Replies to post #324565 on Avid Bioservices Inc (CDMO)

[NoMoDo]

First, I would always have at least 51%.

Management does not own a majority stake. That makes disposition of their largest asset a potential problem because they 1. did not get a vote on the sale of their main asset and 2. have yet to show how they determined value.

Second, the scenario you described has determined there is a value of $100K *the IP) with a sale price of $59 (the upfront payment). That is where people have angst. The value of the IP cannot be determined except by what someone is now willing to pay.

Really? An MBA that cannot find a way to determine value of an IP asset? Biopharm (albeit the smartest landscaper I have ever read) has on a number of occasions mentioned at least one legitimate way. I believe he specifically named two, but don't hold me to that. He may have alluded to it and I could have inferred what he meant. It doesn't take much to find an acceptable range of values.

I am not saying that $8 mil plus milestone and royalty payments is not a good deal, but in two words "fiduciary duty" requires the company to state how they determined the value of their main asset they just sold. Even then, I believe they breached their fiduciary duty by not bringing the sale of their main asset to a vote.

Personally, I would be pissed if I owned this stock. I would be less pissed if the company simply put out an 8k that adequately explained how they valued the asset they sold.

Case would not be thrown out for the above 2 reasons.