Avid Bioservices Inc (CDMO)

[exwannabe]

Cloak, wrt RS and voting shares:

It is not the shelf per se that is the issue, it is number of shares authorized. The shelf can be changed (or a new one registered) whenever they choose w/o shareholder voting. The authorized shares do require a vote, and limit future share issuance.

On the last RS, they state the following in the Proxy

Although the Reverse Split will not have any dilutive effect on our stockholders, the proportion of shares owned by our stockholders relative to the number of shares authorized for issuance will decrease. As a result, the additional authorized shares of common stock will be available for issuance at such times and for such purposes as the Board of Directors may deem advisable without further action by our stockholders, except as required by applicable laws and regulations. In accordance with NASDAQ Stock Market Rules, we would be required to obtain prior stockholder approval if we intended to issue common stock, or securities convertible or exercisable for common stock, at a price less than the greater of book or market value of our common stock, in any transaction or series of transactions if the common stock to be issued has, or will have upon issuance, voting power equal to or in excess of twenty percent (20%) of the voting power outstanding before the issuance of such stock, as further defined by Nasdaq Rule 4350(i)(1)(D). In addition, we do not have any present plan or intention to issue the additional shares of authorized but unissued common stock that would become available as a result of the proposed Reverse Split.

So what happened was exactly what you are worried about. But the number of shares authorized also needs to be reverse split in order to leave the control (to whatever extent it really exists) in the hands of the existing common.