Avid Bioservices - CDMO STOCK NEWS

Avid Bioservices has issued a notice to holders of its 7.00% Convertible Senior Notes due 2029 regarding a Fundamental Change and Make-Whole Fundamental Change following its merger completion on February 5, 2025. Key points:

- Noteholders have the right to require Avid to repurchase their notes at 100% of principal value plus accrued interest on March 12, 2025

- During the Make-Whole Fundamental Change Conversion Period (until March 10, 2025), notes can be converted at an increased rate of 113.7656 per $1,000 principal amount

- Conversion will result in cash payment of approximately $1,422.07 per $1,000 principal amount

- Following the merger, each share of Avid common stock was converted to $12.50 in cash

Avid Bioservices has been successfully acquired by GHO Capital Partners and Ampersand Capital Partners in an all-cash transaction valued at approximately $1.1 billion. The deal, which marks GHO's first public-to-private transaction, values Avid shares at $12.50 per share. Following the acquisition, Avid will be delisted from Nasdaq.

As a dedicated biologics Contract Development and Manufacturing Organisation (CDMO), Avid provides development and manufacturing services to biotechnology and pharmaceutical companies. The company has invested significantly in state-of-the-art facilities and expertise in bioprocess optimization, analytical testing, and regulatory compliance.

The new partnership aims to accelerate Avid's growth through expanded offerings, talent investment, and greater geographic reach. GHO brings considerable CDMO sector expertise through its portfolio investments, while Ampersand contributes deep industry knowledge to support Avid's next growth phase.

Avid Bioservices (NASDAQ: CDMO) stockholders have approved the transaction with GHO Capital Partners LLP and Ampersand Capital Partners at a special meeting of stockholders. The company, a dedicated biologics contract development and manufacturing organization, expects the transaction to close within days as all closing conditions have been met and regulatory approvals received, except for those to be satisfied at closing.

Nick Green, president and CEO of Avid Bioservices, expressed gratitude to stockholders for their support during the company's time as a public company and throughout this process. The transaction aims to deliver significant, immediate and certain cash value to stockholders. The final, certified voting results will be filed with the SEC via Form 8-K.

Avid Bioservices (NASDAQ: CDMO) has issued a letter to stockholders urging them to vote in favor of the pending transaction with GHO Capital Partners LLP and Ampersand Capital Partners at the Special Meeting scheduled for January 30, 2025. The transaction offers significant premiums, including a 63.8% premium to comparable companies' trading multiples and a 24.9% premium to the company's closing price of $7.63 on June 4, 2024.

The Board conducted a robust process, involving 24 potential buyers, with seven parties conducting due diligence and two preliminary bids before final negotiations. Leading proxy advisory firms ISS and Glass Lewis have recommended voting FOR the transaction. The deal addresses several challenges, including industry-wide uncertainty, need for additional investments, and updated growth expectations below previous guidance.

Avid Bioservices (NASDAQ: CDMO) has filed an investor presentation regarding its pending transaction with GHO Capital Partners and Ampersand Capital Partners. The deal offers stockholders a significant premium, including a 63.8% premium to the June 4, 2024 closing price. The transaction resulted from a robust process where the Board rejected two initial proposals before conducting a broader search involving 24 potential parties, with seven conducting due diligence.

The deal's value exceeds trading multiples of comparable companies and represents a 24.9% premium to the company's discounted cash flow analysis. The Board highlights that while Avid has made strategic investments, additional funding is needed for growth potential. The company's five-year growth prospects were noted to be below previous guidance and analyst consensus.

A Special Meeting to vote on the transaction is scheduled for January 30, 2025, with stockholders of record as of December 11, 2024, eligible to vote. The Board unanimously recommends voting 'FOR' the transaction.

Avid Bioservices (NASDAQ: CDMO) announced the expiration of the Hart-Scott-Rodino waiting period for its pending acquisition by GHO Capital Partners LLP and Ampersand Capital Partners. This marks a significant milestone toward completing the transaction, which is expected to close in the first quarter of 2025. The deal remains subject to stockholder approval and other customary closing conditions. Nick Green, Avid's president and CEO, emphasized that the transaction will deliver significant, immediate, and certain value to stockholders, encouraging them to vote in favor of the deal. Moelis & Company serves as exclusive financial advisor, with Cooley LLP as legal counsel to Avid.

Avid Bioservices (NASDAQ: CDMO) has initiated mailing definitive proxy materials to stockholders regarding its pending transaction with GHO Capital Partners and Ampersand Capital Partners. The deal offers $12.50 per share in cash, representing a $1.1 billion enterprise value and a 13.8% premium to the last trading price before announcement.

The Special Meeting to vote on the transaction is scheduled for January 30, 2025. The Board unanimously recommends stockholders vote 'FOR' the transaction, highlighting three key benefits: immediate cash value, a robust value-maximizing process, and de-risking of the company's standalone future. The deal followed a comprehensive process involving outreach to 24 potential buyers, resulting in a 19% price improvement from the initial unsolicited offer.

Avid Bioservices (NASDAQ: CDMO) reported financial results for Q2 FY2025 ended October 31, 2024. Revenue increased 32% to $33.5 million, while backlog grew 11% to $220 million. Despite revenue growth, the company recorded a gross loss of $2.0 million and a net loss of $17.4 million ($0.27 per share).

The company announced its acquisition by GHO Capital Partners and Ampersand Capital Partners in an all-cash transaction valued at $1.1 billion. Shareholders will receive $12.50 per share, representing a 13.8% premium to the closing price on November 6, 2024. The transaction is expected to close in Q1 2025, after which Avid will become private.

Avid Bioservices (NASDAQ: CDMO) has announced a definitive merger agreement to be acquired by GHO Capital Partners and Ampersand Capital Partners in an all-cash transaction valued at $1.1 billion. Shareholders will receive $12.50 per share, representing a 13.8% premium to Avid's closing price on November 6, 2024. The transaction equates to a 6.3x multiple to consensus FY2025E revenue. The deal, unanimously approved by Avid's Board, is expected to close in Q1 2025, subject to stockholder and regulatory approvals. Post-acquisition, Avid will become private while maintaining its name and brand.