Avid Bioservices Inc (CDMO)

[Carboat]

I can think of three ways it was abused:
1) It was clearly abused to funnel build out Avid. A manufacturing company does not use ATM funds there are so many cheaper sources of money.
2) It was abused to pay the BOD of a failing penny stock selling for $.3x a share more than most Fortune 500 companies.
3) It was abused by using ATM funds to maintain a staffing level the same pre-Sunrise failure as after.

ATM funding in the hands of weak management is problematic. It is a moral hazard that you feel can bail you out of any failure.