SAN DIEGO, April 03, 2024 (GLOBE NEWSWIRE) -- Shareholder rights law firm Johnson Fistel, LLP is investigating potential violations of securities laws by Avid Bioservices, Inc. (NASDAQ: CDMO) ("Avid" or "the Company"). We are looking into whether the Company or its executives failed to disclose vital information to investors, leading to losses on their investments. If you have purchased Avid securities and have experienced losses, we encourage you to join our investigation to potentially make claims and recover under federal securities laws.
What if I purchased Avid securities? If you believe that you may have a potential claim against Avid and would like to participate in the investigation or learn more about your legal rights and options, please contact Johnson Fistel, LLP at (619) 814-4471) or click here to join the investigation online. There is no cost or obligation to you.
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What is Johnson Fistel investigating? On March 6, 2024, Avid 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 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 stock.
What if I have relevant nonpublic information? Individuals with nonpublic information about the Company should consider whether to assist our investigation or take advantage of the SEC Whistleblower program. Under the SEC program, whistleblowers who provide original information may, under certain circumstances, receive rewards totaling up to thirty percent of any successful recovery made by the SEC. For more information, contact Jim Baker at (619) 814-4471 or jimb@johnsonfistel.com.
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Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York, Georgia, and Colorado. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. We also extend our services to foreign investors who have purchased on US exchanges. Stay updated with news on stock drops and learn how Johnson Fistel, LLP can help you recover your losses. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com.
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Johnson Fistel, LLP
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James Baker, Investor Relations or Frank J. Johnson, Esq., (619) 814-4471
jimb@johnsonfistel.com or fjohnson@johnsonfistel.com
