Core Points - Avid Bioservices is in the process of a transaction with GHO Capital Partners and Ampersand Capital Partners, which is expected to deliver significant, immediate, and certain cash value to stockholders [1][6] - The transaction has received recommendations from leading independent proxy advisory firms, ISS and Glass Lewis, to vote in favor of the deal [3][6] - Avid's Board of Directors conducted a robust process to maximize stockholder value, including engaging multiple strategic and financial parties [7][6] Company Overview - Avid Bioservices is a dedicated biologics contract development and manufacturing organization (CDMO) that provides high-quality development and manufacturing services to biotechnology and pharmaceutical companies [1][11] - The company has over 30 years of experience in producing biologics and offers a comprehensive range of services, including CGMP clinical and commercial manufacturing [11] Transaction Details - The Special Meeting for stockholders to vote on the transaction is scheduled for January 30, 2025, with eligible stockholders as of December 11, 2024 [2] - The proposed transaction offers a compelling valuation with a significant premium of 63.8% over the company's closing price of $7.63 on June 4, 2024, and a premium of 24.9% compared to the trading multiples of comparable publicly traded companies [4][6] - The transaction is seen as a de-risking move for Avid's future as a standalone company amid industry-wide uncertainties [5][6] Voting and Advisory - The Avid Board of Directors unanimously recommends that stockholders vote "FOR" the proposed transaction [9] - Stockholders are encouraged to vote through various methods, including online, by phone, or by returning the proxy card [8]

Core Viewpoint - Avid Bioservices, Inc. has received recommendations from leading independent proxy advisory firms ISS and Glass Lewis to vote "FOR" the proposed transaction with GHO Capital Partners LLP and Ampersand Capital Partners, indicating a favorable outlook for stockholders [1][2]. Company Overview - Avid Bioservices is a dedicated biologics contract development and manufacturing organization (CDMO) that provides high-quality development and manufacturing services to biotechnology and pharmaceutical companies [1][5]. - The company has over 30 years of experience in producing biologics and offers a comprehensive range of services including CGMP clinical and commercial drug substance manufacturing, bulk packaging, and regulatory submissions support [5]. Transaction Details - The transaction with GHO and Ampersand is viewed as providing a premium value for Avid stockholders, with ISS noting that the sales process was thorough and the cash consideration offers liquidity and certainty of value [2]. - The Avid Board of Directors has unanimously recommended that stockholders vote "FOR" the proposed transaction [3]. Advisory Information - Moelis & Company LLC is serving as the exclusive financial advisor to Avid, while Cooley LLP is providing legal counsel [4].

Core Viewpoint - Avid Bioservices, Inc. is under investigation for potential violations of securities laws, prompting affected investors to reach out to the Schall Law Firm for assistance [1] Group 1 - The investigation is focused on possible securities law violations by Avid Bioservices, which may have implications for the company's financial standing and investor trust [1] - Affected investors are encouraged to contact the Schall Law Firm, indicating a potential class action or legal recourse for those impacted by the situation [1]

Core Viewpoint - The Schall Law Firm is inviting shareholders of Avid Bioservices, Inc. who have experienced losses to participate in an inquiry regarding potential securities fraud [1] Group 1 - The inquiry is focused on allegations of securities fraud involving Avid Bioservices, Inc. [1] - Shareholders who have incurred losses are encouraged to join the investigation [1] - The law firm aims to determine whether Avid Bioservices, Inc. engaged in any fraudulent activities that may have affected shareholder value [1]

Core Points - Avid Bioservices is urging stockholders to vote in favor of a pending transaction with GHO Capital Partners and Ampersand Capital Partners, which is expected to provide significant cash value to stockholders [1][4] - The transaction is set to be voted on during a Special Meeting scheduled for January 30, 2025, with eligible stockholders having been recorded as of December 11, 2024 [2][4] Transaction Details - The proposed transaction offers a 63.8% premium to Avid's closing share price on June 4, 2024, prior to the initial proposal from GHO and Ampersand [4] - The transaction's implied multiples surpass those of comparable publicly traded companies, indicating a strong valuation [4] - Avid's intrinsic value is assessed to be 24.9% higher than the midpoint of its discounted cash flow analysis based on a five-year plan [4] Board's Process - The Avid Board of Directors conducted a thorough process, initially rejecting two proposals from GHO and Ampersand before engaging in further discussions [4] - The Board involved Moelis to manage a competitive process that included outreach to 24 strategic and financial parties, resulting in two preliminary bids [4] Industry Context - The biologics manufacturing industry faces various challenges and opportunities that have been factored into market pricing prior to the sale announcement [4] - Avid has made strategic investments but requires additional funding to fully realize its growth potential [4] - Financial analyses indicate that Avid's growth prospects are below previous guidance and analyst consensus [4] Company Overview - Avid Bioservices specializes in biologics contract development and manufacturing, offering a range of services from process development to commercial manufacturing [6] - The company has over 30 years of experience in producing biologics, supporting both clinical and commercial needs [6]

Core Viewpoint - Avid Bioservices, Inc. is moving forward with a transaction involving GHO Capital Partners and Ampersand Capital Partners, which is expected to provide significant cash value to its stockholders and is set for a vote on January 30, 2025 [1][2][4]. Group 1: Transaction Details - The transaction offers a 63.8% premium to Avid's closing price on June 4, 2024, prior to the initial proposal from GHO and Ampersand [4]. - The implied multiples from the transaction exceed those of comparable publicly traded companies, indicating strong valuation [4]. - Avid's intrinsic value is assessed to have a 24.9% premium based on a discounted cash flow analysis aligned with management's five-year plan [4]. Group 2: Board Process and Recommendations - The Avid Board of Directors unanimously recommends that stockholders vote "FOR" the proposed transaction [3]. - The Board previously rejected two initial proposals from GHO and Ampersand before engaging in further discussions and outreach to other potential buyers [4]. - A competitive process was conducted, involving seven parties under NDA and resulting in two preliminary bids before final negotiations with GHO and Ampersand [4]. Group 3: Company Overview - Avid Bioservices specializes in biologics contract development and manufacturing, providing a range of services including CGMP clinical and commercial manufacturing [6]. - The company has over 30 years of experience in producing biologics and offers services from process development to full manufacturing programs [6].

Core Points - Avid Bioservices is moving closer to completing its acquisition by GHO Capital Partners and Ampersand Capital Partners, which is expected to deliver significant value to stockholders [1][7] - The transaction is anticipated to close in the first quarter of 2025, pending stockholder approval and other customary conditions [8] Company Overview - Avid Bioservices is a dedicated biologics contract development and manufacturing organization (CDMO) that provides high-quality development and manufacturing services to biotechnology and pharmaceutical companies [7][10] - The company has over 30 years of experience in producing biologics and offers a comprehensive range of services, including CGMP clinical and commercial manufacturing, process development, and regulatory submissions support [10] Transaction Details - The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act has expired, allowing the acquisition process to proceed [7] - Moelis & Company LLC is serving as the exclusive financial advisor, while Cooley LLP is providing legal counsel for Avid [9]

Core Viewpoint - Avid Bioservices is on track for acquisition by GHO Capital Partners and Ampersand Capital Partners, pending stockholder approval and customary closing conditions, with the transaction expected to occur in the first quarter of 2025 [1][2]. Company Overview - Avid Bioservices, Inc. (NASDAQ:CDMO) is a dedicated biologics contract development and manufacturing organization (CDMO) focused on providing high-quality development and manufacturing services to biotechnology and pharmaceutical companies [2][11]. - The company has over 30 years of experience in producing biologics and offers a comprehensive range of services, including CGMP clinical and commercial drug substance manufacturing, bulk packaging, and regulatory submissions support [11]. Transaction Details - The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act has expired concerning the acquisition agreement, indicating progress towards the transaction [2]. - Avid's CEO, Nick Green, expressed confidence that the transaction will deliver significant value to stockholders and encouraged them to vote in favor of the acquisition [10]. Proxy Statement and Stockholder Meeting - Avid has filed a proxy statement with the SEC for a special meeting of stockholders to consider the proposed transaction, urging stockholders to read the proxy statement and related documents for important information [11]. - The company has provided access to the preliminary and definitive versions of the proxy statement on its investor relations website and the SEC's website [11].

Files Definitive Proxy Statement and Mails Letter to StockholdersTUSTIN, Calif., Dec. 18, 2024 (GLOBE NEWSWIRE) -- Avid Bioservices, Inc. (NASDAQ: CDMO) (“Avid” or the “Company”), a dedicated biologics contract development and manufacturing organization (“CDMO”) working to improve patient lives by providing high quality development and manufacturing services to biotechnology and pharmaceutical companies, today announced that it has commenced mailing definitive proxy materials and a letter to stockholders in ...

Financial Performance - Revenues for the second fiscal quarter ended October 31, 2024, were $33.5 million, an increase of 32% or $8.1 million compared to the same period in the prior year[119] - Revenues for the six months ended October 31, 2024, were $73.7 million, an increase of approximately $10.5 million, or 17%, compared to $63.1 million for the same period in 2023[142] - Gross loss for the three months ended October 31, 2024, was $2.0 million, improving from a gross loss of $4.7 million in the same period last year[134] - Gross profit for the six months ended October 31, 2024, was $3.7 million, representing a 5% gross margin, compared to a gross loss of $0.6 million (negative 1% gross margin) for the same period in the prior year[143] - Operating loss for the three months ended October 31, 2024, was $12.6 million, compared to an operating loss of $11.2 million in the same period last year[136] - Operating loss for the six months ended October 31, 2024, was $15.1 million, an increase of $1.7 million compared to a loss of $13.4 million in the same period in 2023[146] - Interest expense increased to $3.3 million for the three months ended October 31, 2024, up approximately $2.4 million from the prior year[137] - Interest expense rose to $5.7 million for the six months ended October 31, 2024, compared to $1.7 million for the same period in the prior year, reflecting an increase of approximately $4.1 million[147] - Other income (expense), net, was an expense of $1.5 million for the three months ended October 31, 2024, compared to income of $0.1 million in the same period last year[138] - Other income (expense), net, was an expense of $2.1 million for the six months ended October 31, 2024, compared to income of $0.4 million for the same period in the prior year, a decrease of $2.5 million[148] - The company recorded no income tax benefit for the three months ended October 31, 2024, compared to a tax benefit of $2.4 million in the same prior year period[139] Backlog and Future Revenue - The company ended the quarter with a backlog of approximately $220 million, up from approximately $199 million at the end of the same quarter in fiscal 2024[119] - As of October 31, 2024, the company's backlog was approximately $220 million, an increase from approximately $193 million as of April 30, 2024[171] - The company anticipates a significant portion of its backlog will be recognized as revenue over the next five fiscal quarters, but it is subject to risks such as customer cancellations and supply chain delays[171] Expenses and Costs - Selling, general and administrative (SG&A) expenses increased to $10.6 million, a rise of 61% or $4.0 million compared to the prior year[135] - SG&A expenses increased to $18.8 million for the six months ended October 31, 2024, up $5.9 million, or 46%, from $12.8 million in the prior year[144] Cash and Capital Expenditures - As of October 31, 2024, the company had cash and cash equivalents of $33.4 million, which is expected to be sufficient to fund operations for at least the next 12 months[151] - Net cash provided by operating activities for the six months ended October 31, 2024, was $314,000, a decrease of $5.7 million compared to $6.0 million for the same period in 2023[154] - The company anticipates capital expenditures of approximately $5 million to $7 million during fiscal 2025[164] Merger Agreement - The company entered into a Merger Agreement on November 6, 2024, with Space Finco, Inc., which will result in the company becoming a wholly owned subsidiary[120] - On November 6, 2024, the company entered into a Merger Agreement, which includes customary covenants regarding the conduct of its business prior to the closing of the Merger[165] - The company may terminate the Merger Agreement if the Merger is not consummated by May 6, 2025, with a possible extension to November 6, 2025[167] Accounting Policies and Market Risks - There were no significant changes in the company's critical accounting policies during the six months ended October 31, 2024[168] - The company has made estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses based on historical experience[168] - There were no material changes in the market risks described in the company's Annual Report on Form 10-K during the six months ended October 31, 2024[172] Growth Strategy - The company aims to increase its operating profit margin to best-in-class within the industry as part of its growth strategy[117]