Replies to post #234694 on Avid Bioservices Inc (CDMO)

[realist1]

RE "Vote Yes - there isn't a realistic alternative. "

There absolutely is.
Fact is with current cash and remaining (recently filed) ATM's still within current authorized, PPHM has around 2 years of cash burn.

They can request another vote at any time for a fee that's small relative to what they burn.

That 2 years of cash burn allows them to prove to shareholders they can actually do something to create shareholder value rather than destroy it as they have done for so many years.

Voting for proposal # 3 insures shareholders have given up any power they had to force management accountability.

The choice is obvious. Voting no risks nothing, and voting yes says kick shareholders in the face some more. Voting yes is like saying "please continue diluting me into oblivion, and I don't care if the stock keeps going down"

[realist1]

"As of August 14, 2015, the total shares of common stock issued and outstanding and reserved for future issuance equaled 274,483,334 as follows:

· 201,377,358 shares of common stock issued and outstanding;
· 24,721,484 shares of common stock reserved for issuance under outstanding option grants and available for issuance under our stock incentive plans;
· 2,443,056 shares of common stock reserved for and available for issuance under our Employee Stock Purchase Plan;
· 273,280 shares of common stock issuable upon exercise of outstanding warrants; and
· 45,668,156 shares of common stock issuable upon conversion of our outstanding Series E Preferred Stock (1) .
_____________
(1) The Series E Preferred Stock is convertible into a number of shares of common stock determined by dividing the liquidation preference of $25.00 per share by the conversion price, currently $3.00 per share. If all outstanding Series E Preferred Stock were converted at the $3.00 per share conversion price, the holders of Series E Preferred Stock would receive an aggregate of 13,123,033 shares of our common stock. However, we have reserved the maximum number of shares of our common stock that could be issued upon a change of control event assuming our shares of common stock are acquired for consideration of $0.855 per share or less. In this scenario, each outstanding share of Series E Preferred Stock could be converted into a maximum of 29 shares of common stock, as further described in the Certificate of Designations, filed as Exhibit 3.11 to the Company’s Form 8-A filed with the SEC on February 12, 2014."

http://secfilings.nasdaq.com/filingFrameset.asp?FileName=0001019687-15-003306%2Etxt&FilePath=%5C2015%5C08%5C28%5C&CoName=PEREGRINE+PHARMACEUTICALS+INC&FormType=DEF+14A&RcvdDate=8%2F28%2F2015&pdf=

So that may be an artificially high number since it's got the worst case scenario of the preferred being converted at $.855 per share built into the ~274 million.

If it converts at $3.00 per share, the total is more like 241,938,211.