Avid Bioservices Inc (CDMO)

[EYEBUYSTOX]

DILUTION: The Board of Directors are diluting shareholders.

Assuming the company had the ability to do so, partnering with a well-known company at an earlier stage for a modest amount of money would have set a strong floor for the stock price and kept the shorts at bay. The company chose to keep 100% of the IP so, in doing so, made it abundantly clear that the shareholders are going to be the ones keeping the lights on and paying the price until the phase 3 trial nears completion. Don't blame the shorts.

The "shorts" are doing so because this company has made it clear that they have no intention (or ability) to partner with another company that takes away their US rights to bavituximab.

You can't have it both ways. And by wanting to retain 100% of the IP, they sent a clear message that dilution will continue until bavituximab is on the market. Management and the board does not care about the current stock price because they, literally, get hundreds of thousands of new shares every year. As long as the ultimate outcome is positive they don't care how long it takes. Now, keeping pace with that dilution as a retail shareholder until the phase 3 results read out is a very expensive and possibly foolish proposition for most IMO.