Avid Bioservices Inc (CDMO)

[Protector]

CFH, the poison pill is a 3 elements mechanism.

1) There is NEVER any poison pill triggering (automatically) or otherwise) based on BUYING shares. It is ALWAYS WITHOUT ANY EXCEPTION related to a VOTE.

2) Even if the poison pill parameters are satisfied it doesn't trigger. E.g. total % # shares by one party or group acting together is such a parameter.

3) However, IF the parameters are satisfied then the BOD MAY (does not have to) trigger the poison pill.

That (#3) is why you need a BoD of which you are sure it will not be sympathetic to a breadcrumb hostile acquisition so that you can be sure they DO trigger the poison pill.