Avid Bioservices Inc (CDMO)

[exwannabe]

PPHMP conversions

The .88 issue is a non issue; The basic story of PPHMP is:

1) Each share of PPHMP is "owed" $25, but there is no time-frame for this to be paid other than dissolution. So one can not cash in for $25, but will collect 10+% until paid the $25.

2) Additionally there is a convert option at $3. So if PPHM goes to the moon, the PPHMP owner can convert at a $3 and get 1/3 the way there.

3) In a change a control, the PPHMP share can cash their $25 value out in PPHM shares at prevailing market price. This is really not a big deal.

The reason for that .88 number is that option 3 otherwise causes some technical issues. The .88 LIMITS the number of shares that a PPHMP holder can get. It is actually a negative for PPHMP (though of near zero meaning).

EDIT: The big drawback of PPHMP is that there is virtually no way to cash out. The market is REALLY thin.