Replies to post #178976 on Avid Bioservices Inc (CDMO)

[Frustrated]

Plus they are selling at a discount of $3 instead of the $50 that they are worth!

[biopharm]

True....so I ask why not do all small biotechs do this if they will sell out this easy.....?

....being a bit sarcastic there because I dont think many, if any....other small biotechs could accomplish this. A rather large platform drug is needed ....and Peregreine has it.

10.5% interest.....will hopefully be reduced to 8-9% next time around....

[Protector]

cheynew, in addition to biopharms answer I'd like to add that this way of financing was quite exclusive for a small cap biotech like PPHM.

Well at least that was how K&L Gates method was announced, I do not know if other biotech did it before. It was surely a good escape for the lid on the PPS and frankly I think some parties may have been shocked about this solution.

I don't know if it is used outside biotechnology. What I do know is that because of it we:

1) are not at the goodwill and terms of a banker

2) kept our pipeline and IP and Avid unencombered instead of setting it as collateral in a loan

3) we have NOT time stress on pay-back of capital

4) the 10.5% can easily be carried by PPHM

5) we still have 4.3Milj shares in that lot for a potential 25x4.3 milj Dollar (or 100Milj$ plus)

6) The ATM can be used in emergencies (not if we had a loan)

7) The poison pill remains a usable defence against hostile acquisition (not with a loan because it is based on issuing shares).

8) And finally we our hands and assets free for all kind of negotiations from collaborations, over partnerships over deals with Universities, clinical trials arrangements, etc.

All IMO.