Avid Bioservices Inc (CDMO)

[jakedogman1]

A reverse split means nothing if the right forces are working... that is if more demand for company after R/S, market cap (the real measure of value) should go up. It's how they do a R/S that I'm concerned about. If they are trying to shake out retail and help the big player buying, they are doing a good job of creating doubt and they certainly are not promoting share price.

The big problem with the way they structured the potential R/S is that they did not reduce the number of AS relative to R/S. And with the dilution happy BOD, it sends a bad message.

If they announced a R/S with positive news related to IP, Avid or trials/partner and new members of the BOD to show that it's safe to invest (we have competent leadership now) with the statement that the R/S makes the company more institutionally attractive, the MC probably goes up.

If the announce a R/S with the statement that the R/S makes the company more institutionally attractive without fixing the reason why institutions are avoiding the company, the R/S does nothing to MC and probably hurts MC.