Avid Bioservices Inc (CDMO)

[eastcoastguy]

Well reasoned anti-ATM position RRdog. ATM should only be used by those companies that have no other way to finance. As you have shown dilution is very expensive in the end. Probably one of the reasons management keeps lathering themselves in options. They need more shares to keep up with the dilution. I kept pace with the dilution for awhile but threw in the towel and will win or lose with the shares I own.

Look at the SP after PPHM announced the 30M loan facility in 2012. It signaled to WS that the dilution was over. The SP moved up smartly after that.

The low hanging financing to me is leveraging the value of AVID's revenue. I'm very surprised we haven't at least set up a LOC against AVID. And don't tell me it puts the IP at risk. Its one of the reasons I've hit the pause button on buying more shares. If PPHM is not confident enough to enter into a loan agreement and pay interest (at historically low levels) I wonder why? To sell shares at 1.40 sends the wrong message not only to many of us but to WS where the shorts can play without fear. They know there will always be an abundance of shares to cover with.

I'd like to see a front line Chief Financial Officer brought in. Someone like Greg Shiffman who is soon leaving DNDN.

be well,
eastcoastguy