Avid Bioservices Inc (CDMO)

[westjtter]

OK, I am not sure if they can skip the quarterly CC as this was part of their mandate that they voted on. We may have to wait awhile for them to restate their earnings and finish their "investigation", but we should hear something from Nick in the not too distant future.

It is sad that they just can't seem to get out of their own way, but in the end, this does not change the narrative.....its all about filling up their capacity....if they start achieving this, we are golden....if they keep stumbling along......well not so much!!!

[Preciouslife1]

https://ir.avidbio.com/news-releases/news-release-details/avid-bioservices-completes-construction-new-world-class-cell-and

Hi y’all …. These events are very disturbing to us long, faithful, and loyal shareholders, some here 25+ years like myself …..
That said, the precipitous drop in PPS from almost $35 down to $4 range has chopped $ 6 digits from my CDMO value or holdings value … @67 years young now, this was SO UNEXPECTED AND UNFORSEEN, THAT MGT. WOULD BE THIS INEPT IN BOOKKEEPING AND DUE DILIGENCE ALL THE WHILE CREATING STATE OF THE ART CDMO FACILITY AS WELL AS the VIRAL VECTOR FACILITY IS INCREDULOUS TO ME & I AM SO SURE SO MANY LONGS HERE …. NO PRESS RELEASE TO HELP MITIGATE THE DAMAGE THAT “THEY” IMPOSED UPON US, THE SHAREHOLDERS!!

[Cubflyer1946]

All of the BS was totally foreseeable! TCLN/PPHM/CDMO. The name changes but the incompetence is forever!

[ElSid18]

NOTHING but selling !! Our prestige as the go-to manufacturer has
been damaged....a new plant that they cannot fill with orders !! forget
the "backlog nonsense"....an order on the books doesn't come with a
time table......the BOD has gone into the witness protection program
and this quarter's CC ain't happenin'...........................GLTA.......

TOTAL BS !!!!!

[Cubflyer1946]

I too am shocked! Shocked! LOL!

[r622102675]

Upon whose recommendation was K&L Gates brought on?…What is their exposure to legal recourse at this junction as well is a question that needs delving into… I was under the impression that we used them as supplemental legal and financial experts?… imao…r

[westjtter]

Yes, but even more than that....who negotiated the deal that had an acceleration clause that could result in the loan being called without any kind of notification instrument as part of this....every loan has a provision of a time period(30 days?), after notification from the lender, to bring your payments up to date or risk having the loan called.

So is this a bump in the road, or a severe setback? "A failure of internal controls"......so how does that look to a BP that is waiting for approval from the FDA and needs a CDMO to manufacture this drug?

Do you trust a company like Avid that had a serious failure of their internal controls to manufacture this drug? Does this failure only relate to the financial department or is this widespread in the company and could affect their manufacturing controls also???

Now I may think this is a failure of internal controls only of their accounting/financial/legal division, but a BP or Biotech looking for a contract manufacturer may now be concerned that the entire company may not be well run. Is this the first and only cockroach or are there other issues?

As a shareholder, I am shocked at the incompetence and angry that insufficient controls were not in place!

[cheynew]

I agree. As was said in the filings, there was a failure of internal controls. I would say a catastrophic failure. I expected much better of Nick. Yes, the auditors should have noted it, but it falls primarily on management.

[r622102675]

This really needs to be said...If there's a lawsuit tailored to just clawbacks on all the execs and BOD members who on board as of the Note date and cashed in on any type of stock option (except Hancock and Carleone to a some degree- they were the only persons who made a buy on the open market) I would more than happy to sign on...sorry that some of them might not have anything to do with Note but the fact that they cashed in for a nice profit and failed to "put something back in appreciation of the opportunity to make some easy money" while the retail shareholder partially funded their gig...I do not have the smallest amount of sympathy if their lives are going to become hell now...I just don't...(my biggest desire is to see at least the 3 Amigo's who put their name on the Note paperwork and every quarterly statement since pay a price at a minimum)...imao...r

[cheynew]

Also 8K
Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review.

As previously reported in a Current Report on Form 8-K filed by Avid Bioservices, Inc. (the “Company”) with the Securities and Exchange Commission on March 6, 2024, on February 29, 2024, the Company received an acceleration notice from a holder of its 1.250% Exchangeable Senior Notes due 2026 (the “2026 Notes”). The acceleration notice stipulated, among other things, that (i) the Company did not remove the restrictive legend on the 2026 Notes by March 17, 2022 as required under the indenture governing the 2026 Notes (the “2026 Notes Indenture”), (ii) due to such failure, additional interest has accrued thereafter at a rate of 0.50% per annum (the “Additional Interest”), (iii) such Additional Interest had not been paid by the Company as of the date of the Acceleration Notice, which constituted an event of default under the 2026 Notes Indenture (the “Event of Default”), and (iv) such holder is the beneficial owner of at least 25% in aggregate principal amount of the outstanding 2026 Notes and therefore has the right to accelerate all of the 2026 Notes. As a result of the Event of Default, such holder declared 100% of the principal of, and accrued and unpaid interest on, the 2026 Notes to be due and payable immediately.

The Company did not receive any notices and was not otherwise made aware of the Event of Default prior to receipt of the Acceleration Notice, and did not have an opportunity to cure the Event of Default at the time of receipt of the Acceleration Notice.

In connection with the Event of Default, the Company undertook an evaluation as to whether certain of the financial statements included in the Company’s Quarterly Reports on Form 10-Q for the quarterly fiscal periods ended October 31, 2022, January 31, 2023, July 31, 2023 and October 31, 2023, and in its Annual Report on Form 10-K for the fiscal year ended April 30, 2023 (the “FY 2023 10-K” and collectively with the foregoing Form 10-Qs, the “Relevant Reports” and the periods covered by the Relevant Reports, the “Relevant Periods”) should no longer be relied upon as a result of:

• the classification of the 2026 Notes as long-term liabilities on the applicable balance sheets within the Relevant Reports following the Event of Default; and
• the failure to reflect the Additional Interest in such financial statements (which Additional Interest, in the aggregate, was approximately $1.4 million through February 29, 2024).

The Company’s management also evaluated the effectiveness of the Company’s disclosure controls and procedures and internal control over financial reporting and the impact of the foregoing on the Company’s available cash resources, in each case as of the end of the Relevant Periods.

On March 11, 2024, the Audit Committee of the Company’s Board of Directors (the “Audit Committee”) determined, based on management’s recommendation and after consultation with Ernst & Young LLP, the Company’s independent registered public accounting firm, that as a result of the classification of the 2026 Notes as long-term liabilities, the consolidated financial statements included in the Relevant Reports should no longer be relied upon.

As a result of the information described above, the Company’s management has concluded that the Company’s disclosure controls and procedures were not effective at the reasonable assurance level and the Company’s internal control over financial reporting was not effective as of the end of each of the periods covered by the Relevant Reports, and the “Management’s Report on Internal Control Over Financial Reporting” included under Part II, Item 9A of the FY 2023 10-K should be revised to reflect this updated determination.

In connection with the above, the Company has identified a material weakness in internal control over financial reporting related to this matter. The Company’s remediation plan will be described in more detail in an amendment to the FY 2023 10-K.




2


The Company currently plans to present restated financials for certain of the Relevant Periods in an amendment to the FY 2023 10-K and to restate impacted financials for the subsequent Relevant Periods as soon as reasonably practicable.

The Audit Committee has discussed the matters described in this Form 8-K with its independent registered accounting firm, Ernst & Young LLP.

[cheynew]

Form NT-10Q filed.
PART IV — OTHER INFORMATION

(1) Name and telephone number of person to contact in regard to this notification

Daniel R. Hart (714) 508-6100
(Name) (Area Code) (Telephone Number)

(2) Have all other periodic reports required under Section 13 or 15(d) of the Securities Exchange Act of 1934 or Section 30 of the Investment Company Act of 1940 during the preceding 12 months or for such shorter period that the registrant was required to file such report(s) been filed? If answer is no, identify report(s). ? Yes ? No

(3) Is it anticipated that any significant change in results of operations from the corresponding period for the last fiscal year will be reflected by the earnings statements to be included in the subject report or portion thereof? ? Yes ? No

If so, attach an explanation of the anticipated change, both narratively and quantitatively, and, if appropriate, state the reasons why a reasonable estimate of the results cannot be made.

Revenues for the third quarter of fiscal 2024 were $33.8 million, representing an 11% decrease as compared to revenues of $38.0 million recorded in the same prior year period and a 33% increase as compared to revenues of $25.4 million recorded in the second quarter of fiscal 2024. For the first nine months of fiscal 2024, revenues were $96.9 million, a decrease of approximately 11% compared to $109.5 million in the same prior year period. The decrease in revenues for the third quarter and nine months ended January 31, 2024 compared to the same prior year periods was primarily attributed to fewer manufacturing runs and a reduction in process development services from early-stage customers. Additionally, the first nine months revenues were also impacted by a reduction of revenue for changes in estimated variable consideration under a contract where uncertainties have been resolved.

Gross profit for the third quarter of fiscal 2024 was $2.4 million (7% gross margin), compared to $9.8 million (26% gross margin) in the third quarter of fiscal 2023 and a gross loss of $4.7 million (negative 18% gross margin) in the second quarter of fiscal 2024. Gross profit for the first nine months of fiscal 2024 was $1.8 million (2% gross margin), compared to a gross profit of $23.1 million (21% gross margin) for the same period during fiscal 2023. The decrease in gross margin for the three and nine months ended January 31, 2024 compared to the same prior year periods was primarily driven by fewer manufacturing runs, a reduction in process development services from early-stage customers, and an increase in our costs related to expansions of both the Company’s capacity and technical capabilities. Gross margins during the nine months ended January 31, 2024, were also impacted by a reduction of revenue for changes in estimated variable consideration under a contract where uncertainties have been resolved, a terminated project relating to the insolvency of one of the Company’s smaller customers, and a delay in the ability to recognize revenues of a customer product pending the implementation of a process change.

Selling, general and administrative (“SG&A”) expenses for the third quarter of fiscal 2024 were $6.4 million, a decrease of 10% compared to $7.1 million recorded for the third quarter of fiscal 2023 and a decrease of 3% compared to $6.6 million recorded for the second quarter of fiscal 2024. SG&A expenses for the first nine months of fiscal 2024 were $19.2 million, a decrease of approximately 6% compared to $20.3 million recorded in the same prior year period. The decrease in SG&A for both the three and nine months ended January 31, 2024 compared to the same prior year periods was primarily due to decreases in compensation and benefit related expenses, and consulting fees.

Operating loss for the third quarter of fiscal 2024 was $4.0 million, a decrease compared to operating income of $2.7 million recorded for the third quarter of fiscal 2023 and an increase compared to an operating loss of $11.2 million recorded for the second quarter of fiscal 2024. Operating loss for first nine months of fiscal 2024 was $17.4 million compared to operating income of $2.8 million for the first nine months of fiscal 2023. The decrease in operating income for the three and nine months ended January 31, 2024 compared to the same prior year periods was driven by a decrease in gross profit partially offset by reduced SG&A.

[westjtter]

Well something better happen....performance stock options given to incompetent managers??? While they are restating the financials, they should restate and recall these ill gained options!

This is certainly a black eye!!!

Not only do we need to hear what happened but how they plan on getting things back on track and how they plan on supporting the falling share price!!!

No news on this issue, is bad news on this issue, and bad news results in pressure on the share price!

[djohn]

Signed Daniel Hart CFO Chief F*ckup Officer

[r622102675]

On the subject of hammers...don't they have clawbacks for removing cockeyed nails and ill-deserved performance stock option awards?...r

[r622102675]

I'm assuming this is the hammer being provided to the lawsuit outfits... https://www.sec.gov/ixviewer/ix.html?doc=/Archives/edgar/data/704562/000168316824001433/avid_8k.htm ...r

[Cubflyer1946]

And if approvals do not happen? Less revenue, no profits, idle capacity, higher interest on debt, and lack of faith in management's ability to run the company. This is what leads to bankruptcy!

Don't think it can't happen! Although a buyout would probably happen first, but nowhere near $10!

[ElSid18]

Only sellers,no buyers....market giving BOD vote of
no confidence !! looks like CC will be skipped....our new plant
is in hybernation "til someone gets FDA approval to make product!
The miscue with the finances is a whopper....what a scenario !!!!
GLTA.

[djohn]

Oh we lost $17mil so far in FY 24 and we’re still going ahead with hiring 16 paid interns for the summer?
Ms VP people is burning our money

[djohn]

Us retail investors are on a “need to know basis “ and I guess we don’t need to know right now.
Check out what our leaders get in a “change of control” situation
$10 is a 40% premium now lol

[jbainseky]

My last word.... did you read the applicable portion of the Indenture? It is not as clear cut as you make it out to be. Again, AVID has said worst case is restatement of $1.5M interest. That is not a large amount of uncertainty, even IF AVID is "at fault".

FFTT
JBAIN

[westjtter]

OK, my final comment here.....the problem with waiting, is that the longer there is some uncertainty with what the hell happened and what the hell is going on, and how this could have happened, the more the share price will suffer...who will buy a stock with a cloud of uncertainty hanging over it?

Investors want stability and confidence that management is on top of things!

[westjtter]

Exactly...I find the whole thing very bizarre...that fact that Avid was not notified...the fact that no one from Avid managment checked out the terms and the acceleration clause(who negotiated this anyway that allowed for this clause without any kind of notification)?

How can it be that no one understood that this convertible loan could be called if this interest rate(1/2 point increase) change was administered promptly by the CFO/Financial team members?

Something does not make sense here, but in the end, it is all about filling up capacity and we need a progress report here very soon!

[jbainseky]

I agree management needs to provide details. Regarding financials, it is not only the change in rate, but the magnitude and when the changes start as it wasn't clear when the two different rate changes were supposed to take place since the holder did not notify AVID of the issue.

[westjtter]

I understand, but restating financials should be relatively simple if it is just an interest rate correction. The "investigation" part of this is what intrigues me....is there a legal recourse here?

Regardless, management coud provide a little more clarity on this along with some kind of explanation as to how things went wrong and when they would be in a position to release the restated financials, set a date for the late CC, and hopefully fill in some of the blanks!? Plus, lets not forget about the many class action investigations going on....no lawsuit yet, but is one or more coming?

I don't know how much longer I can hold my breath!

[north40000]

This post raises questions whether Eastern CapitalKen Dart is now/will be collaborating with Sarissa/Alex Denner in raising share price of CDMO to higher/former level above $6.50.

[jbainseky]

Pretty sure they told us what happened - see post 345496

Pretty hard to have a CC and state financials until you know how much in interest you owe for the past! Thankfully, worst case, it is not a big hit on past financials.

FFTT
JBAIN

[westjtter]

Yes, not sure how long I can hold my breath waiting to hear something from Nick, but it is an Avid mandate to have 4 quarterly CC's when the financials are released. Quarterly CC's are pretty much the norm for publicly traded companies, so not sure if they can just ignore this mandate because of their convertible slip up(or perhaps f--- up is more appropriate)?

I believe this is a pretty critical event that requires some kind of explanation along with some kind of assurance that this was an oversight by all of top managment and their legal department, and steps have been taken so this kind of thing does not happen again! As shareholders we have clearly been damaged financially as has the credibility of Avid. Last I counted there were 7 independent class action legal investigations ongoing....now none of these may turn out to be class action lawsuits, but still an area of concern.

Were we(Avid) set up here by the original lenders of this convertible? Management did manage to negotiate a new convertible loan fairly quickly, albeit with a much higher interest rate....but still, that was a very smart and quick move so management did show some resilience! But I am certain there is information that we as common shareholders are still not privy to, and I believe we do have a right to know!

If there is a legal entity which negotiated this and was to administer the terms of this convertible financing, perhaps there is legal recourse(yes I know I am reaching) here?

In any event, the lack of setting a date for our quarterly CC has to be addressed....it cannot be ignored, so I as I have indicated earlier...very, very curious what might come out and how Nick is going to spin this, or if he is even going to spin it at all.

He may just say....heh we screwed this thing up, sorry, but this does not fundamentally change the outlook for Avid going forward and.....yada yada yada!!!

[r622102675]

If i'm reading this correctly OncXena's 2nd round of funding came from a venture fund Panacea Ventures in 2019 https://tracxn.com/d/companies/oncxerna/__kViAPtM8iAtZ6MvQALAA7HKvabipF79gRwoUzeR6ACA/funding-and-investors well they are out of the Cayman Islands ...close proximity to Mr Dart... https://www.sec.gov/Archives/edgar/data/1730485/000173048518000001/xslFormDX01/primary_doc.xml and OncXena is incorporated in the Caymans https://www.sec.gov/Archives/edgar/data/1914838/000156761922006334/xslFormDX01/primary_doc.xml ...r

[djohn]

Don’t hold your breath

[westjtter]

That and $10 buys you a coffee at Starbucks??? Actually, the coffee is worth more than these kinds of articles which are not based on any kind of research, but just compared against a basic algorithm....I doubt if Yahoo even uses any kind of algorithm.

We really need to hear from Nick to find out exactly what happened and how and if it impacts Avid going forward. I care less about profits right now and am more concerned with positive cash flow.

It still is all about filling up capacity, and perhaps Nick could provide some kind of "projected" timeline?!

But first things first...what the hell happened, who is to blame, is there legal recourse, and how does this impact Avid going forward.

[ElSid18]

https://finance.yahoo.com/news/avid-bioservices-inc-cdmo-releases-010131867.html

[r622102675]

Does everyone think that Eastern Capital got bought out of the preferred shrs and just disappeared from the scene? … wasn’t he involved with the Argentina bond default controversy?…r

[djohn]

From what I have read, these arbitrage people that put together convertible deals are sharks. They make money either way. They were playing hardball when Hart and Ziebel with the approval of Nick and BOD were playing T-ball.

[djohn]

I think that also. This was a forced refinancing by a original note holder sick and tired of getting only 1.25%(no prospect of a convertible profit) on their money, so they found a legal(loophole) way out.
Could very well be the same note holder doing the refinancing. Could very well be that the same note holder made money shorting the stock last few months.
Now we have to deal with the dismal results over the last 3 quarters!
Can we still make decent margins with all input costs increasing and new interest costs coupled with lower demand for PD work???

Please stop saying that with only a $206mil back log we can make a profit WE CAN'T. thats over 5 quarters.
That's $41mil in rev a quarter. In FY24 first 3 Q Rev was $97mill and we have lost $17mill
At $41 mil per quarter we barely break even.
We need new business fast.!!!!

[jbainseky]

If I were to venture a guess, the "new" bond buyer is the same as the old and they will forgo the interest meaning the financials don't have to be restated and we move on. That will also head off any lawsuits etc.

FFTT
JBAIN

[westjtter]

So far the analysts covering this stock have laid kind of low....you would think that if this was cut and dry, they would have immediately downgraded the stock....they are probably also waiting to find out exactly what happened, who was to blame, and if there is some kind of legal recourse as an option?

It seems some of the sellers went with the.....sell now and ask questions later, or just sell now and get the hell out of Dodge. They may have made a big mistake as the stock price so far has held up very well...much better than I thought it was going to after the initial news came out.

Once again, while the third quarter revenues were not great, they did add to their backlog and like has been mentioned before, when these late stage drugs get approved, this backlog turns into revenue and profit.....well at $200 million in annual revenue this should be a pretty decent cash cow and it only gets better as the revenue climbs......assuming the sales are there!!

So yes I do hope that we get a CC and find out exactly what happened and what happens now.

At the very least, the new convertible gives them lots of time to right the ship and fill up the capacity!

Still think a buyout may be in the offing here, but if so, hopefully the stock price recovers enough by then to at least warrant a $15 plus buyout?

Very curious to find out more!!!

[jbainseky]

Long post, but pay attention….. things are not as bad as they appear. So what happened?

It is all due to Article 2 (specifically 2.05.c)) of the Indenture between AVID and the trustee, U.S. Bank National Association.

AVID sold the 2026 notes back in 2021. The U.S. Bank National Association was the Trustee and tracked who owned the notes. Initial issuance are “Global” notes defined in 2.05.(b).

So long as the Notes are eligible for book-entry settlement with the Depositary, unless otherwise required by law, subject to the fourth paragraph from the end of ??Section 2.05(c) all Notes shall be represented by one or more Notes in global form (each, a “Global Note”) registered in the name of the Depositary or the nominee of the Depositary. The transfer and exchange of beneficial interests in a Global Note that does not involve the issuance of a Physical Note shall be effected through the Depositary (but not the Trustee or the Custodian) in accordance with this Indenture (including the restrictions on transfer set forth herein) and the procedures of the Depositary therefor.

These notes restricted resale/transfer of the notes for one year after issuance (Resale Restriction Termination Date). All notes prior to the end of the restriction carried the Restrictive Legend.

Any Note (or security issued in exchange or substitution therefor) (i) as to which such restrictions on transfer shall have expired in accordance with their terms, (ii) that has been transferred pursuant to a registration statement that has become effective or been declared effective under the Securities Act and that continues to be effective at the time of such transfer or (iii) that has been sold pursuant to the exemption from registration provided by Rule 144 or any similar provision then in force under the Securities Act, may, upon surrender of such Note for exchange to the Note Registrar in accordance with the provisions of this ??Section 2.05, be exchanged for a new Note or Notes, of like tenor and aggregate principal amount, which shall not bear the restrictive legend required by this ??Section 2.05(c) and shall not be assigned a restricted CUSIP number. The Company shall be entitled to instruct the Custodian in writing to so surrender any Global Note as to which any of the conditions set forth in clause (i) through (iii) of the immediately preceding sentence have been satisfied, and, upon such instruction, the Custodian shall so surrender such Global Note for exchange; and any new Global Note so exchanged therefor shall not bear the restrictive legend specified in this ??Section 2.05(c) and shall not be assigned a restricted CUSIP number. The Company shall promptly notify the Trustee upon the occurrence of the Resale Restriction Termination Date and promptly after a registration statement, if any, with respect to the Notes or any Common Stock issued upon exchange of the Notes has been declared effective under the Securities Act.

Note, the Company is entitled to, but that doesn’t mean it HAS to instruct the Custodian to surrender the notes so new ones without the restrictive legend can be issued, But the company does have to notify the Trustee the restricted period is over.

So, on March 17, 2022, either notes were presented to the trustee for sale/transfer/re-issue and the new notes continued to carry the restrictive legend, OR the holder is claiming it was the company’s responsibility to request the global note(s) be surrendered for exchange and new notes without the restrictive legend be issued.

If it was very clear the company was at fault, there is no doubt the previous financials would have to be restated, and since the company is still investigating, and explicitly said they had received no notifications of the issue prior to the acceleration notice, I think it is questionable whether AVID owes the additional interest. My guess is the note holder invested with the expectation there would be a buy-out, or the PPS increased substantially for an exchange etc. In fact, if you go back to the 2026 notes PR regarding the covered calls, it says

“In connection with the pricing of the notes, the company expects to enter into privately negotiated capped call transactions with one or more of the initial purchasers and/or their respective affiliates or other financial institutions (the “option counterparties”).”

So the cost of the covered calls went back to the note purchaser immediately as profit! The calls capped the company's exposure, but at the same time made it worse for the bond holder if the PPS went higher than the call value as they would have to cover the calls. As I’ve said before, no one invests in 1.25% notes without knowing they are going to make money some other way on the deal. I imagine they expected a buyout by now, and when it didn't happen, asked their lawyers "how can we get out of this 1.25% deal. Waaalaaa! Then they start shorting CDMO and drop the restrictive legend bomb, issue the acceleration and cover the shorts.

Again, WORST CASE is CDMO owes an additional $1.5M in interest, and the new notes will cost them higher interest for the next 5 years. I wouldn’t at all be surprised if it is the same entity buying the 2029 notes that owned the 2026 notes. AND it sure would be good to know who the initial buyer was of the 2026 notes and if they were sold etc. That would tell who triggered this event.

FFTT
JBAIN

[bfiest]

The question is, will they even have a call this quarter. They already met their legal obligation filing the 8k. My bet is no call this quarter. Will we see another quarter under the current BOD and management is the big question? I hope they do have a call. I hope we see another quarter. Selling from a position of weakness when there is significant untapped potential is more than unwise.

[4OurRetirement]

Didn’t The Contract With Oncologie Include A Clause…

That If Oncologie Didn’t Do Certain Things That Bavi, BetaBodies, Etc., Would Revert Back To Avid? I Thought So, But Can’t Swear It Did.

If Oncologie/OncXerna Is Truly Out Of Business, Where Does That Leave Those Contractually Linked Assets?

Glta Bulls, Watchers, & StockHOLDERS!

[bfiest]

Personally I don’t want to see them selling from weakness. Especially since they have 8 late stage products awaiting potential FDA approval. Nick indicated with the right combination of approvals they could fill capacity. They already have 1 approval. I’m hoping to hear a positive tone in this quarterly call with a proactive approach — forward planning for the future.

[bfiest]

The conspiracy was likely the fact that the company and OncXerna knew that OncXerna would never be able to pay royalties. They would not have the resources. So the contract was just for appearance. OncXerna was never going to take Bavi to phase 3, assuming it proved out, until after Avid was sold. And both companies knew it.

Interesting. Where did you hear the OncXerna ran out of money? Not sure why they have a site under maintenance if they are out of business? Unless they are in the process of soliciting for funds and plan on continuing once they get funded.

[stoneroad]

OncXerna ran out of cash, could not raise any additional funds and is now defunct. Pretty straight forward. No conspiracy theory.

[djohn]

Pretty good explanation to what happened to Avid

Avid Bioservices had an oopsie https://t.co/SGTBjxOLAz

— alexandra scaggs (@alexandrascaggs) March 7, 2024

[djohn]

What happened to AVID SVP, LLC did this have something to do with this mess?
https://www.sec.gov/Archives/edgar/data/704562/000168316821001744/avid_ex0201.htm

https://fintel.io/so/us/05369gaa6

[north40000]

Repeat the question posted previously: A.S. and his ANIP and MedPage possible M&A activities.

[r622102675]

Well not to encourage a potential conspiracy here but I thought the weds night pr containing this paragraph was rather strange at first glance…” The 2029 Notes and any shares of the company’s common stock issuable upon conversion of the 2029 Notes have not been and will not be registered under the Securities Act, any state securities laws or the securities laws of any other jurisdiction, and unless so registered, may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and other applicable securities laws.”…imao…r

[harry crumb]

Probably crawl back to 8+ again, we bought in again, we’l hold for the 8’s, should be an easy trade

[4OurRetirement]

I Wonder If The Buyers Of Original SeniorNotes…

For Avid Were Related To Or The Same Entities As The Investors Behind OncXerna Therapeutics, formerly known as Oncologie.

Thanks For The Reminder About Bavi, etc…

I Agree, If $CDMO Is Bought, I’m Sure There Will Be No Mention Of Bavi, etc…

Glta Bulls, Watchers, & StockHOLDERS!

[westjtter]

So who might be the buyers today after yesterday's bloodbath and sell off??? Are these really Avid bulls who believe that the botched convertible financing was no big deal, or rather are they vultures moving in on the chance that Avid may possibly be bought out at what may be a below market value, but still would make a quick profit for those buying today!

In any event, the sooner Nick and crew get the financials corrected for the last 6 or 7 quarters(which really is just an interest calculation...there is no forensic accounting involved here) and then hold a "come to Jesus" conference call, we will at least know where we stand going forward.

There must be a lot of scrambling going on in Tustin, and we have a right to know what is happening before these legal "investigations" turn into lawsuits!

[bfiest]

I know we have been purposely kept in the dark concerning any progress Bavi is making in clinical trials. Many don’t even want to discuss it which has likely been the company’s objective all along. They want us to forget about Bavi. So much so that OncXerna’s website has been down since last Nov. for “maintenance”. And of course the phone number listed for OncXerna no longer works. Now I know something about site maintenance. It doesn’t last 4 months and if for some odd reason it does — you never take down the original site while such maintenance is occurring. They want nothing out there. That is obvious to me. I’ve talked to Rolf Brekken about Bavi and he says that he also is wondering why it’s taking so long to progress Bavi through trials and come to a decision. But he is in the dark also. So he couldn’t offer any further color on the subject. I’m trying to get a hold of the current lead investigator as we speak.

OncXerna going underground with no published website and a non-working phone number occurred coincidentally after I asked the SEC to make public the specific timeline for Bavi royalties which amounts to 96 million accumulative prior to approval as it completes certain phases of specific trials. It is these phases of current trials which is the information that has not been made public.

And if Bavi is approved Licensee shall pay to licensor royalty fees as follows:

A: an amount equal to 9% of aggregate net sales (in all countries and territories) of up to $100,000,000 of each product;

B: An amount equal to 11% of aggregate net sales (in all countries and territories) from $100,000,001 to $200,000,000 of each product;

C: An amount equal to 13% of aggregate net sales (in all countries and territories) from $200,000,001 to $500,000,000 of each product;

D: An amount equal to 14% of aggregate net sales (in all countries and territories) from $500,000,001 to $1,000,000,000 for each product;

E: An amount equal to 16% of aggregate net sales (in all countries and territories) equal to or greater than $1,000,000,001 for each product.

The latest phase 2 results for Bavi in conjunction with Pembrolizumab “Keytruda” can be found here.

https://www.onclive.com/view/bavituximab-plus-pembrolizumab-elicits-responses-in-untreated-advanced-hcc

I am not saying Bavi will be approved or even be eligible for royalty payments. That has yet to be announced. I am just wondering why Avid’s BOD and management purposely seem to keep us in the dark on this subject. Especially now since Royalty money would be highly valued during this crisis. And of course if there is a low ball bid for the company I’m sure Bavi potential will not even be mentioned.

Unfortunately the person responsible at the SEC refused to make trial specifics public. The reason being it would compromise any future contracts with other companies that Avid may be involved in. I certainly could not understand and argued against this since Avid is NOT in the drug creation business. But she would not budge. My argument was it has nothing to do with their competitiveness and everything to do with the potential value that Bavi may hold to the company and its shareholders — which at the time of any potential low ball sale — will likely not even be mentioned. Not to say anything for any royalties Avid may accrue by meeting certain milestones. That is money that would certainly come in handy at this time.

I felt it important that everyone know this at this delicate time in Avid’s history. Again I am not presuming value of any kind. I’m just wondering why the company is going to such lengths to keep things quiet about any progress Bavi is making or any value Bavi may hold at this current time. And in my opinion I’m wondering why it’s taking so long for OncXerna to come to a decision on Bavi and progress it to phase 3 trials — or cut it altogether.