl C. Dockery. Mr. Dockery is a member of our Board of Directors. As the managing member of the general partner of AVCP and AVCF, and as sole member of the investment advisor for AVCP and AVCF, Mr. Dockery has voting and dispositive power over the shares specified in clauses (i) through (iii) above.

 

(8) Includes: (i) 53,333 shares of common stock directly held, (ii) a warrant covering 26,666 shares of common stock directly held, (iii) 13,333 shares of common stock directly held by Staples Family Partnership, LLP and (iv) a warrant covering 6,666 shares of common stock directly held by Staples Family Partnership, LLP. See note 69.

 

(9) Includes: (i) 407,563 shares of common stock directly held, (ii) warrants covering 159,998 shares of common stock directly held, (iii) 383,797 shares of common stock directly held by Renaissance Interests LP, and (iv) warrants covering 93,333 shares of common stock directly held by Renaissance Interests LP. See note 64.

 

(10) Includes: (i) 104,786 shares of common stock directly held by Mr. Callaham, (ii) 25,000 shares of common stock beneficially owned by Mr. Callaham’s wife, (iii) 60,000 shares of Series B Preferred Stock directly held that are convertible into 600,000 shares of common stock, (iv) warrants directly held covering 77,393 shares of common stock, (v) 350,000 shares of common stock directly held by the Callaham Revocable Trust and (vi) warrants covering 125,000 shares of common stock directly held by the Callaham Revocable Trust. See note 11.

 

(11) Mr. Callaham, as the trustee of this trust, has voting and dispositive power over these shares. See note 10.

 

(12) Cedric A. Veum and Margaret E. Veum, as co-trustees of the Cedric A. and Margaret E. Veum Living Trust, share voting and dispositive power over these shares.

 

(13) Jack Chitayat has voting and dispositive power over these shares. See note 31.

 

(14) Clayton A. Struve may be deemed to be an affiliate of a broker-dealer. Mr. Struve acquired the shares being registered hereunder in the ordinary course of business, and at the time of the acquisition of the shares and warrants described herein, Mr. Struve did not have any arrangements or understandings with any person to distribute such securities.

 

(15) Includes: (i) 120,000 shares of common stock directly held, (ii) warrants covering 148,500 shares of common stock, (iii) 1,633,333 shares of common stock directly held by 3NT Management LLC and (iv) warrants covering 916,666 shares of common stock directly held by 3NT Management LLC. See note 3.

 

(16) Includes: (i) 343,589 shares of common stock directly held by Dale G. Ragan, (ii) warrants covering 370,510 shares of common stock directly held by Dale G. Ragan and (iii) warrants covering 251,484 shares of common stock directly held by Dynamite Investment LLC. See note 20.

 

(17) Willem De Geer, as Chairman of Dear Invest AB, has voting and dispositive power over these shares. See note 78.

 

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(18) Adam Passaglia, as the manager of Double Add Investments LLC, has voting and dispositive power over these shares.

 

(19) Robert Beadle has voting and dispositive power over these shares.

 

(20) Dale G. Ragan, as the managing member of Dynamite Investment LLC, has voting and dispositive power over these shares. See note 16.

 

(21) Includes: (i) 27,000 shares of common stock directly held by EKM Capital, LLC, (ii) a warrant covering 13,500 shares of common stock directly held by EKM Capital, LLC, (iii) 425,430 shares of common stock directly held by Velcro, LLC, and (iv) warrants covering 163,332 shares of common stock directly held by Velcro, LLC. EKM Capital, LLC and KAM Capital, LLC share voting and dispositive power over shares directly held by Velcro, LLC. See notes 37 and 77.

 

(22) Leon C. Sunstein, Jr., as trustee of the Emily W. Sunstein Residuary Marital Trust U/D dtd 1/1/96 as amended and restated on 12/15/01 & further amended, has voting and dispositive power over these shares.

 

(23) Mike Huether has voting and dispositive power over these shares.

 

(24) Florence K. Simons has voting and dispositive power over these shares.

 

(25) Fred B. Bialek, as the trustee of the Fred & Betty Bialek Revocable Trust dated 12/20/2004, has voting and dispositive power over these shares.

 

(26) Caroline Bombardier, as the managing member of Goff VC Fund CD, LLC, has voting and dispositive power over these shares.

 

(27) Joel W. Haden has voting and dispositive power over these shares. See note 35.

 

(28) Tom and Denise Hunse share voting and dispositive power over these shares.

 

(29) William Shalom has voting and dispositive power over these shares. See note 67.

 

(30) Intracoastal Capital LLC may be deemed to be an affiliate of a broker-dealer. Intracoastal Capital LLC acquired the shares being registered hereunder in the ordinary course of business, and at the time of the acquisition of the shares and warrants described herein, Intracoastal Capital LLC did not have any arrangements or understandings with any person to distribute such securities.

 

(31) Includes: (i) 133,333 shares of common stock directly held by Jack Chitayat, (ii) a warrant covering 66,666 shares of common directly held by Jack Chitayat, (iii) 666,666 shares of common stock directly held by Chitayat Holdings, LLC, (iv) a warrant covering 333,333 shares of common stock directly held by Chitayat Holdings, LLC, (v) 199,999 shares of common stock directly held by The Chitayat Family Gift Trust dated 12/19/2003 and (vi) a warrant covering 99,999 shares of common stock directly held by the Chitayat Family Gift Trust. See notes 13 and 73.

 

(32) Includes: (i) 66,666 shares of common stock directly held, (ii) a warrant covering 33,333 shares of common stock directly held, (iii) 68,110 shares of common stock held by the Joan Rich Baer, Inc. Pension Plan & Trust, and (iv) a warrant covering 34,055 shares of common stock held by the Joan Rich Baer, Inc. Pension Plan & Trust. See note 33.

 

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Table of Contents
(33) Arthur B. Baer and Joan Rich Baer, as co-trustees of the Joan Rich Baer, Inc. Pension Plan & Trust share voting and dispositive power over these shares. See note 32.

 

(34) Joe N. Behrendt, as the trustee of the Joe N. & Jamie W. Behrendt Revocable Trust, has voting and dispositive power over these shares.

 

(35) Includes: (i) 100,000 shares of common stock directly held by Joel W. Haden, (ii) a warrant covering 50,000 shares of common stock directly held, (iii) 233,333 shares of common stock directly held by Haden Capital LLC, over which Mr. Haden has voting and dispositive power and (iv) a warrant covering 116,666 shares of common stock directly held by Haden Capital LLC. See note 27.

 

(36) Joseph Chulick III, as the trustee of the Joseph Chulick Revocable Living Trust u/a 7/27/2010, has voting and dispositive power over these shares.

 

(37) Includes: (i) 27,000 shares of common stock directly held by KAM Capital, LLC, (ii) a warrant covering 13,500 shares of common stock directly held by KAM Capital, LLC, (iii) 425,430 shares of common stock directly held by Velcro, LLC and (iv) warrants covering 163,332 shares of common stock directly held by Velcro, LLC. KAM Capital, LLC and EKM Capital, LLC share voting and dispositive power over shares directly held by Velcro, LLC. See notes 21 and 77.

 

(38) Kellett Investment Corp. has voting and dispositive power over these shares. See note 39.

 

(39) Includes: (i) 133,333 shares of common stock directly held by Kellett Investment Corp., (ii) a warrant covering 66,666 shares of common stock directly held by Kellett Investment Corp., (iii) 200,000 shares of common stock directly held by Kellett Family Partners, L.P., and (iv) a warrant covering 100,000 shares of common stock directly held by Kellett Family Partners, L.P. See note 38.

 

(40) Includes: (i) 33,333 shares of common stock directly held by Kenneth Chyten, (ii) a warrant covering 16,666 shares of common stock directly held by Kenneth Chyten, (iii) 116,165 shares of common stock directly held by Law Offices of Kenneth E. Chyten Defined Benefit Pension Plan, of which Mr. Chyten has dispositive and voting power and (iv) a warrant covering 93,332 shares of common stock directly held by Law Offices of Kenneth E. Chyten Defined Benefit Pension Plan. See note 43.

 

(41) Howard M. Koff, as the trustee of the Koff Living Trust, has voting and dispositive power over these shares. Howard M. Koff is an affiliate of M. Holdings Securities, Inc., a broker-dealer.

 

(42) Martin Kupferberg and Liane K. Carter, as managers of Kupcake Associates, LLC have voting and dispositive power over these shares. See notes 45 and 48.

 

(43) Kenneth E. Chyten, as trustee for Law Offices of Kenneth E. Chyten Defined Benefit Pension Plan, has voting and dispositive power over these shares. See note 40.

 

(44) Lawrence E. Coffman, as trustee of the Lawrence E. Coffman Living Trust Dtd 1/9/92, has voting and dispositive power over these shares.

 

(45) Includes: (i) a warrant covering 33,333 shares of common stock directly held by Liane K. Carter, (ii) 133,333 shares of common stock directly held by Kupcake Associates, LLC and (iii) warrant shares covering 66,666 shares of common stock directly held by Kupcake Associates, LLC. See note 42.

 

(46) Francis C. Calame Longjean, as the manager of Longjean GMBH, has voting and dispositive power over these shares.

 

(47) David F. Welch, as President of LRFA, LLC, has voting and dispositive power over these shares.

 

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(48) Includes: (i) 76,048 shares of common stock directly held by Martin Kupferberg, (ii) a warrant covering 13,333 shares of common stock directly held by Martin Kupferberg, (iii) 133,333 shares of common stock directly held by Kupcake Associates, LLC and (iv) a warrant covering 66,666 shares common stock directly held by Kupcake Associates, LLC. See note 42.

 

(49) Nancy S. Niederman has voting and dispositive power over these shares.

 

(50) Anthony Michael Reed, as the manager of the general partner of MIS Equity Strategies, L.P., has voting and dispositive power over these shares. See note 71.

 

(51) Includes: (i) 180,000 shares of common stock directly held by Nickitas Panayotou, (ii) warrants covering 550,000 shares of common stock directly held by Nickitas Panayotou, (iii) 1,633,333 shares of common stock directly held by 3NT Management LLC and (iv) warrants covering 916,666 shares of common stock directly held by 3NT Management LLC. See note 3.

 

(52) Ross Pangere has voting and dispositive power over these shares. See note 66 below.

 

(53) Alexander Vergopoulos has voting and dispositive power over these shares. See note 6.

 

(54) Pat Welch may be deemed to be an affiliate of a broker-dealer. Ms. Welch acquired the shares being registered hereunder in the ordinary course of business, and at the time of the acquisition of the shares and warrants described herein, Ms. Welch did not have any arrangements or understandings with any person to distribute such securities.

 

(55) Assumes for purposes of this registration statement that the Consultant Warrants are fully vested.

 

(56) The Executive Committee of Paulson Investment Company, LLC, a broker-dealer registered with the SEC and member of FINRA, has voting and dispositive power over these warrant shares. The Executive Committee is comprised of Messrs. Clark, Parigian and Setteducati. Paulson Investment Company, LLC was the placement agent with respect to the warrant shares offered pursuant to this prospectus.

 

(57) Individual is an officer, employee, or consultant to Paulson Investment Company, LLC, and was assigned these warrant shares by Paulson as part of their compensation.

 

(58) The shares beneficially owned by Chris Clark include 601,513 warrant shares owned by his wife, Barbara Clark.

 

(59) Behrouz Rajaee has voting and dispositive power over these shares. Mr. Rajaee also holds 66,114 shares in his personal IRA account.

 

(60) Behrouz Rajaee has voting and dispositive power over these shares. Mr. Rajaee also holds 66,114 shares in his personal IRA account.

 

(61) Randall M. Thompson is an affiliate of Lincoln Financial Advisers Corporation, a broker-dealer.

 

(62) Eugene L. Tinker has voting and dispositive power over these shares.

 

(63) William Paul Sterling has voting and dispositive power over these shares.

 

(64) Bradley Karp, as President of Renaissance Interests LP, has voting and dispositive power over these shares. See note 9.

 

(65) Robert Kantor is an affiliate of Time Equities Securities LLC, a broker-dealer.

 

(66) Includes: (i) 133.333 shares of common stock directly held by Ross Pangere, (ii) a warrant covering 66,666 shares of common stock directly held, (iii) 66,666 shares of common stock held in an IRA and (iv) a warrant covering 33,333 shares of common stock held in an IRA. See note 52.

 

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Table of Contents
(67) William Shalom, as trustee of the Shalom Family 2003 IRR Trust, has voting and dispositive power over these shares. See note 29.

 

(68) The shares beneficially owned by Sheldon L. Miller include 25,000 shares held in trusts for his grandchildren.

 

(69) Alva Terry Staples, as general partner of Staples Family Partnership, LLP, has voting and dispositive power over these shares. See note 8.

 

(70) Includes: (1) 1,774,270 shares of common stock directly held by Mr. Hanson, (ii) 145,500 shares of common stock held by Northwest Lending Partners, LLC to which Mr. Hanson is the sole member, (iii) 305,246 shares of common stock held in an IRA for Mr. Hanson, (iv) 275,000 shares of common stock held in an IRA for Mr. Hanson’s wife and (v) warrants covering 626,098 shares of common stock directly held by Mr. Hanson.

 

(71) Anthony Michael Reed, as the trustee of the Anthony & Angela Reed Family Trust, has voting and dispositive power over these shares. Anthony Michael Reed is an affiliate of Cova Capital, a broker-dealer. The Anthony and Angela Reed Family Trust may be deemed to be an affiliate of a broker-dealer. The Anthony and Angela Reed Family Trust acquired the shares being registered hereunder in the ordinary course of business, and at the time of the acquisition of the shares and warrants described herein, the Anthony and Angela Reed Family Trust did not have any arrangements or understandings with any person to distribute such securities. Anthony Michael Reed is also the manager of the general partner of MIS Equity Strategies, L.P., and has voting and dispositive power over the shares. See note 50.

 

(72) Alan Yanowitz, as trustee of The Bennett Yanowitz Credit Shelter Trust, has voting and dispositive power over these shares.

 

(73) Jack Chitayat, as trustee of the Chitayat Family Gift Trust dated 12/19/03, has voting and dispositive power over these shares. See note 31.

 

(74) Vassily I. Dubenko and Sonia Beecher, as co-trustees of The Vassily I. Dubenko and Vera Dubenko Family Trust, share voting and dispositive power over these shares.

 

(75) Roger M. Vilmur, as trustee of The Vilmur Family Trust, has voting and dispositive power over these shares.

 

(76) The shares beneficially owned by Theodore H. Hustead include 38,462 shares owned by Mr. Hustead’s wife.

 

(77) EKM Capital, LLC and KAM Capital, LLC share voting and dispositive power over shares held by Velcro, LLC. See notes 21 and 37.

 

(78) Includes: (i) 166,626 shares of common stock directly held by William De Geer, (ii) a warrant covering 83,313 shares of common stock directly held by William De Geer, (iii) 166,626 shares of common stock directly held by Dear and (iv) a warrant directly held by Dear covering 83,313 shares of common stock. See note 17.

 

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PLAN OF DISTRIBUTION

The selling stockholders, which for this purpose includes donees, pledgees, transferees or other successors-in-interest selling shares of common stock or interests in shares of common stock received after the date of this prospectus from a selling stockholder as a gift, pledge, dividend, distribution or other transfer, may, from time to time, sell, transfer or otherwise dispose of any or all of their shares of common stock or interests in shares of common stock on any stock exchange, market or trading facility on which the shares are traded, or in private transactions. These sales or other dispositions may be at fixed prices, at prevailing market prices at the time of sale, at prices related to the prevailing market price, at varying prices determined at the time of sale, or at negotiated prices.

The selling stockholders may use any one or more of the following methods when selling our shares or interests in our shares:

 

    ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;

 

    block trades in which a broker-dealer will attempt to sell the shares as agent, but may position and resell a portion of the block as principal to facilitate the transaction;

 

    purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

 

    on any national securities exchange or quotation service on which the shares may be listed or quoted at the time of sale;

 

    privately negotiated transactions;

 

    short sales effected after the date the registration statement of which this prospectus is a part is declared effective by the SEC;

 

    through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise;

 

    broker-dealers may agree with the selling stockholders to sell a specified number of such shares at a stipulated price per share;

 

    a combination of any such methods of sale; and

 

    any other method permitted by applicable law.

The selling stockholders may, from time to time, pledge or grant a security interest in some or all of our shares owned by them and, if they default in the performance of their secured obligations, the pledgees or secured parties may offer and sell the shares of common stock, from time to time, under this prospectus, or under an amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act amending the list of selling stockholders to include the pledgee, transferee or other successors in interest as selling stockholders under this prospectus. The selling stockholders may also transfer our shares in other circumstances, in which case the transferees, pledgees or other successors will be the selling beneficial owners for purposes of this prospectus.

In connection with the sale of our common shares or interests therein, the selling stockholders may enter into hedging transactions with broker-dealers or other financial institutions, which may in turn engage in short sales of our shares in the course of hedging the positions they assume. The selling stockholders may also sell shares of our common stock short and deliver these securities to close out their short positions, or loan or pledge the common stock to broker-dealers that in turn may sell these securities. The selling stockholders may also enter into option or other transactions with broker-dealers or other financial institutions or the creation of one or more derivative securities which require the delivery to such broker-dealer or other financial institution of shares offered by this prospectus, which shares such broker-dealer or other financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect such transaction).

 

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The aggregate proceeds to the selling stockholders from the sale of the common stock offered by them will be the purchase price of the common stock less discounts or commissions, if any. Each of the selling stockholders reserves the right to accept and, together with their agents from time to time, to reject, in whole or in part, any proposed purchase of common stock to be made directly or through agents. We will not receive any of the proceeds from sales of shares by the selling stockholders.

The selling stockholders may also resell all or a portion of the shares in open market transactions in reliance upon Rule 144 under the Securities Act, provided that they meet the criteria and conform to the requirements of that rule, or under Section 4(a)(1) of the Securities Act, if available, rather than by means of this prospectus.

In connection with the sale of shares of common stock covered by this prospectus, broker-dealers may receive commissions or other compensation from a selling stockholder in the form of commissions, discounts or concessions. Broker-dealers may also receive compensation from purchasers of the shares of common stock for whom they act as agents or to whom they sell as principals or both. Compensation as to a particular broker-dealer may be in excess of customary commissions or in amounts to be negotiated. In connection with any underwritten offering, underwriters may receive compensation in the form of discounts, concessions or commissions from a selling stockholder or from purchasers of the shares for whom they act as agents. Underwriters may sell the shares of common stock to or through dealers, and such dealers may receive compensation in the form of discounts, concessions or commissions from the underwriters and/or commissions from the purchasers for whom they may act as agents. Any underwriters, broker-dealers, agents or other persons acting on behalf of a selling stockholder that participate in the distribution of the shares of common stock may be deemed to be “underwriters” within the meaning of the Securities Act, and any profit on the sale of the shares of common stock by them and any discounts, commissions or concessions received by any of those underwriters, broker-dealers, agents or other persons may be deemed to be underwriting discounts and commissions under the Securities Act. The aggregate amount of compensation in the form of underwriting discounts, concessions, commissions or fees and any profit on the resale of shares by the selling stockholders that may be deemed to be underwriting compensation pursuant to Financial Industry Regulatory Authority, Inc., rules and regulations will not exceed applicable limits.

The selling stockholders and any underwriters, broker-dealers or agents that participate in the sale of the common stock or interests therein may be “underwriters” within the meaning of Section 2(11) of the Securities Act. Any discounts, commissions, concessions or profit they earn on any resale of the shares may be underwriting discounts and commissions under the Securities Act. Selling stockholders who are “underwriters” within the meaning of Section 2(11) of the Securities Act will be subject to the prospectus delivery requirements of the Securities Act and may be subject to certain statutory liabilities, including but not limited to, Sections 11, 12 and 17 of the Securities Act and Rule 10b-5 under the Exchange Act.

To the extent required, the shares of our common stock to be sold, the names of the selling stockholders, the respective purchase prices and public offering prices, the names of any agent, dealer or underwriter, and any applicable commissions or discounts with respect to a particular offer will be set forth in an accompanying prospectus supplement or, if appropriate, a post-effective amendment to the registration statement that includes this prospectus.

In order to comply with the securities laws of some states, if applicable, the common stock may be sold in these jurisdictions only through registered or licensed brokers or dealers. In addition, in some states the common stock may not be sold unless it has been registered or qualified for sale or an exemption from registration or qualification requirements is available and is complied with.

We have advised the selling stockholders that the anti-manipulation rules of Regulation M under the Exchange Act may apply to sales of shares in the market and to the activities of the selling stockholders and their affiliates. In addition, to the extent applicable, we will make copies of this prospectus (as it may be supplemented or amended from time to time) available to the selling stockholders for the purpose of satisfying the prospectus delivery requirements of the Securities Act. The selling stockholders may indemnify any broker-dealer that participates in transactions involving the sale of the shares against certain liabilities, including liabilities arising under the Securities Act. All of the foregoing may affect the marketability of the common stock and the ability of any person or entity to engage in market-making activities with respect to our common stock.

 

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We will pay all expenses of the registration of the common stock for resale by the selling stockholders, including, without limitation, filing fees and expenses of compliance with state securities or “blue sky” laws; provided, however, that each selling stockholder will pay all underwriting discounts and selling commissions, if any, and any related legal expenses incurred by it.

 

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DETERMINATION OF OFFERING PRICE

The prices at which the shares of common stock covered by this prospectus may actually be sold will be determined by the prevailing public market price for shares of common stock, by negotiations between the selling stockholders and buyers of our common stock in private transactions or as otherwise described in “Plan of Distribution.”

 

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DESCRIPTION OF COMMON STOCK

General

We are authorized to issue up to 355,000,000 shares of capital stock, including 350,000,000 shares of common stock, par value $0.001 per share, and 5,000,000 shares of preferred stock, par value $0.001 per share. As of September 30, 2016, we had 138,221,981 shares of common stock and 95,100 shares of Series B Preferred Stock (as defined below) issued and outstanding.

Our stockholders approved a proposal to implement a reverse stock split at a ratio of any whole number between one-for-two and one-for-eight, as determined by our Board of Directors, at any time before August 24, 2017, if and as determined by our Board of Directors.

The additional shares of our authorized stock available for issuance may be issued at times and under circumstances so as to have a dilutive effect on earnings per share and on the equity ownership of the holders of our common stock. The ability of our board of directors to issue additional shares of stock could enhance the board’s ability to negotiate on behalf of the stockholders in a takeover situation but could also be used by the board to make a change-in-control more difficult, thereby denying stockholders the potential to sell their shares at a premium and entrenching current management. The following description is a summary of the material provisions of our capital stock. You should refer to our certificate of incorporation, as amended and bylaws, both of which are on file with the SEC as exhibits to previous SEC filings, for additional information. The summary below is qualified by provisions of applicable law.

Common Stock

Each outstanding share of common stock entitles the holder to one vote, either in person or by proxy, on all matters submitted to a vote of stockholders, including the election of directors. There is no cumulative voting in the election of directors. All actions required or permitted to be taken by stockholders at an annual or special meeting of the stockholders must be effected at a duly called meeting, with a quorum present of a majority in voting power of the shares entitled to vote thereon. Special meetings of the stockholders may only be called by our Board of Directors acting pursuant to a resolution approved by the affirmative majority of the entire Board of Directors. Stockholders may not take action by written consent. As more fully described in our Certificate of Incorporation, holders of our common stock are not entitled to vote on certain Amendments to the Certificate of Incorporation related solely to our preferred stock.

Subject to preferences which may be applicable to any outstanding shares of preferred stock from time to time, holders of our common stock have equal ratable rights to such dividends as may be declared from time to time by our Board of Directors out of funds legally available therefor. In the event of any liquidation, dissolution or winding-up of our affairs, holders of common stock will be entitled to share ratably in our remaining assets after provision for payment of amounts owed to creditors and preferences applicable to any outstanding shares of preferred stock. All outstanding shares of common stock are fully paid and nonassessable. Holders of common stock do not have preemptive rights.

The rights, preferences and privileges of holders of common stock are subject to the rights of the holders of any outstanding shares of preferred stock.

Preferred Stock

Our Board of Directors is authorized to issue up to 5,000,000 shares of preferred stock, par value $0.001 per share, in one or more series, 4,600,000 of which shares are unassigned.

Our Board of Directors has the authority, within the limitations and restrictions prescribed by law and without stockholder approval, to provide by resolution for the issuance of shares of preferred stock, and to fix the rights, preferences, privileges and restrictions thereof, including dividend rights, conversion rights, voting rights, terms of redemption, liquidation preference and the number of shares constituting any series of the designation of such series, by delivering an appropriate certificate of amendment to our certificate of incorporation to the Delaware Secretary of State pursuant to the Delaware General Corporation Law (the “DGCL”). The issuance of preferred stock could have the effect of decreasing the market price of the common stock, impeding or delaying a possible takeover and adversely affecting the voting and other rights of the holders of our common stock.

 

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If we offer a specific series of preferred stock under this prospectus, we will describe the terms of the preferred stock in the prospectus supplement for such offering and will file a copy of the certificate establishing the terms of the preferred stock with the SEC. To the extent required, this description will include:

 

    the title and stated value;

 

    the number of shares offered, the liquidation preference per share and the purchase price;

 

    the dividend rate(s), period(s) and/or payment date(s), or method(s) of calculation for such dividends;

 

    whether dividends will be cumulative or non-cumulative and, if cumulative, the date from which dividends will accumulate;

 

    the procedures for any auction and remarketing, if any;

 

    the provisions for a sinking fund, if any;

 

    the provisions for redemption, if applicable;

 

    any listing of the preferred stock on any securities exchange or market;

 

    whether the preferred stock will be convertible into our common stock, and, if applicable, the conversion price (or how it will be calculated) and conversion period;

 

    whether the preferred stock will be exchangeable into debt securities, and, if applicable, the exchange price (or how it will be calculated) and exchange period;

 

    voting rights, if any, of the preferred stock;

 

    a discussion of any material and/or special U.S. federal income tax considerations applicable to the preferred stock;

 

    the relative ranking and preferences of the preferred stock as to dividend rights and rights upon liquidation, dissolution or winding up of the affairs of CytoDyn; and

 

    any material limitations on issuance of any class or series of preferred stock ranking senior to or on a parity with the series of preferred stock as to dividend rights and rights upon liquidation, dissolution or winding up of CytoDyn.

Our Board of Directors previously established a series of preferred stock designated as Series B Convertible Preferred Stock (“Series B Preferred Stock”), comprising 400,000 shares of Preferred Stock, of which 95,100 shares remain outstanding as of September 30, 2016. Subject to superior rights of any other outstanding preferred stock from time to time, each outstanding share of Series B Preferred Stock is entitled to receive, in preference to the common stock, annual cumulative dividends equal to $0.25 per share per annum from the date of issuance, which shall accrue, whether or not declared. At the time shares of Series B Preferred Stock are converted into common stock, accrued and unpaid dividends will be paid in cash or with shares of common stock. In the event we elect to pay dividends with shares of common stock, the shares issued will be valued at $0.50 per share. Series B Preferred Stock does not have any voting rights. In the event of liquidation, each share of Series B Preferred Stock is entitled to receive, in preference to the common stock, a liquidation payment equal to $5.00 per share plus any accrued and unpaid dividends. If there are insufficient funds to permit full payment, the assets legally available for distribution will be distributed pro rata among the holders of the Series B Preferred Stock.

 

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Each share of Series B Preferred Stock may be converted into ten fully paid shares of common stock at the option of a holder as long as we have sufficient authorized and unissued shares of common stock available. The conversion rate may be adjusted in the event of a reverse stock split, merger or reorganization.

Anti-takeover Effects of Delaware Law and our Certificate of Incorporation, as amended

As described above, our Board of Directors is authorized to designate and issue shares of preferred stock in series and define all rights, preferences and privileges applicable to such series. This authority may be used to make it more difficult or less economically beneficial to acquire or seek to acquire us.

Special meetings of the stockholders may only be called by our Board of Directors acting pursuant to a resolution approved by the affirmative majority of the entire Board of Directors. Stockholders may not take action by written consent.

The stockholders may, at a special stockholders meeting called for the purpose of removing directors, remove the entire Board of Directors or any lesser number, but only with cause, by a majority vote of the shares entitled to vote at an election of directors.

Additional Warrants

As of September 30, 2016, we had issued and outstanding warrants to purchase up to 62,984,839 shares of common stock, exercisable at prices ranging from $0.50 per share to $1.35 per share.

Stock Options

As of September 30, 2016, we had issued and outstanding options to purchase up to 7,320,158 shares of common stock, exercisable at prices ranging from $0.34 per share to $2.90 per share.

Transfer Agent and Registrar

The transfer agent and registrar for our common stock and preferred stock is Computershare. The transfer agent address is 211 Quality Circle, Suite 210, College Station, TX 77845, and its telephone number is 1-800-962-4284.

 

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LEGAL MATTERS

Unless otherwise indicated in the applicable prospectus supplement, the validity of the securities offered hereby will be passed upon for us by Lowenstein Sandler LLP, New York, New York. If the validity of the securities offered hereby in connection with offerings made pursuant to this prospectus are passed upon by counsel for the underwriters, dealers or agents, if any, such counsel will be named in the prospectus supplement relating to such offering.

 

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EXPERTS

The consolidated balance sheet of CytoDyn Inc. as of May 31, 2016, and the related consolidated statements of operations, changes in stockholders’ equity, and cash flows for the year then ended have been audited by Warren Averett, LLC, an independent registered public accounting firm, as stated in their report which is incorporated herein. Such financial statements have been incorporated herein in reliance on the report of such firm given upon their authority as experts in accounting and auditing.

 

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ADDITIONAL INFORMATION

This prospectus is part of a Registration Statement on Form S-3 that we have filed with the SEC relating to the shares of our securities being offered hereby. This prospectus does not contain all of the information in the registration statement and its exhibits. The registration statement, its exhibits and the documents incorporated by reference in this prospectus and their exhibits, all contain information that is material to the offering of the Securities hereby. Whenever a reference is made in this prospectus to any of our contracts or other documents, the reference may not be complete. You should refer to the exhibits that are a part of the registration statement in order to review a copy of the contract or documents. The registration statement and the exhibits are available at the SEC’s Public Reference Room or through its Website.

We file annual, quarterly and current reports, proxy statements and other information with the SEC. You can read and copy any materials we file with the SEC at its Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549 and at its regional offices, a list of which is available on the Internet at http://www.sec.gov/contact/addresses.htm. You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC maintains an Internet site at http://www.sec.gov that contains reports, proxy and information statements, and other information regarding issuers, such as us, that file electronically with the SEC. Additionally, you may access our filings with the SEC through our website at http://www.cytodyn.com. The information on our website is not part of this prospectus.

We will provide you without charge, upon your oral or written request, with a copy of any or all reports, proxy statements and other documents we file with the SEC, as well as any or all of the documents incorporated by reference in this prospectus or the registration statement (other than exhibits to such documents unless such exhibits are specifically incorporated by reference into such documents). Requests for such copies should be directed to:

1111 Main Street, Suite 660

Vancouver, Washington 98660

(360) 980-8524

You should rely only on the information in this prospectus and the additional information described above and under the heading “Incorporation of Certain Information by Reference” below. We have not authorized any other person to provide you with different information. If anyone provides you with different or inconsistent information, you should not rely upon it. We are not making an offer to sell these securities in any jurisdiction where the offer or sale is not permitted. You should assume that the information in this prospectus was accurate on the date of the front cover of this prospectus only. Our business, financial condition, results of operations and prospects may have changed since that date.

 

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INCORPORATION OF CERTAIN INFORMATION BY REFERENCE

The SEC allows us to “incorporate by reference” information that we file with it into this prospectus, which means that we can disclose important information to you by referring you to those documents. The information incorporated by reference is an important part of this prospectus. The information incorporated by reference is considered to be a part of this prospectus, and information that we file later with the SEC will automatically update and supersede information contained in this prospectus and any accompanying prospectus supplement.

We incorporate by reference the documents listed below that we have previously filed with the SEC:

 

    our Annual Report on Form 10-K for the fiscal year ended May 31, 2016, filed with the SEC on July 19, 2016;

 

    our Quarterly Report on Form 10-Q for the quarterly period ended August 31, 2016, filed with the SEC on October 12, 2016;

 

    our Proxy Statement on Schedule 14A filed with the SEC on July 20, 2016;

 

    our Current Reports on Form 8-K filed with the SEC on August 19, 2016, August 24, 2016 and September 12, 2016; and

 

    the description of our common stock contained in our Registration Statement on Form 10-SB, filed on July 11, 2002, including any amendments thereto or reports filed for the purposes of updating this description (including the Form 8-K filed with the SEC on September 1, 2015, including Exhibit 99.1 thereto).

All reports and other documents that we file with the SEC under Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act after the date of this prospectus but before the termination of the offering of the securities hereunder will also be considered to be incorporated by reference into this prospectus from the date of the filing of these reports and documents, and will supersede the information herein; provided, however, that all reports, exhibits and other information that we “furnish” to the SEC will not be considered incorporated by reference into this prospectus. We undertake to provide without charge to each person (including any beneficial owner) who receives a copy of this prospectus, upon written or oral request, a copy of all of the preceding documents that are incorporated by reference (other than exhibits, unless the exhibits are specifically incorporated by reference into these documents). You may request a copy of these materials in the manner set forth under the heading “Additional Information,” above.

 

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44,786,050 Shares of Common Stock

 

 

 

LOGO

 

 

PROSPECTUS

 

 

                    , 2016

 

 

 


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PART II

INFORMATION NOT REQUIRED IN PROSPECTUS

Item 14. Other Expenses of Issuance and Distribution

The following table sets forth the costs and expenses payable in connection with the sale and distribution of the securities being registered. All amounts are estimates except the SEC registration fee (which has previously been paid).

 

SEC Registration Fee

   $ 22   

Legal Fees and Expenses

     25,000

Accounting Fees and Expenses

     3,000

Printing

     5,000

Miscellaneous

     1,978
  

 

 

 

Total:

   $ 35,000
  

 

 

 

 

* Estimated.

Item 15. Indemnification of Directors and Officers

Section 145 of the DGCL authorizes a corporation to indemnify its directors, officers, employees and agents against expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement reasonably incurred, provided they act in good faith and in a manner reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal proceeding, had no reasonable cause to believe their conduct was unlawful, although in the case of proceedings brought by or on behalf of the corporation, such indemnification is limited to expenses and is not permitted if the individual is adjudged liable to the corporation (unless the Delaware Court of Chancery or the court in which such proceeding was brought determines otherwise in accordance with the DGCL).

Section 102 of the DGCL authorizes a corporation to limit or eliminate its directors’ liability to the corporation or its stockholders for monetary damages for breaches of fiduciary duties, other than for (1) breaches of the duty of loyalty, (2) acts or omissions not in good faith or that involve intentional misconduct or knowing violations of law, (3) unlawful payments of dividends, stock purchases or redemptions or (4) transactions from which a director derives an improper personal benefit.

The registrant’s certificate of incorporation and by-laws contains provisions protecting its directors and officers to the fullest extent permitted by Sections 102 and 145 of the DGCL.

Section 145 of the DGCL also authorizes a corporation to purchase and maintain insurance on behalf of any person who is or was a director, officer, employee or agent of the corporation against certain liabilities asserted against and incurred by such person in any such capacity, or arising out of such person’s status as such. The registrant maintains liability insurance covering its directors and officers for claims asserted against them or incurred by them in such capacity.

The registrant has entered into agreements to indemnify its directors and officers to the maximum extent allowed under Delaware law. These agreements, among other things, indemnify the registrant’s directors and officers for certain expenses (including attorneys’ fees), judgments, fines and settlement amounts reasonably incurred by such person in any action or proceeding, including any action by or in the registrant’s right, on account of any services undertaken by such person on behalf of the registrant or that person’s status as a member of the registrant’s board or directors.

 

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The registrant also maintains insurance policies that indemnify its directors and officers against various liabilities arising under the Securities Act of 1933, as amended, and the Exchange Act of 1934, as amended, that might be incurred by any director or officer in his capacity as such.

Item 16. Exhibits

The Index to Exhibits listing the exhibits required by Item 601 of Regulation S-K is located on the page immediately following the signature page to this registration statement.

Item 17. Undertakings

The undersigned registrant hereby undertakes:

 

(1) To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:

 

  (a) To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933,

 

  (b) To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20 percent change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement,

 

  (c) To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement.

Provided, however, that paragraphs (1)(a), (1)(b) and (1)(c) above do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in periodic reports filed with or furnished to the Commission by the registrant pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement, or is contained in a form of prospectus filed pursuant to Rule 424(b) that is part of the registration statement.

 

(2) That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

 

(3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.

 

(4) That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser:

 

  (a) If the registrant is relying on Rule 430B:

 

  (i) Each prospectus filed by the registrant pursuant to Rule 424(b)(3)shall be deemed to be part of the registration statement as of the date the filed prospectus was deemed part of and included in the registration statement; and

 

  (ii)

Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as part of a registration statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii), or (x) for the purpose of providing the information required by section 10(a) of the Securities Act of 1933 shall be deemed to be part of and included in the registration

 

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  statement as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement relating to the securities in the registration statement to which that prospectus relates, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such effective date.

 

  (b) If the registrant is subject to Rule 430C, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be a part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.

 

(5) That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities, the registrant undertakes that in a primary offering of securities of the registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:

 

  (a) Any preliminary prospectus or prospectus of the registrant relating to the offering required to be filed pursuant to Rule 424;

 

  (b) Any free writing prospectus relating to the offering prepared by or on behalf of the registrant or used or referred to by the registrant;

 

  (c) The portion of any other free writing prospectus relating to the offering containing material information about registrant or its securities provided by or on behalf of the registrant; and

 

  (d) Any other communication that is an offer in the offering made by an registrant to the purchaser.

 

(6) That, for purposes of determining any liability under the Securities Act of 1933, each filing of the registrant’s annual report pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan’s annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

 

(7) In connection with offerings of securities to existing security holders pursuant to warrant or rights where any securities not taken by security holders are to be reoffered to the public, to supplement the prospectus, after the expiration of the subscription period for a warrant or rights offering, to set forth the results of the subscription offer, the transactions by the underwriters during the subscription period, the amount of unsubscribed securities to be purchased by the underwriters, and the terms of any subsequent reoffering thereof. If any public offering by the underwriters is to be made on terms differing from those set forth on the cover page of the prospectus, a post-effective amendment will be filed to set forth the terms of such offering.

 

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(8) In connection with offerings of securities at competitive bids: (a) to use its best efforts to distribute prior to the opening of bids, to prospective bidders, underwriters, and dealers, a reasonable number of copies of a prospectus which at that time meets the requirements of Section 10(a) of the Act, and relating to the securities offered at competitive bidding, as contained in the registration statement, together with any supplements thereto, and (b) to file an amendment to the registration statement reflecting the results of bidding, the terms of the reoffering and related matters to the extent required by the applicable form, not later than the first use, authorized by the issuer after the opening of bids, of a prospectus relating to the securities offered at competitive bidding, unless no further public offering of such securities by the issuer and no reoffering of such securities by the purchasers is proposed to be made.

 

(9) Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the forgoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

 

(10) That:

 

  (a) For purposes of determining any liability under the Securities Act of 1933, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.

 

  (b) For the purpose of determining any liability under the Securities Act of 1933, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

 

(11) The undersigned hereby undertakes to file an application for the purpose of determining the eligibility of the trustee to act under subsection (a) of Section 310 of the Trust Indenture Act in accordance with the rules and regulations prescribed by the Commission under Section 305(b)(2) of the Act.

 

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SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-3 and has duly caused this amendment to the registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Vancouver, State of Washington, as of October 19, 2016.

 

CYTODYN INC.

By:

  /s/ Michael D. Mulholland
  Michael D. Mulholland
 

Chief Financial Officer, Treasurer and

Corporate Secretary

Pursuant to the requirements of the Securities Act of 1933, this amendment to the registration statement has been signed by the following persons in the capacities and on the dates indicated.

 

Signature

  

Title

 

Date

*

Nader Z. Pourhassan, Ph.D.

  

Chief Executive Officer and Director

(Principal Executive Officer)

  October 19, 2016

/s/ Michael D. Mulholland

Michael D. Mulholland

  

Chief Financial Officer

(Principal Financial and Accounting Officer)

  October 19, 2016

*

Anthony D. Caracciolo

  

Director

  October 19, 2016

*

Denis R. Burger, Ph.D.

  

Director

  October 19, 2016

*

Carl C. Dockery

  

Director

  October 19, 2016

*

Gregory A. Gould

  

Director

  October 19, 2016

*

A. Bruce Montgomery, M.D.

  

Director

  October 19, 2016

*

Jordan G. Naydenov

  

Director

  October 19, 2016

 

*By:   /s/ Michael D. Mulholland
  Attorney-in-Fact


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INDEX TO EXHIBITS

 

Exhibit
No.

  


Description

2.1    Agreement and Plan of Merger, dated as of July 6, 2015, between CytoDyn Inc. and CytoDyn Inc. (incorporated by reference to Exhibit 2.1 to our Current Report on Form 8-K12G3 filed with the SEC on September 1, 2015).
3.1    Certificate of Incorporation of CytoDyn Inc. (incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K12G3 filed with the SEC on September 1, 2015).
3.2    Certificate of Amendment to Certificate of Incorporation of CytoDyn Inc. (incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K filed with the SEC on March 21, 2016).
3.3    Certificate of Amendment to Certificate of Incorporation of CytoDyn Inc. (incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K filed with the SEC on August 24, 2016).
3.4    By-Laws of CytoDyn Inc. (incorporated by reference to Exhibit 3.2 to our Current Report on Form 8-K12G3 filed with the SEC on September 1, 2015).
4.1    Form of Common Stock Certificate (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K12G3 filed September 1, 2015).
4.2    Form of Investor Warrant (other than October 2013 Investor Warrant) (incorporated by reference to Exhibit 4.3 to the Registrant’s Registration Statement on Form S-1 filed September 11, 2015).
4.3    Form of Placement Agent Warrant (other than October 2013 Placement Agent Warrant) (incorporated by reference to Exhibit 4.4 to the Registrant’s Registration Statement on Form S-1 filed September 11, 2015).
4.4    Form of October 2013 Investor Warrant and Inducement Warrant (incorporated by reference to Exhibit 4.3 to the Registrant’s Amendment No. 2 to Form S-1 filed September 2, 2015).
4.5    Form of October 2013 Placement Agent Warrant (incorporated by reference to Exhibit 4.5 to the Registrant’s Form S-1 filed November 15, 2013).
4.6    Form of Consultant Warrant (incorporated by reference to Exhibit 4.4 to the Registrant’s Registration Statement on Form S-1 filed February 3, 2016).
5.1    Legal opinion of Lowenstein Sandler.**
23.1    Consent of Warren Averett LLP.**
23.2    Consent of Lowenstein Sandler LLP (included in Exhibit 5.1).**
24.1    Power of Attorney (included on the signature page).*

 

* Previously filed.
** Filed herewith.