Avid Bioservices Inc (CDMO)

[n3m3sis]

Reverse Split? No Problem!

When a company splits its shares, the market capitalization before and after the split takes place remains stable, meaning the shareholder now owns more shares but each are valued at a lower price per share. Often, however, a lower priced stock on a per-share basis can attract a wider range of buyers. If that increased demand causes the share price to appreciate, then the total market capitalization rises post-split. This does not always happen, however, often depending on the underlying fundamentals of the business.

I respectfully suggest that the business fundamentals of Peregrine Pharmaceuticals (PPHM) are very sound, that a reverse split 2-1 or 3-1 does not need to be disastrous and could indeed work in our favour. Should PPHM immediately after the split, announce commencement of commercialisation of the Exosome test kit and reiterates what it means for early cancer diagnoses and patient outcomes with a Big P partner, or a licensing agreement again with Big P, then the value of the split shares will rocket. Also remember that PPHM has a pipeline that has further value down the line, in other words not a one-trick pony.

Forget the gloom and doom and look forward. The future is bright with PPHM. Hold onto your shares for dear life!!!!