Votes WITHHOLD against board directors Phyllis Gardner and James Bierman at 2022 Annual Meeting to send a message to MiMedx

Demands Management and the Board Show Confidence in MiMedx and Alignment With Shareholders' Interests by PURCHASING SHARES

Will Vote AGAINST Approval of Executive Compensation Following Egregious Share Grants to Management

BATON ROUGE, La., May 31, 2022 /PRNewswire/ -- Prescience Point Capital Management LLC ("Prescience Point"), a research-focused, catalyst-driven investment firm that beneficially owns approximately 6.7% of the outstanding common stock of MiMedx Group, Inc. ("MDXG" or the "Company") (NASDAQ: MDXG), today released a presentation detailing the colossal failures and massive value destruction that have taken place under the Company's current Board of Directors and management. The presentation also documents a misalignment of interests that has given an incentive to management, the Board and EW Healthcare Partners ("EW") to keep MDXG's share price depressed.

MDXG is being run primarily for the benefit of EW Healthcare and Management

The presentation reinforces Prescience Point's decision to WITHHOLD its votes against two members of MDXG's Board – Phyllis Gardner and James Bierman – who are up for election at the Company's annual meeting of shareholders on June 7, 2022, and to vote AGAINST approval of the executive compensation package.

You can view and download the presentation HERE.

Prescience Point continues to believe that MiMedx is a promising biotech company with best-in-class products that improve patients' lives, whose enormous potential is being squandered by the self-serving, negligent and value destructive actions of an inept Board and management.

"MDXG's recent history is one of chronic value destruction caused by the failed strategies and operational missteps of the Board and management.  These missteps notably include the gross mismanagement of the Company's Phase 2b knee OA and Phase 3 plantar fasciitis trials, both of which failed due to the use of expired Amniofix product. This extremely negligent error by the current regime resulted in a 60% decline in MDXG's share price on the date the trial results were announced. Nonetheless, the Board has continued to reward management handsomely with massive and undeserved stock grants, including a recent grant of 603,000 restricted shares to CEO Tim Wright," said Eiad Asbahi, Founder and Managing Partner of Prescience Point.

"Under the current Board's oversight, MDXG has been run primarily for the benefit of two factions – management and EW – who have each received generous amounts of MDXG shares at either zero cost or deeply discounted prices. Public shareholders are the victims of this apparent self-dealing as their ownership is steadily siphoned from their pockets and into those of management and EW," Mr. Asbahi continued.

Prescience Point noted that Board members and management have never bought so much as a single share of MDXG stock with their own money. Instead, management's actions suggest that they may have actually tried to suppress MDXG's share price ahead of receiving share grants from the Company. In support of this view, Prescience Point provided the following timeline of recent events:

  • March 22nd, 2022: Just two weeks prior to being granted 603,000 restricted shares from MDXG, during his presentation at the Canaccord Genuity Musculoskeletal Conference, CEO Tim Wright inexplicably indicated that the total addressable market ("TAM") for knee OA was just $1.3 billion to $1.5 billion, when the actual TAM for knee OA exceeds $50 billion
  • April 8th, 2022: CEO Tim Wright is granted 603,000 restricted shares at an average price of $4.62
  • April 11th, 2022: Three days after receiving his share grant, in an April 11th article published in the Atlanta Journal Constitution, Mr. Wright did a complete 180 and described the knee OA market as being a "huge, huge market" with "at least 240 million patients," implying a massive TAM in excess of $50 billion

"By voting to WITHHOLD votes for two directors who have participated in the destruction of shareholder value – and voting NO on excessive, undeserved executive compensation – Prescience Point is sending a message that continued underperformance, excessive compensation, and self-serving, value-destructive actions of the Board and management will not be tolerated. This will also help set the stage for next year's shareholder meeting, where four Board seats will be up for election," added Mr. Asbahi.   

"We call upon MiMedx's Board and management to purchase shares in the open market to show confidence in the Company and alignment with shareholders' interests," Mr. Asbahi concluded.

Please review the detailed presentation to see the MDXG Board's and management's abysmal, value-destructive record of bungled clinical trials, misguided strategies, outrageous compensation, ineffective investor communications – and learn why Prescience Point has decided to WITHHOLD its vote to send a message to MiMedx.   

Disclaimer

This material 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.  In addition, the discussions and opinions in this press release are for general information only and are not intended to provide investment advice.  All statements contained in this press release that are not clearly historical in nature or that necessarily depend 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.  The 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 the actual results to be materially different.  Certain information included in this material is based on data obtained from sources considered to be reliable.  No representation is made with respect to the accuracy or completeness of such data, and any analyses 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 among alternative methodologies that produce different results.  Accordingly, any analyses should also not be viewed as factual and also should not be relied upon as an accurate prediction of future results. All figures are unaudited estimates and subject to revision without notice. Prescience Point disclaims any obligation to update the information herein and reserves the right to change any of its opinions expressed herein at any time as it deems appropriate. Past performance is not indicative of future results.

About Prescience Point Capital Management

Prescience Point Capital Management is a private investment manager that employs forensic investigative techniques to unearth significant mispricing in global markets. It specializes in extensive investigations of difficult-to-analyze public companies in order to uncover significant elements of the business that have been overlooked or ignored by others.

Prescience Point manages private funds on behalf of its clients and principals and takes positions both long and short in support of its research. Prescience Point invests across a broad set of equities that it believes have abnormally large disparities between what their underlying businesses are intrinsically worth and what their securities sell for. The firm was founded by investor Eiad Asbahi in 2009 and is headquartered in Baton Rouge, LA. Prescience Point Capital Management is a registered investment advisor with the State of Louisiana. Follow @PresciencePoint.

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SOURCE Prescience Point Capital Management

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