Avid Bioservices Inc (CDMO)

[Jeff4iam4]

Yeah, it is a 8.333 to 1 conversion....you get 8.333 shares of PPHM common stock after conversion for each preferred share. Not as good as what I was hoping for (a 5:1 conversion was max what I was hoping to see), but still a lot more manageable deal than the ATM. The problem with the conversion being too favorable for us stockholders who end up diluted somewhat is that by a lower conversion number it is less likely anybody would want to buy your preferred shares as the commons are pretty inexpensive at the present moment. In the end, this will be good because it brings in more cash that strengthens the company and has a somewhat manageable dilution effect....a heck of a lot better than diluting the company 50% to 70% a year just to keep the doors open. If Bavi is successful as most here believe it will be, none of this will matter much in two years. The most important take away is that we will have the cash flow to complete our Phase 3 trial and possibly start and complete a few Phase 2 trials as well. We are moving forward. I don't like being diluted very much either, but sometimes the medicine tastes awful, but it needs to go down before you can get better.