Avid Bioservices Encourages Active Participation from Stockholders
Avid Bioservices, Inc. (NASDAQ: CDMO), a dedicated biologics contract development and manufacturing organization, is reaching out to its stockholders to urge them to vote in favor of an important transaction with GHO Capital Partners LLP and Ampersand Capital Partners. This initiative aims to enhance the value of their investment significantly.
Key Benefits of the Transaction
The forthcoming vote will take place at a Special Meeting scheduled for January 30, 2025. This meeting is crucial as it will determine the future direction of Avid following this proposed transaction. Stockholders who were on record as of December 11, 2024, are eligible to vote.
Immediate Cash Value for Stockholders
The proposed transaction promises stockholders $12.50 per share in cash, reflecting a substantial premium compared to Avid's previous share prices. This offer provides immediate, certain cash value, making it a compelling option for investors.
Robust Process Leading to Value Maximization
The Board of Directors has conducted a thorough examination and dialogue with various stakeholders to ensure that this transaction maximizes shareholder value. Following an unsolicited bid that valued shares at $10.50, the Board engaged leading industry and financial advisors to explore all potential avenues that align with shareholder interests.
Advantages of Choosing GHO and Ampersand
Through their negotiations, the Board secured a 19% price improvement over the original offer. The decision to move forward with GHO and Ampersand was made after examining several strategic alternatives, ensuring that this transaction best aligns with the long-term goals of the company.
De-risking Avid's Future
This proposed transaction addresses several concerns regarding the standalone future of Avid. The Board evaluated potential macroeconomic challenges that could impede Avid's growth, including industry-wide pressures such as fluctuating biotech funding and increasing competition. The execution risk of continuing as a standalone company could compromise shareholder value; thus, the transaction brings a favorable resolution to these uncertainties.
Call to Action for Stockholders
Avid's Board urges all stockholders to cast their votes in favor of this transaction. Every vote counts and will play a pivotal role in shaping the company's future. Participation options include voting online or by returning the proxy card sent with the proxy materials.
Contact Information for Voting Inquiries
For stockholders needing assistance or clarification regarding the voting process, they can contact MacKenzie Partners, Inc. at their toll-free number or visit the dedicated email for voting inquiries:
Frequently Asked Questions
What is the purpose of the upcoming Special Meeting?
The Special Meeting will allow stockholders to vote on the proposed transaction with GHO Capital Partners and Ampersand Capital Partners.
How much is being offered per share?
The transaction proposes an all-cash offer of $12.50 per share for Avid stockholders.
Who is Avid Bioservices partnering with?
Avid is entering into a transaction with GHO Capital Partners LLP and Ampersand Capital Partners.
What should stockholders do before the meeting?
Stockholders are encouraged to review the materials sent regarding the transaction and to vote in favor of it.
How can stockholders vote?
Stockholders can vote online, by phone, or by signing and returning the proxy card mailed with the definitive proxy materials.
