Alta, Wyoming--(Newsfile Corp. - December 2, 2024) - Cannell Capital LLC issues the following statement:
Cannell Capital LLC ("CC") applauds and endorses the position and letters of Brock Pond Capital Partners and Punch & Associates of November 13 and 14, 2024, respectively, to Avid Bioservices, Inc. ("CDMO") regarding the proposed acquisition of CDMO by GHO Capital Partners LLP and Ampersand Capital Partners. Accordingly, Cannell Capital LLC intends to vote against the transaction as proposed.
It is not the right time to sell. CDMO's backlog builds. The market is expanding. The passing of the BIOSECURE Act is a robust tailwind to CDMO. The economic value of the recently built, but currently largely fallow, capacity is significant. The "premium" afforded to shareholders is inadequate, if not embarrassing.
Cannell Capital LLC awaits publication of the proxy, and particularly the fairness opinion. In the meantime, CC believes that the proposed transaction represents an inequitable transfer of value to the buyer, and, toward that end, CC is sensitized to any unjust conveyance of equity to officers and directors to the detriment of shareholders. We trust that future employment arrangements for members of the management team will be revealed in said proxy.
Perhaps relevant, perhaps not, is the following: (i) that CDMO director Jeanne Thoma also sits on the board of ANI Pharmaceuticals, an Ampersand portfolio company; (ii) that CDMO director Gregory Sargen was the CFO of Cambrex Corporation which bought Avista from Ampersand; and (iii) that former CDMO director Patrick Walsh is a partner at Ampersand. These myriad connections, low premium and questionable timing lend credence to the positions of Brock Pond and Punch.
CONTACT INFORMATION
Stephen C. Wagstaff
1-307-733-2284
scw@cannellcap.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/232027
SOURCE: Cannell Capital LLC
