Avid Bioservices Inc (CDMO)

[Carboat]

Avid does not have 50% margins as in profit margin. No one knows what if any profit Avid would make as a stand-alone entity. Manufacturing - even biologics is a low margin business. It requires very large scale to become a substantial profit generating enterprise. PPHM use of ATM money for Avid is a problem. ATM funding works in high-risk/high-return environments. A company like Avid would normally have access to lines of credit, loans and other "normal" financing. If Avid was not consolidated pphm and shareholders would need less dilution and have higher gains should they succeed with Sunrise.