Avid Bioservices Inc (CDMO)

[itsabouttime]

cheynew


If I understand this correctly PPHM can purchase back all preferred shares at par value without conversion on 2/11/17 or when acquired. If they hit the strike price @ 3$ prior to this it can/will convert into 8.33 common. Correct??


Since PPHMP is a convertible issue, there is some potential upside if Bavituximab is successful. Each share of PPHMP is optionally convertible into 8.33 shares of PPHM. PPHM is now well below the $3 strike price, but large stock moves are not uncommon in the pharmaceutical sector. Note that PPHMP can be called at par on 2/11/2017 or immediately if the company is acquired.