Avid Bioservices Inc (CDMO)

[newbieee]

Number one, there's nothing criminal going on here. Number two, they aren't sucking money out, they're funding operations. Yes, as a result they're diluting all shareholders. The thing is, management has warned us that dilution could happen so anyone buying shares is taking on that risk. There's a section in every 10K and 10Q that's titled "THE SALE OF SUBSTANTIAL SHARES OF OUR COMMON STOCK MAY DEPRESS OUR STOCK PRICE." that warns investors about this. The latest 10K goes on to say "In addition, we will need to raise substantial additional capital in the future to fund our operations, including our Phase III SUNRISE trial. If we raise additional funds by issuing equity securities, the market price of our securities may decline and our existing stockholders may experience significant dilution.". Don't blame management for this situation. If anything, blame yourself for buying shares and ignoring the obvious pitfalls.