Avid Bioservices Inc (CDMO)

[Protector]

geocappy, the answer is this:

For now there are 3 candidates on the RONIN RED CARD but that will become 4 after the last extra nomination and could even become more. However, RONIN doesn't give us shareholders the liberty to pick among his candidates or put them in DIRECT competition on the combined card with PPHM.

They decided IN OUR PLACE that it is TAKE ALL on the RED card or NON. Thereby, if they can convince someone to vote for them ALL their candidates get that vote. So a Zrrabian supporter would automatically have to support Scanlan and the others and vice versa.

So as an example say the RED card gets 1000 vote, hence 4 (probably 6) RONIN candidates with 1000 votes. We will assume that since PPHM goes to 7 BoD memebers RONIN will have 6 and not 4 candidates on his RED card. On the RED card you cannot pick your candidates it is ALL or NOTHING. So all 6 candidates will get all votes of RONIN & Cie at least. Let say 8.9%=8900 votes.

The situation of the RED card before the rest (the public) votes would then be:

R1: 8900
R2: 8900
R3: 8900
R4: 8900
R5: 8900
R6: 8900

Now PPHM brings out its white card. They have announce that they would increase the BoD from 4 to 7 and already named Dr. LIAS as #5. 2 more candidates are being search for by a specialise 3rd party firm (see filings).

So on that WHITE CARD we will have CJ, DP, ES and CEO King and Dr LIAS + 2 others, lets call them P6 and P7 and we assume they are not family, not JB-grade candidates but just, as is Dr LIAS, people from the industry.
Just for some people on here: IF THEY ARE NOT and they are the nephew of ES & cie then we can still change our strategy. We need not to know who these P6 and P7 will be if for this explanation we say/assume that they are ACCEPTABLE BoD members for the shareholders.

On the WHITE CARD you are given the liberty to select your team. You can vote for a single up to 7 candidates.

Just as RONIN will support his candidates ES & Cie will support themselves. Question is will they ALSO give every candidates a vote or will ES & Cie (which includes ES large position compared to LIAS, P6 and P7 who will probably, just like the RONIN candidates not have vote of their own) also get ES's votes. ES has about 1% hence 100 votes in our example.

Here we need to SPECULATE but lets take the WORSE CASE SCENARIO for people that want ES? DP and CJ gone of the BoD. In that scenarios ES unbalance the vote AT LEAST in favour of ES? DP and CJ and probably (not sure CEO King because KING has traditionally the most votes anyway).



The situation of the RED card before the rest (the public) votes would then be:

PES 100
PCJ 100
PDP 100
PKI 100 (?)
PLI 0
P6 0
P7 0

If the public would not be voting it means we would have a 6 RONIN + CEO King. SO ES might well vote 75 for DP, CJ, 100 for himself and 0 for King and the others and that would keep HIM on the BoD.

But the reality is that we retailers, the IIs and the Funds, which I'll call 'the public" are allowed to vote.

RETAIL, II, FUNDS VOTING SCENARIOS

A) A RONIN Majority
In this scenario the public massively supports RONIN at a point where their number of votes are higher then the BEST candidate on the PPHM white card. BoD: R1,R2,R3,R4,R5,R6,(PKI or PES in ES's hands).

B) A PPHM Majority
In this scenario the public massively supports PPHMat a point where the number of votes of their WORST candidate are higher then the number of RONIN votes. BoD: PES, PCJ, PDP, PKI, PLI, P6, P7.

C) A MIXED vote.
In a mixed vote there are several possibilities because the candidates with the MOST votes are elected. So if at least TWO (or more) PPHM candidates have MORE votes then the RONIN card then RONIN will have to select x candidates, where x is 7-PPHM candidates that did better.

This simplifies things for the scenario because to keep RONIN from a 100% control of PPHM we need 4 PPHM candidates elected. There is NO WAY we can guarantee that because it all depends on how many votes RONIN will have. However what we CAN DO is making sure that WE CONTROL which PPHM candidates will NOT be on the BoD while in the process increasing the chances that PPHM will have a 4 member majority on the BoD.

That is the PPHM WHITE CARD unbalancing strategy in which we DO NOT vote for ES, DP and CJ, but DO VOTE for the 4 others and as such COMPENSATE for the 100 votes (in our example) head start ES, CJ and DP have, but ALSO give RONIN a chance to BEAT ES, CJ and DP but not increasing their votes over RONIN votes and AT THE SAME TIME help the 4 other PPHM candidates to have a BETTER score then RONIN to keep a PPHM (Avid + PS targeting friendly) BoD and watch during one year what RONIN is going to do, before possibly, extend their power the year after if they do NOT make hostile moves again but purely on the MERITS if candidates that we will have seen at work.

GRAPHICALLY

 
 Votes scale 
 PPHM ES, CJ, DP: |-----| 
 PPHM other 4   : |------------------------------| 
 RONIN all 6    :       |------------------------| 
 

As you can see, with the unbalancing strategy we give RONIN a decent window of getting in and delivering 3 of their 6 candidates to the BoD

Remember: I used Ronin 6 and PPHM 7 because that will be the end game but this complete explanations works PERFECTLY for the current PPHM 5 and RONIN 4 would there not be any additional candidates.

As for those that want some RONIN in the BoD but fear that unbalancing the vote WOULD keep RONIN out, remember that RONIN starts with a 8.9%-1%=7.9% head start on CJ, DP and ES. So if we CONSISTENTLY unbalance the PPHM WHITE CARD vote then CJ, DP and ES that depend on OUR VOTES to catch up that 7.9% PLUS all votes that RONIN has from other parties will not be able to make it. That is of course unless someone would claim that ES, CJ and DP have so much voting support they would but then again if they do it means there is a majority that want them IN. That is democracy if guess?

CONCLUSION
Scenario C gives us a MIXED BoD with PPHM 4 majority and RONIN 3 minority but with in common that they ALL want to extend Avid and they ALL want to monetise PS Targeting but in a different way (PPHM's Partnering with solid revenue and steering 3rd party research and trials vs RONIN's monetising what is there and stooping PS-Targeting R&D totally and immediately).

I believe in PS Targeting so for me C is the best option.

As for:

So now Ronin has 4 on a potential BOD of 7. If Ronin has the votes and just needs retail votes, why wouldn't voting straight Ronin card get us 4 Ronin candidates vs. 3 Current BOD regardless of who they are?

Because if PPHM increases the BoD to 7 then RONIN will increase their candidates to 6. When PPHM went from 4 to 5 with LIAS, RONIN went from 3 to 4.

And those that said RONIN isn't a trader...well RONIN doesn't agree with you:

John S. Stafford, III is the president, chief executive officer and manager of Ronin Trading, LLC, a Delaware limited liability company, with its principal place of business located at 350 N. Orleans Street, Suite 2N, Chicago, IL 60654. Ronin Trading, LLC is engaged in the business of proprietary TRADING.

Roger Farley is a trader and equity member

Stephen White is the manager of SW Investment Management LLC

Brian W. Scanlan is Managing Partner of Freedom Bioscience Partners, LLC, Freedom works as a key partner to business owners, executive management, and private equity to help revitalize revenues, and to assist in M&A transactions.

Saiid Zarrabian is an advisor to Redline Capital Partners, S.A., an entity organized under the laws of Luxembourg. Venture and growth capital backing entrepreneurs

AIMO