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.
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.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/prescience-point-capital-management-releases-presentation-detailing-board-and-management-failures-at-mimedx-group-301558193.html
SOURCE Prescience Point Capital Management