Avid Bioservices Inc (CDMO)

[InternetForumUser]

PPHM Management/BOD = Reason for REVERSE SPLIT

On June 7, 2017, NASDAQ responded that Peregrine Pharmaceuticals had until July 21, 2017 to become NASDAQ Compliant.

Between February 1 through March 10, 2017, the company sold 15,308,300 and 11,273,296 shares for an average of $0.479/share and $0.533/share respectively. The total shares sold through the ATM accounted for 9.8% of the Total OS at the time. During this time, the NASDAQ Compliance date was April 10, 2017. So pretty much within 20 days of when the PPS had to be over $1/share, the company sold around 10% of the company at sub-$1/share.

On June 7, 2017, PPHM was granted an extension till July 21, 2017; however, between May 1 through June 30, 2017, the company sold another 7,358,806 shares at around $0.584/share.

So can anyone explain why a company would sell more than 10% of the company using the ATM, if there was ANY CHANCE that they were going to get the PPS over $1/share? Was Management being dishonest and outright lying to the shareholders? Or were they just plain stupid?

Personally, I believe Peregrine Management were being dishonest about their true intentions and always wanted the REVERSE-SPLIT.

So how could anyone want the current Team in place, no matter how bad the second option is?

**All Shares are pre-reverse Split.