Avid Bioservices Inc (CDMO)

[biopharm]

Its all about the percentages....

I am going to assume $75M in shares is headed to a BP

if purchased at the low end $1.50 ... about 50M shares... about 30% of the company ...(50M) / (132M+50M)

if purchased at the high end $5.00 ... about 15M shares... about 10% of the company ... (15M) / (132M+15M)

Thats the rough estimates... but I don't see these a deal for much less than 1.50 and not more than 5...and I don't see a BP being happy with just 10% ownership of the company


$1.50 is where the BP would buy in... rather than the $5 range and we just so happened to drop from $5 to $1 level as it is seeming to all play itself out

The drop in price and internal investigation was not right....and thats where much of the anger surely originates from with many investors but that is why the risk/reward in this field is just that... risky

just so happens the risk/reward just became stock option rewards for the employees....

just so happens the price is right for a BP to accumulate about 30% of the company but that would need to happen within the 1st couple weeks of the new year since I don't foresee this stock staying below $1.50 for much longer

Happy New Year to all and getting ready for some snow shoveling in the morning... maybe next year I can afford to hire a plow truck!