Avid Bioservices Inc (CDMO)

[Protector]

PPHM Hostile vs non-hostile SEC declarations

The below is from Tappan's last filing (NOV 13th).

Item 10. Certification. By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under § 240.14a-11.

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.
Date: November 13, 2017

This is a quite representative example of how non-hostile parties file. Dart does something alike as do most. RONIN doesn't has this but at the contrary says they are going to contact Management/BoD, employees, shareholders, etc (see Ronin's 13D filings). From RONIN's actions AFTER his first filing we have seen why he did not files as the above example. RONIN wanted to influence control and did so by starting to write letters to shareholders, employees and by issuing PR's with reactions to PPHM filings and PR's. One calls that activism because any normal shareholder would not become intrusive at such point.


For those who wonder what the above RED exception § 240.14a-11 means here is the SEC original text about
§ 240.14a-11. See first left column, some down.

This is about PROPOSING CANDIDATES for the BoD. Companies that filed like Tappan did actually say that they will not influence (try to grab or steer or otherwise control PPHM) but that they reserves themselves the right of the activities under § 240.14a-11. That means they can PROPOSE BoD members. It does NOT include bashing or attacking to current BoD, it is about presenting BoD members for election to the CORE (that includes US retailers) of shareholders but it includes NOT forming groups or becoming part of a group to support hostilities against the current BoD because that would fall under the BOLD part of the above quote that I reuse below:

are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect

Joining RONIN, which has clearly and without ANY DOUBT made public that they want to remove the current BoD to replace it with ANOTHER BoD of their own candidates, would be "as a PARTICIPANT in any transaction having that purpose or effect".

Up to you to make up your mind where Tappan could possibly stand and why Tappan has increased their PPHM position up to 8.5% if it is such a worthless company.

AIMO