Avid Bioservices Inc (CDMO)

[peregr]

Getting Support to show this is a lame offer engineered by the Board:
BRIEF-Brock Pond Capital Partners Urges Avid Bioservices To Remain Standalone Public Company Absent Improved Offer

Board of Directors
Attn: Corporate Secretary
Avid Bioservices, Inc.
14191 Myford Road
Tustin, CA 92780

Dear Board of Directors,

My name is Prasad Phatak and I am writing to you in my capacity as Managing Member of Brock Pond Capital Partners LLC ("Brock Pond"), a private investment manager. Through my investment fund and personal interests, I am the owner of ~1 million common shares of Avid Bioservices ("Avid" or the "Company"), more than the entire Board combined. As members of the Board and management are also aware, I have been an owner of Avid continuously since 2017 to varying degrees, first through my prior entity Tappan Street Partners LLC where I was the Company's largest shareholder and more recently through Brock Pond. I have seen numerous CEOs, witnessed the transition to a pure-play contract manufacturing business, recent facility expansions, and unfortunately, a variety of capital market missteps. I believe the Company's own management team would agree that I know Avid's business very well, especially given the duration of my involvement. For that reason, it should be very telling that I am disappointed in the Board's recommendation to accept the transaction proposal, which I believe significantly undervalues the Company. Absent an improved offer by GHO/Ampersand (the "Acquirors") or another buyer, I believe the offer does not compensate shareholders for Avid's significant expected growth in the near and medium-term and I intend to vote against the proposed transaction. Shareholders would be better served by Avid continuing to operate independently, allowing public markets to more appropriately value Avid's increasing cash flow over time. The Company's strong backlog and pipeline of late-stage projects significantly de-risks its growth profile versus other companies.