Avid Bioservices Inc (CDMO)

[djohn]

Convertible notes are debt and we have to pay the note holders pretty soon. we have to come up with the cash or issue more stock.
I read note holders may exchange anytime after September 15,2025 ( a little over 2 years way)
Can we generate $125mil in cash after operations in two years? Not with $145-$165mil of revenue in FY2024. We would have to do $500mil in revenue in next 24 months at 25% margin at minimum to generate that kind of cash. Not with guidance of $191mill in revenue for the next 15 months. So issue more shares resulting in delusion of share value?

https://ir.avidbio.com/news-releases/news-release-details/avid-bioservices-inc-announces-pricing-125-million-offering

The notes will mature on March 15, 2026, unless earlier repurchased, redeemed or exchanged. Before September 15, 2025, noteholders will have the right to exchange their notes only upon the occurrence of certain events. From and after September 15, 2025, noteholders may exchange their notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date of the notes. The notes will be settled in cash, shares of the company’s common stock or a combination of cash and shares of the company’s common stock, at the Issuer’s election.