Avid Bioservices Inc (CDMO)

[swg_tdr]

CP DRAFT 4U but our legal beagles should draft the letter

best,
N


To
King
Registered Letter to Peregrine Legal Dept, Attn all other Board Members
cc SEC
cc Our designated PPHM member of this board

Gentlemen, RE Legal Notice Cautioning On Further Dilution of Voting Power

This is to put you on notice that in any contemplated reverse stock split by Peregrine Pharmaceuticals, I fully expect that any and all shares of the Company's common stock outstanding, as well as the number of shares of common stock available (1) for issuance under any existing or future shelf, and (2) under any equity incentive plans shall be reduced equally in proportion. In addition, the reverse stock split shall reduce the number of shares of common stock issuable upon the conversion of shares of preferred stock or upon the exercise of stock options or warrants outstanding.

As a result, each stockholder's percentage ownership interest and proportional voting powers shall remain unchanged and the rights and privileges of the holders of the Company's common stock shall stay unaffected.

Sincerely,

PS As to the previous five to one (5:1) stock split, that contrary to my reasonable expectation following the proxy soliicitation, did not adjust the outstanding issuable shares, we have seen pre-reverse-split shareholders' value and voting power reduced and steadily eroded, by the firm's continuing massive issuance of old non-split shelf shares at every decreasing price and by a continuing indulgence in grossly inflated salaries and options to a non-contributing board and others.