The announcement of a significant capital raise through convertible notes is generally seen as a positive development for a company, indicating plans for growth or debt restructuring. However, the impact on the stock price can vary depending on investor perception of the company's future prospects and the terms of the convertible notes. In this case, the relatively high interest rate (7%) could indicate a higher risk perceived by investors, but the successful closing of such a deal would provide Avid Bioservices with substantial capital for its operations or growth initiatives.