Prescience Point Capital Management asks MiMedx to confirm that the company has received letters of serious concern from other shareholders
Disappointed that the MiMedx board used misinformation and distortions to distract shareholders from the board and management’s own failures
Reiterates intention to withhold votes against directors Phyllis Gardner and James Bierman at the 2022 annual meeting and vote against approving executive compensation
BATON ROUGE, The., May 18, 2022 /PRNewswire/ — Prescience Point Capital Management LLC (“Prescience Point”), a research-based, catalyst-focused investment company, which owns approximately 6.7% of the outstanding common shares of MiMedx Group, Inc. (“MDXG” or the “Company”) (NASDAQ: MDXG), today issued the following statement:
“In recent press releases and letters, MiMedx has misleadingly portrayed Prescience Point as a single disgruntled shareholder. However, from what we understand, several other significant MiMedx shareholders, representing millions of MDXG shares, have sent correspondence to the Company outlining concerns similar to ours.With an important vote pending at the Company’s annual meeting of shareholders on June 7, 2022, we believe it is imperative that shareholders know the truth. As such, we ask the board and management to publicly confirm that they have received letters of concern from other significant shareholders in recent weeks,” declared Eiad AsbahiFounder and managing partner of Prescience Point.
As an example of the apparently widespread discontent within MiMedx’s shareholder base, Prescience Point noted the following comments from an email sent to the Board of Directors by a large, long-time shareholder that was recently made public on an investor information website:
“…However, the final blow to all of this is [CEO] Tim and this “Let ‘Em Eat Cake” board plan to hand out stock like candy. Shareholders are held hostage by the resulting dilution of this ill-gotten compensation.
“Shame also on this Board of Directors for accepting hundreds of thousands of shares and cash each year while shareholders are suffering. You are all failing in your fiduciary responsibility to us – the true owners of MIMEDX who have invested our hard-earned money in this company.
“This leadership and this board of directors are not aligned with the best interests of shareholders and are a classic example of everything that is wrong with corporate governance in today’s world of greed and self-centeredness.”
“Rather than acknowledge the blatant destruction of value caused by the flawed strategies and actions of the board and management, and the totally unwarranted stock awards they granted themselves, the company has engaged in personal attacks on me based on events from more than two decades ago which It is both a distressing weakness of character in a publicly traded health care company and a desperate attempt to deflect the shareholder attention to board and management failings,” Mr. Asbahi said.
Prescience Point reiterated its intent to abstain from voting against two MDXG board members, Phyllis Gardner and James Biermanwho are up for election at the annual meeting of the Corporation, and to vote AGAINST the approval of the executive compensation program.
“We intend to send a message that the repeated failures and shortcomings of MiMedx’s board and management will not be tolerated by shareholders, by voting WITHHOLD against two directors and voting NO on the excessive and undeserved compensation for company executives. We believe that MDXG shareholders should not swallow all of the misleading and self-serving misinformation consistently served up by the board and management, and that it is the responsibility of the board as a trustee to set the record straight,” Mr. Asbahi noted.
This document does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in any state to any person. Further, the discussions and opinions contained in this press release are for general information only and are not intended to provide investment advice. All statements in this press release that are not clearly historical in nature or necessarily dependent on future events are “forward-looking statements”, which are not guarantees of future performance or results, and the words “anticipate “, “believe”, “expect”, “potential”, “could”, “opportunity”, “estimate” and similar expressions are generally intended to identify forward-looking statements. Projected results and statements contained in this press release that are not historical facts are based on current expectations, speak only as of the date of this press release, and involve risks that may cause actual results to materially different. Certain information included in this document is based on data obtained from sources believed to be reliable. No representation is made as to the accuracy or completeness of this data, and any analysis provided to assist the recipient of this presentation in evaluating the matters described herein may be based on subjective assessments and assumptions and may use one of the alternative methodologies that produce different results. Accordingly, any analysis should also not be relied upon as factual, nor should it be considered an accurate prediction of future results. All figures are unverified estimates and subject to revision without notice. Prescience Point disclaims any obligation to update the information contained herein and reserves the right to modify any of its opinions expressed herein at any time as it deems appropriate. Past performance does not represent future results.
About Prescience Point Capital Management
Prescience Point Capital Management is a private investment manager that uses forensic investigative techniques to uncover significant mispricings in global markets. He specializes in in-depth investigations of hard-to-analyze public companies to uncover important elements of the business that have been overlooked or overlooked by others.
Prescience Point manages private funds on behalf of its clients and principals and takes long and short positions in support of its research. Prescience Point invests in a wide range of stocks which it believes have abnormally large mismatches between the intrinsic value of their underlying businesses and the selling price of their securities. The company was founded by the investor Eiad Asbahi in 2009 and is headquartered in Baton Rouge, LA. Prescience Point Capital Management is a registered investment adviser with the state of louisiana. To follow @PresciencePoint.
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SOURCE Prescience Point Capital Management