Pretty good deal. Destroy the company financially and pick up $12 million

More and more uses for the compound which means a lot more demand.

What an absolute steal.

And Avid sits with idle capacity.

Quite the Sales and Finance team Nick put together!

Despite all the disasters (including the sale) most of the folks on this board made some money.

But that was to the genius of building out a CDMO with the potential of Bavi.

Incredibly, Nick and management team somehow destroyed shareholder value by expanding capacity.

A fitting ending would be if Jeanette was running the Hedge Fund that did the buyout
God's speed everyone for enduring.

Shares are halted today.
But feel free to contact Stephanie.
She has always been a wealth of information 🤣

Couldn't determine North. Only thing I saw was that Pfizer has done their manufacturing for other licensed products.

Dr. Rocker,- I think you are absolutely correct on what transpired and the collusion between the current and former board members.

Here is some additional food for thought. Now with the implementation of tariffs on imported goods and those manufactured outside of the US, can you imagine how the value of a US based CDMO (with excess capacity) just increased in value? I would suggest at least 50%.

This has to be one of the worst buyouts ever transacted (for shareholders).

I think we understand the impact of the last ill-advised financing and the almost insurmountable hurdle that caused but I still don't understand why operationally the new facility was not able to generate revenue? Their explanation of higher interest rates and less biotech research never made sense. Was it the wrong market and just a strategic blunder? Also, whatever happened to that Belgium guy?

In the percentage differentials showing what a great deal this is for shareholders, they forgot to show a - 63% share price discount from the high attained BEFORE the expansion and team Avid financing debacle.

Vote NO and Make Avid Great Again.

Glazer is a merger/arbitrage firm and this was a nice setup for them. With the stock pinned at around $12.50 it looks like they sold the Dec 20 calls (10,000) as well as bought 3.5M shares. If a better deal were to come through, they make money on the common, if nothing happens by Dec 20, then cash the premiums. So for a 12 day play they make about $250,000 (or more based upon their borrowing rate). A nice, relatively risk-free strategy. Everybody making money except the long-term shareholders.

Our problem is that Blackrock and Vanguard usually vote with management.
Ironic how some of these other institutions started loading up when the stock was $7 and below.
CDMO has always been notorious for leaking information.
Just look at the price action before poor earnings and the financing blowup.

Getting Support to show this is a lame offer engineered by the Board:
BRIEF-Brock Pond Capital Partners Urges Avid Bioservices To Remain Standalone Public Company Absent Improved Offer

Board of Directors
Attn: Corporate Secretary
Avid Bioservices, Inc.
14191 Myford Road
Tustin, CA 92780

Dear Board of Directors,

My name is Prasad Phatak and I am writing to you in my capacity as Managing Member of Brock Pond Capital Partners LLC ("Brock Pond"), a private investment manager. Through my investment fund and personal interests, I am the owner of ~1 million common shares of Avid Bioservices ("Avid" or the "Company"), more than the entire Board combined. As members of the Board and management are also aware, I have been an owner of Avid continuously since 2017 to varying degrees, first through my prior entity Tappan Street Partners LLC where I was the Company's largest shareholder and more recently through Brock Pond. I have seen numerous CEOs, witnessed the transition to a pure-play contract manufacturing business, recent facility expansions, and unfortunately, a variety of capital market missteps. I believe the Company's own management team would agree that I know Avid's business very well, especially given the duration of my involvement. For that reason, it should be very telling that I am disappointed in the Board's recommendation to accept the transaction proposal, which I believe significantly undervalues the Company. Absent an improved offer by GHO/Ampersand (the "Acquirors") or another buyer, I believe the offer does not compensate shareholders for Avid's significant expected growth in the near and medium-term and I intend to vote against the proposed transaction. Shareholders would be better served by Avid continuing to operate independently, allowing public markets to more appropriately value Avid's increasing cash flow over time. The Company's strong backlog and pipeline of late-stage projects significantly de-risks its growth profile versus other companies.

Change of control provisions that will trigger vesting of options and years of severance and health benefits.
Not bad for the damage they did to the company.

Wait until the lawyers go through the financial disaster of the refinancing and tie that into the decreased valuation of the company.

Ha-That didn't take long. Usually these are nuisance filings but, in this case, warranted.

If I recall correctly, the connection here is Mark Bamforth. He was on the Avid Board then went off and started a CDMO called Brammer. They became part of the Ampersand Portfolio. Bamforth now works at Ampersand.
Good price based upon current net income.
Terrible price based upon the expansion capabilities.

Just don't understand why these new facilities aren't humming.

Transaction to be completed in October.

Humanigen management ran the company into the ground, didn't need to file bankruptcy except that prior management got the company for a credit bid, and netted that out with the Australian receivable.

Terrible managers of the business but brilliant in bankruptcy proceedings. Give the BOD props for that one.

Did we ever get played.

Great summaries of the filings, Biowa.

Everything that Patheon wrote is 100% accurate.
Doesn't matter when the account was created or the motivation, all info was from the filing documents.
The only asset HGEN may still have are the NOL's.

I have not yet seen that determination.

Does anyone else find it curious that Cam can assemble a syndicate to take our company private for $2M, yet could not find a syndicate to keep the Company running to enable shareholders and creditors to recover their money? Which would have been in the best interests of everyone. Makes Martin Shkreli look like an amateur.

BioWa has requested all filings be directed to their lawyers, an IP and Financial restructuring practice.

Again, you are 100% correct, Moderna.
Only one person does well in this entire deal and everyone else gets burned.
And we know who that is.

Spot on, Moderna. This is exactly the billion dollar question. If the CMML trial is outsourced but HGEN now owns the IP and Lenz, why are the assets being sold. All that is in the SC&H declaration is that-we think this is the best alternative. Except that strategy was based upon data prior to release of the interim results which had the potential of being a game changer, according to the lead investigator. As shareholders, we should be concerned as to why this is being done instead of a royalty agreement and as an expedited Section 363. Simply, this is wrong. We may not have the capability to run multiple trials, at this point, but we clearly know the approval process could begin relatively soon with consistent results. And if the current CEO is not committed to the program under reduced pay, we'll find someone else.

This would be in the interest of employees, creditors and shareholders. Not the transfer of the assets for a pittance.

The Chapter 11 filing shows that there are 110M shares outstanding.
Any other transactions for the authorized shares would be in an SEC filing.
Educate yourself. Read the filing. Ask questions.
It will help you.
There may be some options here.
Just not the ones you are postulating.

Scheme is an accounting term as in methodology. Not as in nefarious as you seem to interpret.
Cam is buying the assets inclusive of the intellectual property. What is then left?
Again, read about the milestone payments and then ask your questions.

Time to school you as you obviously haven't read the court documents. The Company is in Chapter 11. This is a section 363 filing of the bankruptcy code. The stalking horse is Cam and his syndicate. They have filed their purchase agreement and this sets the bid. The DIP financing is $2 million. That in and of itself would wipe out the stock as there is considerably more than $2 million in unsecured claims. However, you need to understand the potential for milestone payments that are part of the bid. After you have read that, and fully understand what it means, then you can "obviously" tell us what you think it means and then, I will tell you if you are correct. As of now, your comments have nothing to do with the Chapter 11 filing.
While this is unpalatable, it was a pretty good move by Cam to continue with the Ifab/Lenz program.
But there will not be a reorganized Humanigen conducting Lenz trials.

Here's the short version. Cam Durrant gets a bargain price for the company, free of encumbrances. Shareholders are wiped out in this scheme.
Cam will make an immense fortune as we know the CMML trials are going well.
We got played.

Avid lowered guidance and missed on EPS. Two things that are inexcusable to Wall Street and investors, regardless how the Company got there. I liked the Ronin philosophy, no expansion unless they had customers. The stock will come back but it has been extremely poor execution by this team. And the insider trading/tips have been extremely obvious.

I certainly give you credit for always being an optimist and supporting the St. Nick lump of coal that was dumped on us. But here is what happened, the "brilliant" financing (as to how you refer the convert) had a small interest rate kicker and it was thought the shares would convert so there would be additional shares issued and no refinancing required. In theory, the expansion would increase sales and offset the dilution (to be accretive). So now we have lowered guidance and capex that will need to be refinanced. All things being equal, if this were done today it would probably be around 5% and a strike price of $6. Bad timing by Nick and the boys especially with all the new hires (including business development that don't seem to be accomplishing much).
But here is the more important issue, have you noticed on multiple occasions this stock has moved significantly about 10 days prior to earnings? I think this is not a coincidence and am appalled when this happens. However, I have used it as my buy/sell signal.
Unfortunately for those long, it is going to take time.

Yup, the only winner is Nick and his compensation package.

How much should a management team be paid tripling the survival rate (and probable cure) in a rare cancer and which may have additional indications?
That part of the dialogue always seems to escape the conversation.

There are four components to the loan. The interest rate, the dilution, the conversion strike price, and the cap call cost. That's how one determines the total cost. But if you want to continue to say brilliant, that's up to you. If someone says I will buy your house and refinance your outstanding mortgage for 1.25%, but will pay you $300,000 less than market value, would you say what a brilliant transaction? That's my finance lesson for today.

They indeed needed to finance and expand, and the SP is beaten down because of the sector, so there is a buying opportunity.

Westjetter, I have explained this before, but you continue to delude investors with your analysis of the balance sheet with this comment "1.25% interest rate was/is brilliant." That deal cost us $13 million in capped call options which will expire worthless and dilution in the stock which impacts our ownership as shares went from 56M to 63M.

Regardless, in that we have achieved cub's target, I have started a new position as we are close to the floor of being beaten down.

ok,I'll bite.
What are they possibly hiding?

Wait, let me go get some popcorn.

Ok, we just came full circle to the nonsensical realm of fiduciary responsibility, and they have moved on even though Dale still has over 11 million shares for some reason.

What could they possibly be hiding by not filing-that they are almost out of cash and still fighting nuisance lawsuits?

Not exactly a new revelation.

Yes, like putting $14M into a failed, disgraced company called Kalbio because the value of Lenz and Ifab was recognized.

Now you're catching on.
If by some miracle the stock isn't cancelled and is being recapitalized, albeit diluted, Dale will make a fortune.
And that is our only hope to get our money back.

And why do you think Dale sold just enough of his 12 million shares to get under 10%?
I'll give you a hint, look up principal shareholder and veto rights.

You got me. I went to Dale and told him it was his fiduciary responsibility to pay me as a promoter. He agreed. We're splitting millions.
Just trying to inject some truth. Easy to blame with no basis as you constantly do, but I focus on trying to understand what went wrong and what the options are going forward.
Too bad more time isn't spent on that discussion.

I guess I missed where they filed bankruptcy.
In dire straits yes, but have not yet filed.
People always want a scapegoat but it is NIH and FDA who put us in this bind-not the CEO.
NIH with the inadequate statistical parameters in design trial and FDA with the contractual requirements and no accountability.

I just looked at the bylaws of the corporation and there is no fiduciary responsibility to provide paid in capital to fund a 10Q filing. But I think you knew that. You'll be the first one to post if an insider gets hold of the company's shares with a minor cash infusion-which would then get SEC filings up to date. There is no responsibility for current shareholders to basically do a crowdfunding to pay auditors-who by the way would just give it a non going concern opinion. That accomplishes nothing for us.
Now if you are asking if we would like additional information, that's valid. We'll get an update on CMML in a few weeks and that might give us some insight where the Company is headed.

Cam has the lifeboat, flashlight and compass and is fighting off the sharks.

I'm staying with him.

Your solution is that the Company should go to any shareholder that made money on the stock and ask them for additional funding to file a quarterly report that says they didn't make money? If Cam asked you for extra bucks your response would be? Never mind, think that would be the same answer from any other shareholder.

And I think hundreds of millions is a bit of an exaggeration. Regardless, the answer remains the non filing was to save what little money is left in the till. It has no bearing on what the future will be.

Anyone have any idea what happened to the C-Smart Phase 2 trial on Covid and Cancer? I did see the trial ended in April and appears to be an update in August.

Couple of hundred thousand, which the Company does not have, to say they didn't make any money is the probable reason.