Avid Bioservices Inc (CDMO)

[MazelMan]

A bit more text.


According to the final text of NASD Rule 2711 (f)(5): “If a member intends to terminate its research coverage of a subject company, notice of this termination must be made. The member must make available a final research report on the subject company using the means of dissemination equivalent to those it ordinarily uses to provide the customer with its research reports on the subject company. The report must be comparable in scope and detail to prior research reports and must include a final recommendation or rating, unless it is impracticable for the member to produce a comparable report (e.g., if the research analyst covering the subject company or sector has left the member or if the member terminates coverage of the industry or sector). If it is impracticable to produce a final recommendation or rating, the final research report must disclose the member’s rationale for the decision to terminate coverage.”
The provision requests that a termination notice must be “comparable in scope and detail to prior research reports” and must include a final rating. It is interesting to note that in the original text proposed by the NASD, the termination notice was required to be comparable to the report that initiated coverage. Now, in its final text, the provision requires the notice that terminates coverage of a firm to be as comprehensive as other reports previously issued on that firm by the analyst.