Avid Bioservices Inc (CDMO)

[jakedogman1]

The mechanics of the warrants is very simple. Given that the warrants were probably granted to the investors whose MO is to make a quick return on investment and not hold stock, the warrant holder shorts (ie sells) the stock at $1.30 (or whatever) and covers the short position with the warrants when exercised. The investor pockets $.30 per share or $405,000 for this transaction. This was probably a decent pop relative to the original financing amount on this deal. Remember we were dealing with pawn shop type players vis a vis the investment banking world.