Avid Bioservices Inc (CDMO)

[mskatiescarletohara]

Well...TW I also think PPHM realizes they are dealing with a complex mab = Tarvacin. I think it would be in company's best interest to partner sooner than later. In my conversations with management, I've picked up on the fact that there are some big fish at the card table.

There has been lots of chat on the RB board about why PPHM hasn't signed any financing deals. The reason they have not done so is because the terms are just SO rotten. Sure they went to UBS twice, UBS likely had several hedgers lined up and PPHM said no...why? Well, because the terms were bad. Why would PPHM decide to dilute the company now-massively mind you and give out warrants which the hedgers can short against when Tarvacin is not even enrolling....I long agonized over ES's decision to issue PUTS. Trust me no one has given ES more grief than me...and I now understand why he's issuing stock at a discount. After speaking with SK a few weeks ago, I now have an understanding why he is doing such. If you go look at the current PIPE deals that are being implemented for company's who's outstanding float is less than 60 million, you'll see the standard 20% discount and the sweet warrant options. PPHM is still reeling from the awful financing done in 2001. ES, SK and I, you sure do not want to see the company raising 10 million + at 1.00 a share and 1.50 for warrants. There is no need to do such. PPHM can get a better deal by waiting for results. It would crush the PPS for at least a year before Tarvacin results came in if they diluted....if they know BP is at the table and can issue the remaining stock to them at a higher price pending Tarvacin's results in Phase I, I would hold out for it. There is just that much confidence in the drug will perform.

I know there have been financing deals offered to PPHM..and they've been shown the exit door. This company is not going to massively dilute right now. When they dilute it will be for a partner. If they sell, it will be for a good price.

Just go look at the current PIPES that are being closed, and tell me if you think PPHM would benefit from such, I don't think so, because the deals I've seen lately have been ugly.

katie..