Replies to post #104821 on Avid Bioservices Inc (CDMO)

[north40000]

RRdog, I add the following PM I sent to other board posters here:

I sent this pm to another early in November before I got involved for a couple weeks in a "different trial."


>>>How about exploring a grant from the likes of BMGF with a potential equity kicker thrown in---a sum of grant on the order of 15-30 million $$. I talked with PL about this at ASM. The Foundation will undoubtedly need to see on a confidential basis the data on all indications that PPHM has accumulated first. I know personally someone highly placed at BMGF through whom grant money is approved after science types look data over. PL was interested in this idea. It is not a loan. Successful grant portends much good-will to BMGF. This person at BMGF has been knowledgable of PPHM for about 5 years from early emails sent by me. No recent correspondence between us has occurred, so no approach like that outlined by me above has been made.

Bungler knows of above idea. We do not know whether it would be possible.<<<

PL expressed interest in above idea. He has my business card. He knows what position this person holds at BMGF.

As CJG told me in an email, he sees no downside in above idea for financing, but causing it to happen is perhaps another matter.As he put it:

>>>>A dream idea = = I wish somehow it would happen.<<<<

[cheynew]

You would think our attorneys would have advised against structuring a deal dependent upon FDA timelines. Was this the guy who is now our general counsel? Larry Moe and Curly,

[Protector]

I just picked-up the phone and called Lytle and I told him:

"Hey Putz I just bought more shares, thanks for letting me have all the great value of Peregrine for nothing! You must be crazy :)"

Seriously now:

... dilutive financing via ATM in the face of multiple better alternatives.

Such as ??? I don't see any other then a loan given the fact we are waiting for a partnership which should solve this problem ones and for long. And I personally am not in favor of a loan. North's idea of a grand would be nice but that is something we don't control. If it would be possible it's not an overnight thing and involves a lot of 'talks', 'explaining' and 'convincing' as there is no "counter weight" unless we develop a malaria related Bavi-viral - if BAMGates.

I believe in leverage of ATM money, given the fact Peregrine has that potential, rather then having creditors, loan terms and all kinds of restrictions. At this stage of the company strategic ability and flexibility are important and therefore it is now that we will need to have our hands free to do what we need to do, not to get acquired sheep, not to be brought in problems due to sudden loan retractions, not to be forbidden to tank from the ATM if the share price is high because the bankers don't want us too, not make us vulnerable for BPs if any would want to harm us, etc!

I know, we disagree on this topic but I am never the less very interested in hearing your pros/cons of a loan. I am always prepared to change my position under convincing arguments and I know that by all people you have the know-how to make that case.

[ysfalconeer]

They are sitting around at Tustin asking "What's a phone?"

Apologies to Field of Dreams -
What's a crop?
Ray

If you build it he will come
Remember in F.O.D. Ray was sitting by the window
looking out at the winter while everyone else
was warm and partying ....
kinda like PPHM investors waiting ...............
waiting ...... waiting ...... waiting .....

Go the distance

[keep_trying]

RRdog, your frustration with the ATM is well understood, but those multiple alternatives for financing available to PPHM are likely more of the desert mirage than real once you walk up and try to take a drink from the oasis, LOL! Why do I say that?

Consider the recent loans that PPHM engaged. The one a year or two back involved assignment of all the intellectual assets of the company to cover a relative pittance for funding. I believe that loan has been closed and claims against PPHM intellectual property as collateral have been lifted--- just in time for PPHM to start talk of there being serious partnering discussions underway that would need unencumbered intellectual property.

The more recent loan with the two $15 million tranches was definitely better for PPHM, but PPHM had to scramble to pay the money back when it became clear that the third party error left PPHM vulnerable to not having the resources needed to pay back the loan. What would the bank get if PPHM defaulted?

Now consider how PPHM has been issuing shares through the ATM to keep funding going for several years now. If intellectual property had been parsed out to back loans over that period, perhaps PPHM would have had to forfeit maybe 20% of their intellectual property rights each time they went to the trough? The third party error set back and scramble for more borrowed funds could have left PPHM in a position where they had to yield more than half of their intellectual property rights to third parties, who could then leverage that with demand for liquidation to cover loan repayment. Retail share holders like us would perhaps be facing the opportunity to buy cheap shares but those shares would only be mated against a small fraction of the real value of the company.

Is that what you meant when you suggest there were alternatives? Maybe you meant partnering could have been bought cheap a couple years back. The end result would be the same as if the intellectual tech was being called due to delayed FDA approval and delivery of product.

My view is that you are doing Mr. Lyttle a disservice by assigning mirage value to funding alternatives that would have swiped intellectual rights out from under retail share holder ownership. PPHM has issued a lot more shares but I can cost average along with the ATM ratio and preserve a better proportionate standing for post FDA Bavi approval value than if the tech rights had been parsed out for survival funding, leaving a trail in the desert over the last five years.

Best wishes and IMO.
KT