Investigation announced for Investors who lost money with shares of Avid Bioservices, Inc. (NASDAQ: CDMO)

An investigation was announced over potential securities laws violations by Avid Bioservices, Inc. in connection with certain financial statements.

Investors who purchased shares of Avid Bioservices, Inc. (NASDAQ: CDMO), have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

The investigation by a law firm focuses on whether a series of statements by Avid Bioservices, Inc. regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

Tustin, CA based Avid Bioservices, Inc., a contract development and manufacturing organization, provides process development and current good manufacturing practices (CGMP) clinical and commercial manufacturing services of biologics for the biotechnology and biopharmaceutical industries.

On March 6, 2024, Avid Bioservices, Inc submitted a current report on Form 8-K to the Securities and Exchange Commission (SEC) regarding the receipt of an acceleration notice from a holder of its 1.250% Exchangeable Senior Notes due 2026. The Acceleration Notice outlined several key points, including the Company's failure to remove the restrictive legend on the 2026 Notes by the required date of March 17, 2022 as per the terms of the 2026 Notes Indenture. This failure resulted in the accrual of Additional Interest at a rate of 0.50% per annum, which remains unpaid and constitutes an Event of Default under the 2026 Notes Indenture.
Furthermore, the holder, who is the beneficial owner of at least 25% of the outstanding 2026 Notes, exercised their right to accelerate all of the 2026 Notes. Consequently, 100% of the principal, accrued interest, and unpaid interest on the 2026 Notes became immediately due and payable as of February 29, 2024, amounting to approximately $146.0 million with an interest rate of 2.75% per annum until the full amount is settled.
In light of these developments, Avid Bioservices, Inc disclosed that there may be delays in filing its Quarterly Report on Form 10-Q for the fiscal quarter ended January 31, 2024, particularly if financial restatements are deemed necessary. Following this announcement, the market responded with a significant decline in the price of Avid Bioservices, Inc stock.

Shares of Avid Bioservices, Inc. (NASDAQ: CDMO) declined to $5.90 per share on March 07, 2024.

Those who purchased shares of Avid Bioservices, Inc. (NASDAQ: CDMO) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.