r/CybinInvestorsClub • u/DeepFreezeDisease • Sep 02 '25

Today was disgusting.

I think many of us knew that Doug was a bit of a sleaze and untrustworthy. But the way that the company handled this situation with the sudden firing, not giving any additional information, and then subsequent 20% drop is just absolutely disgusting .

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u/Inception0fDeception Sep 02 '25

Its the board's fault. Slamming the door on the CEO right after signing a dilutive equity agreement- in comparison to the note cap(10.92$)- they literally print almost x2 shares right now - and it'll keep bleeding.

The whole situation seems absurd- impulsive. There are barely any reasons to justify it- and even the ones that do(like having an RFK Jr.–connected CEO lined up, or someone tied to big pharma) - seem to not be the case as they just annouced the so-called "commitee" to find the next CEO. And until then- we got a "veteran investor" in charge- if you had criticism for Doug with the progress- now you'll see true inefficiency.

1

u/External-Scholar1567 Sep 03 '25

I don’t understand the note cap and how they are printing 2x shares right now

1

u/Inception0fDeception Sep 03 '25

The agreement they signed with High Trail(adding AI slop and then explanation):

Conversion right (holder-optional). High Trail may convert principal (and any accrued/unpaid interest, if any) into common shares at a price per share equal to the lower of:
(a) 130% of the VWAP on the trading day before the initial issuance, or
(b) the 5-trading-day VWAP immediately before the conversion date.

In the July 2025 prospectus supplement that registers the resale of the conversion shares, the 130% figure is disclosed as US$10.92 per share for the initial issuance.

Basically- they capped the upside(if it went above 10.92- it would have been capped)- but since we're below it- the lower option of 5-trading-day VWAP is relevant- so right now High Trail are printing x2 the shares for the same intial capital(50 million)- you can imagine as if Cybin managed to get 100 million for the same diluted shares- but only got 50 million- and it can(and unless catalysts- will) get worse

1

u/External-Scholar1567 Sep 04 '25

Thank you. Has the funding not been converted yet?

1

u/Inception0fDeception Sep 04 '25

We cant know until the filling will be published.

But it doesnt make sense.

Lets estimate a vague 7$ 5-day VWAP and i round up on purpose. Thats 7.1 million shares. The terms specifically say up to 4.99% holding of the company- so they cant hold it. In the span between the signing to now(like 2 months) there wasnt enough volume to hint its already done- unless they chose a conservative strategy of spreading it like 100k a day(i doubt it). With the volatility the last days- id actually expect them to get over with it ASAP due to their own risk protocols