SEC Filing | Avid Bioservices, Inc.

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SEC FORM 3 SEC Form 3

FORM 3

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person^*

Richieri Richard A.

(Last)

(First)

(Middle)

14191 MYFORD ROAD

(Street)

TUSTIN

92780

(City)

(State)

(Zip)

2. Date of Event Requiring Statement (Month/Day/Year)
04/26/2023

3. Issuer Name and Ticker or Trading Symbol
Avid Bioservices, Inc. [ CDMO ]

4. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

	Director	10% Owner
X	Officer (give title below)	Other (specify below)
Chief Operations Officer

5. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Beneficially Owned
1. Title of Security (Instr. 4)	2. Amount of Securities Beneficially Owned (Instr. 4)	3. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	4. Nature of Indirect Beneficial Ownership (Instr. 5)
Common Stock, $0.001 par value	12,122	D
Common Stock, $0.001 par value	5,905	I	By Spouse

Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 4)	2. Date Exercisable and Expiration Date (Month/Day/Year)		3. Title and Amount of Securities Underlying Derivative Security (Instr. 4)		4. Conversion or Exercise Price of Derivative Security	5. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	6. Nature of Indirect Beneficial Ownership (Instr. 5)
1. Title of Derivative Security (Instr. 4)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares	4. Conversion or Exercise Price of Derivative Security	5. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	6. Nature of Indirect Beneficial Ownership (Instr. 5)
Stock Option (right to buy)	⁽¹⁾	10/09/2026	Common Stock	56,250	5.3	D
Stock Option (right to buy)	⁽²⁾	07/10/2027	Common Stock	48,498	6.95	D
Restricted Stock Units	⁽³⁾	⁽³⁾	Common Stock	8,093	⁽⁴⁾	D
Restricted Stock Units	⁽⁵⁾	⁽⁵⁾	Common Stock	4,560	⁽⁴⁾	D
Restricted Stock Units	⁽⁶⁾	⁽⁶⁾	Common Stock	12,294	⁽⁴⁾	D
Performance Stock Units	⁽⁷⁾	⁽⁷⁾	Common Stock	10,809	⁽⁸⁾	D
Performance Stock Units	⁽⁹⁾	⁽⁹⁾	Common Stock	30,261	⁽⁸⁾	D
Stock Option (right to buy)	⁽¹⁰⁾	12/14/2025	Common Stock	1,650	5.22	I	By Spouse
Stock Option (right to buy)	⁽¹¹⁾	07/10/2026	Common Stock	1,430	6.07	I	By Spouse
Stock Option (right to buy)	⁽²⁾	07/10/2027	Common Stock	2,000	6.95	I	By Spouse
Restricted Stock Units	⁽¹²⁾	⁽¹²⁾	Common Stock	154	⁽⁴⁾	I	By Spouse
Restricted Stock Units	⁽³⁾	⁽³⁾	Common Stock	270	⁽⁴⁾	I	By Spouse
Restricted Stock Units	⁽⁵⁾	⁽⁵⁾	Common Stock	360	⁽⁴⁾	I	By Spouse
Restricted Stock Units	⁽⁶⁾	⁽⁶⁾	Common Stock	1,079	⁽⁴⁾	I	By Spouse

Explanation of Responses:

1. The stock option granted on October 9, 2019, vests in four (4) equal annual installments beginning October 9, 2020 and each year thereafter until fully-vested.

2. The stock option granted on July 10, 2020, vests in four (4) equal annual installments beginning July 10, 2021 and each year thereafter until fully-vested.

3. The restricted stock units ("RSU") granted on July 10, 2020, vest in four (4) equal annual installments beginning July 10, 2021 and each year thereafter until fully-vested.

4. Each RSU represents the contingent right to receive, upon vesting, one share of the Issuer's Common Stock.

5. The RSUs granted on July 9, 2021, vest in sixteen (16) equal quarterly installments over a four (4) year period beginning October 9, 2021 and each quarter thereafter until fully-vested.

6. The RSUs granted on July 9, 2022, vest in sixteen (16) equal quarterly installments over a four (4) year period beginning October 9, 2022 and each quarter thereafter until fully-vested.

7. The performance stock units ("PSU") granted on July 9, 2021, is subject to the Issuer achieving certain fiscal year revenue and adjusted net profit milestones, weighted 60% and 40%, respectively, over three (3) fiscal year performance periods beginning with the Issuer's fiscal year ending April 30, 2022 and continuing through the fiscal year ending April 30, 2024 (each a "Performance Period"). Subject to the Issuer attaining the applicable fiscal year milestones, 1/3rd of the PSUs will vest on the last day of each fiscal year during the Performance Period. The number of PSUs listed is based on a maximum 200% achievement of each milestone during each remaining Performance Period (the "Maximum Performance Target"). In the event that a milestone is achieved at a rate below the Maximum Performance Target, or is not achieved, the corresponding portion of the PSUs that do not vest will be forfeited.

8. Each PSU represents the contingent right to receive, upon vesting, one share of the Issuer's Common Stock.

9. The PSUs granted on July 9, 2022, is subject to the Issuer achieving certain fiscal year revenue and adjusted net profit milestones, each weighted 50%, over three (3) fiscal year performance periods beginning with the Issuer's fiscal year ending April 30, 2023 and continuing through the fiscal year ending April 30, 2025 (each a "Performance Period"). Subject to the Issuer attaining the applicable fiscal year milestones, 1/3rd of the PSUs will vest on the last day of each fiscal year during the Performance Period. The number of PSUs listed is based on a maximum 200% achievement of each milestone during each Performance Period (the "Maximum Performance Target"). In the event that a milestone is achieved at a rate below the Maximum Performance Target, or is not achieved, the corresponding portion of the PSUs that do not vest will be forfeited.

10. The stock option is fully-vested.

11. The stock option granted on July 10, 2019, vests in four (4) equal annual installments beginning July 10, 2020 and each year thereafter until fully-vested.

12. The RSUs granted on July 10, 2019, vests in four (4) equal annual installments beginning July 10, 2020 and each year thereafter until fully-vested.

	/s/ Stephen Hedberg, by Power of Attorney for Richard A. Richieri	05/05/2023
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 5 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
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Exhibit 24

SECTION 16

POWER OF ATTORNEY

The undersigned hereby constitutes and appoints Daniel R. Hart or Stephen Hedberg, or any of them signing singly, with full power of substitution and resubstitution, as the undersigned’s true and lawful attorney in fact to:

	1.	execute Forms 3, 4 and 5 in accordance with the Act and the rules and regulations thereunder for and on behalf of the undersigned, in the undersigned’s capacity as a Section 16 reporting person of Avid Bioservices, Inc. (the “Company”),

	2.	do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute any such Form 3, 4, or 5, complete and execute any amendment or amendments thereto, and timely file such form with the SEC and any stock exchange or similar authority, and

	3.	take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney in fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney in fact on behalf of the undersigned pursuant to this Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney in fact may approve in such attorney in fact’s discretion.

The undersigned hereby grants to each such attorney in fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution and resubstitution or revocation, hereby ratifying and confirming all that such attorney in fact, or such attorney in fact’s substitute or substitutes, shall lawfully do or cause to be done by virtue of this Power of Attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorneys in fact, in serving in such capacity at the request of the undersigned, are not assuming, nor is the Company assuming, any of the undersigned’s responsibilities to comply with Section 16 of the Act.

This Power of Attorney shall remain in full force and effect until the undersigned is no longer required to file Forms 3, 4, and 5 with respect to the undersigned’s holdings of and transactions in securities issued by the Company, unless earlier revoked by the undersigned in a signed writing delivered to the foregoing attorneys in fact.

IN WITNESS WHEREOF, the undersigned has caused this Power of Attorney to be executed as of this 17th day of April, 2023.

/s/ Richard A. Richieri

Richard A. Richieri