Avid Bioservices Inc (CDMO)

[NoMoDo]

why is it unsavory?

I get that having authorized share available could lead to issued shares down the road, but regardless of the number of shares authorized and unused, management will get access to as many shares as they feel they need. I haven't see management carelessly spend money - at least not outside the norm for a biotech company.

Keep in mind that unless the company gets to profitability, they will be using authorized shares. They need to pay for day to day operations through debt or equity. Biotech's that have not yet gotten to profitability use equity as their main source to continue in business.

If there were no authorized shelf shares, the company would be out of business. If the AS were low, the BOD would need to ask for more from shareholders. There would be debate, the stock price would temporarily go lower, and then the shareholders would authorize more because they don't want to bite off their nose to spite their face.