Avid Bioservices Inc (CDMO)

[jakedogman1]

As I said earlier, this has been a game of transferring ownership from shareholders to mgmt. In most all other cases, the mgmt starts off with owning the company and slowly dilutes it as capital is raised and at the end of the day, mgmt still owns a significant amount or they have gotten rich selling along the way. In pphm's case, mgmt owned virtually nothing (when sk and crew took over a faltering company) and found the shareholders have some very valuable assets (bavi and other mabs) of which mgmt owned nothing. So mgmt has slow played progress in share price and actually crushed it on several occasions and granted themselves significant ownership stakes via options. And they have entrenched themselves with a team that has zero biotech experience but allows them to continue transferring ownership.

The failure to get the going concern issue is exhibit A. Removing that hurdle would have allowed many institutions to jump in but that would have caused the share price to go up which hurts mgmt.

Right now mgmt is in the process of giving themselves 8.5 mil shares or 13% more of the company. Every dollar increase in share price costs mgmt $8.5 mil. So a $4 swing costs mgmt $34 mil. Divide that amongst the chosen few and you can see why the games are played. In the meantime they are content to sell shares for pennies on the dollar to keep the lights on. But it is not their money and they have 250 mil more shares to play with.

I'm just hoping that once dartman gets his fill, he puts a new team in place. Love to see the slimeballs get booted at the goal line.