Avid Bioservices Inc (CDMO)

[biopharm]

BP "A" vs BP "X" looking for control of Peregrine Pharmaceuticals:

Without the Split = BP "X" that currently owns at least 50% would end up owning 35% of the total outstanding shares, while BP "A" that pays a big premium for 100M shares from the authorized would only end up with about 30% ownership.

With a RS split at 1 share for every 7, we have this scenario that unfolds and finally forces that BP "X" from 50% ownership down to about a mere reasonable 17% ownership and boosting BP "A" the new one paying a premium for 100M shelf shares peaks at about 75% ownership. I believe a version of this story is being played out as we speak... but I think one can understand, especially some new BP will not make some deal unless they are guaranteed to be become the majority shareholder owners.

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Those authorized shares (which IF not split will mean they are worth x7 immediately after the reverse split) and some Big Pharma party that has been strong handing Peregrine possibly, could finally make a deal for double the money deal that could be present today and that party still saves a bunch...

For example: lets take 100M shares (now OS becomes 241+100=341) and say some BP "A" would pay "AVERAGE" price $50 per share and represents about 30% ownership BUT remember... BP "X" that currently owns possibly 50% of the company (241/2=120 abouts so a deal that would be made without doing a RS that BP "X" actually would own 120/341 = 36% abouts of PPHM

Read slowly and think it through... a new BP "A" does not want to invest and still not be the overall majority shareholder!

Now if BP "A" also wants and strongholding Peregrine to RS... and after the RS, now those 100M shares at stake to be handed out would be worth what percentage ??

120M pre-split now becomes 120M/7 = lets call it 17M ... so now we have 100M (that would not be split..) and about 34M (split down from 241) and new total OS = 134 Million shares with the new BP "A" now HAPPY while sitting at 74% ownership