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Item 5.02
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Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers;
Compensatory Arrangements of Certain Officers.
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On July 17, 2018, Avid
Bioservices, Inc. (the “Company”), announced the appointed of Daniel Hart as the Company’s Chief Financial Officer
effective August 1, 2018. Mr. Hart, age 44, is a highly accomplished financial professional with two decades of experience in senior
level positions with public and private companies spanning such areas as financial stewardship, accounting, and fundraising strategy,
among others. In his role as Chief Financial Officer, he will be responsible for overseeing and managing all of the Company’s
accounting and finance responsibilities.
Mr. Hart most recently
served as Chief Financial Officer of ENO Holdings, Inc., a family of companies focused on the residential real estate market with
offerings spanning brokerage, franchisor, property management, title and escrow services. While with ENO Holdings, he helped optimize
the group’s accounting and finance department with a focus on establishing repeatable processes in the areas of financial
statements, operating plans, cash forecasts and organization budgets. Prior to that position, Mr. Hart served as Senior Vice President,
Chief Financial Officer and Assistant Secretary at SM&A, a $100 million private equity owned management consulting firm that
was previously a Nasdaq-listed company. During his time at SM&A, which included several financial leadership positions of increasing
responsibility, he was responsible for overseeing financial stewardship and played a central role in various financial transactions
and corporate acquisitions. Mr. Hart also previously served as Corporate Controller for Biolase Technology, Inc., a Nasdaq-listed
medical device manufacturer, helping the company complete a $52 million secondary offering and multiple corporate acquisitions.
He earned a Bachelor of Science degree in accounting from California Polytechnic State University, San Luis Obispo.
There are no family
relationships between Mr. Hart and any director or executive officer of the Company. Mr. Hart has not has engaged in any related
person transaction (as defined in Item 404(a) of Regulation S-K) with the Company.
Pursuant to his offer
letter, Mr. Hart’s initial base salary is $385,000 per annum. Mr. Hart is also eligible to participate in the annual discretionary
bonus plan for executive officers, with a target bonus percentage of up to forty-five percent (45%) of his annual base salary (prorated
for the current fiscal year ending April 30, 2019). The Company has agreed that one-half of Mr. Hart’s fiscal year 2019 target
bonus will be guaranteed. In addition, effective on his start date of August 1, 2018, Mr. Hart will be granted a stock option from
the Company’s existing stock incentive plans to purchase up to an aggregate of 107,000 shares of the Company’s common
stock at an exercise price equal to the closing price of the Company’s common stock on August 1, 2018. The stock option will
vest in equal annual installments over a four (4) year period.
Mr. Hart is eligible
to participate in all benefits plans or arrangements which are currently, or may in the future be, offered by the Company from
time to time to its executive management employees, including accrued paid-time-off covering vacation and sick time benefits.
The Company and Mr.
Hart intend to enter into a formal employment agreement providing for the above, as well as terms and conditions as are customary
for other executive officers of the Company.
A copy of the press
release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.