Avid Bioservices Inc (CDMO)

[The Other Guy]

Consider this as summary of events:

NSCLC Phase II trial data was successfully reconfigured and the results judged to be better than originally released. Management then went back to the nearly-locked-in-partner with the results and opted to use the added leverage to negotiate a more beneficial contract, or, better yet, opened it back up to all contestants. Meanwhile, management recognized the timeline to start the bid process from the very beginning and opted to do an ATM to keep the company cash-flow positive. While we complain about the amount of dilution it is causing, the dollar amount was deliberate because Peregrine decides to work with the FDA in parallel while partnership negotiations take place - knowing this could take significant time and resources (thus the new hiring). Management deems the leverage to be even greater if FDA is on the cusp of approving Phase III. The partner-to-be was also interested in partnering for Cotara and meanwhile Cotara gets approved for PIII. Management has opted to keep the Cotara partnership open as further leverage in case the nearly-locked-in-partner ends up the highest bidder - thus the need for the ATM. SK pays back the loan "early" and the default amount knowing the responsible third party vendor will compensate for lost damages.