Avid Bioservices Enters Agreement to Merge with Space Finco, Inc., Parent, and Merger Sub

Avid Bioservices, Inc. (NASDAQ:CDMO) announced on November 6, 2024, that it has entered into a definitive Agreement and Plan of Merger with Space Finco, Inc., Parent, and Merger Sub. As per the agreement, this merger will lead to the incorporation of Merger Sub into Avid Bioservices, with the Company becoming a wholly-owned subsidiary of Parent, formed by affiliates of GHO Capital Partners LLP and Ampersand Capital Partners.

Upon the completion of the merger, each share of Avid Bioservices’ common stock will be converted into the right to receive $12.50 in cash, without interest. Additionally, outstanding options, restricted stock units (RSUs), and performance stock units (PSUs) will be handled as detailed in the Merger Agreement, ensuring a smooth transition for stakeholders.

Concurrently with the merger agreement, equity and debt financing commitments have been secured by Parent and its subsidiaries for the Transactions. Notably, the transaction is subject to customary closing conditions, including the approval of Avid Bioservices’ stockholders and regulatory bodies.

The Merger Agreement includes provisions for termination fees for both parties under specific circumstances, ensuring the protection of interests. Upon the completion of the transaction, Avid Bioservices’ common stock will cease trading on public stock exchanges, but the Company will continue its operations under its current name and brand.

It is crucial to note that this information is not exhaustive and should be considered in conjunction with the full text of the Merger Agreement, available as Exhibit 2.1 of the filing.

This move aligns with Avid Bioservices’ strategic initiatives and is expected to position the company favorably for future growth and development in the biologics contract development and manufacturing sector. The Company intends to provide further updates and information to stakeholders through subsequent filings and disclosures.

For more detailed information, stakeholders are advised to refer to the complete filing by Avid Bioservices on the U.S. Securities and Exchange Commission’s website or the Company’s investor relations webpage.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Avid Bioservices’s 8K filing here.

Avid Bioservices Company Profile

Avid Bioservices, Inc operates as a contract development and manufacturing organization for the biotechnology and biopharmaceutical industries in the United States. It provides process development and current good manufacturing practice clinical and commercial manufacturing services of biologics, including clinical and commercial drug substance manufacturing, bulk packaging, release and stability testing, regulatory submission and support, upstream and downstream development and optimization, analytical methods development, cell line development, testing, and characterization services.