Avid Bioservices Inc (CDMO)

[jakedogman1]

The example given was to demonstrate that thru friendly entities and shorting, one can accumulate a large block of shares. There are other factors to consider as well. Also, let me repeat myself. The more shares an acquirer gets on the cheap, the higher price the acquirer can pay at the close.

Another example, all hypothetical of course. Let's say you think a certain technology is worth $2 bill and there are 200 mil shares outstanding which would make the average price of $10 per share (this is not what the market value is , it's where you think ultimate value is). If you acquire 50 million shares at an average cost of $2 per share, what is your average cost if you had to pay $10 for the remaining shares?

It's $8 per share and you saved yourself $400 mil. I'm sure there are a million permutations as well. You could also buy on the open market but that could drive up the price too quickly so having a friendly short help you can save you a ton of money.