Avid Bioservices Inc (CDMO)

[jbainseky]

Bungler,

I don't think you have the $11/$55 dollar part correct in your first bold section. If I owned 5000 shares pre-reverse-split, then I have 1000 after. That paragraph simply says that I will still have the right to purchase 5000 1/1000 of the preferred shares at $11 each. So I can buy 5 preferred shares for $5500 where as without the paragraph, I could only buy the 1 preferred share for $1100.

On the value to the shareholder, The paragraph is below.

Link to the actual document

http://www.sec.gov/Archives/edgar/data/704562/000101968706000599/peregrine_8k-031706.htm

OH YEA< don't forget the BOD gets 500,000 PREFERRED SHARES!!

Shares of Preferred Stock purchasable upon exercise of the Rights will not be redeemable. Each share of Preferred Stock will be entitled, when, as and if declared, to a minimum preferential quarterly dividend payment of $1.00 per share but will be entitled to an aggregate dividend of 1,000 times the dividend declared per share of Common Stock. In the event of liquidation, dissolution or winding up of PPHM, the holders of the Preferred Stock will be entitled to a minimum preferential payment of $1,000 per share (plus any accrued but unpaid dividends) but will be entitled to an aggregate payment of 1,000 times the payment made per share of Common Stock. Each share of Preferred Stock will have 1,000 votes, voting together with the Common Stock. Finally, in the event of any merger, consolidation or other transaction in which outstanding shares of Common Stock are converted or exchanged, each share of Preferred Stock will be entitled to receive 1,000 times the amount received per share of Common Stock. These rights are protected by customary antidilution provisions.