Avid Bioservices Inc (CDMO)

[Bungler]

You stated it correctly but your conclusion is off. If you now own 1000 common shares, you can buy 5 preferred shares for $55,000, or $55 per common share.

Also, note the following from the document you cited:

In the event that any person or group of affiliated or associated persons becomes an Acquiring Person, each holder of a Right, other than Rights beneficially owned by the Acquiring Person (which will thereupon become void), will thereafter have the right to receive upon exercise of a Right that number of shares of Common Stock having a market value of two times the exercise price of the Right.