MARIETTA, Ga., June 3, 2019 /PRNewswire/ — MiMedx Group, Inc. (OTC PINK: MDXG) (“MiMedx” or the “Company“), an industry leader in advanced wound care and an emerging therapeutic biologics company, today announced that it has filed definitive proxy materials with the U.S. Securities and Exchange Commission (“SEC“) in connection with its upcoming 2018 annual meeting of shareholders (“Annual Meeting“) scheduled to be held on June 17, 2019 at 9:00 a.m.local time, at the Marietta Conference Center (Hilton Atlanta/Marietta) at 500 Powder Springs St., Marietta, GA 30064. Shareholders as of the close of business on May 9, 2019 are entitled to notice of, and to vote at, the Annual Meeting. For more information regarding the Annual Meeting, please visit www.VoteBlueforMiMedx.com.
The Company has nominated to the board of directors of the Company (the “Board“) three experienced healthcare professionals, none of whom has served on the MiMedx Board previously. Two of these candidates were identified by one of the Company’s largest shareholders, Prescience Point Capital Management LLC (together with its affiliates, “Prescience Point“), and the third candidate is our new Chief Executive Officer.
MiMedx’s former Chairman and Chief Executive Officer, Parker H. “Pete” Petit, has nominated himself and two of his hand-picked business associates to be elected to the Board at the Annual Meeting. Mr. Petit has also expressed his desire to gain control of the Board.
In connection with the filing of the definitive proxy statement, the Chairman of the MiMedx Board of Directors mailed a letter to shareholders informing them of what is at stake at the Annual Meeting. Highlights of the letter include:
- In the Company’s view, the return of Mr. Petit to the Board would disrupt the Company and the substantial progress it has made since the allegations regarding certain sales and distribution practices at the Company in early 2018.
- Working with outside counsel and forensic accountants, the Audit Committee of the Board (the “Audit Committee“) conducted its independent investigation into those allegations. The unmistakable conclusion from the independent investigation was that Mr. Petit and certain members of his management team engaged in serious wrongdoing.
- This misconduct has harmed MiMedx and its shareholders—the Company is a defendant in a multitude of lawsuits, faces regulatory inquiries and has had its stock delisted from Nasdaq. The stock price has fallen substantially, and the Company’s market value is down more than $1 billion since February 2018.
- The Board has made important strides toward helping the Company recover from the fallout from the wrongful conduct of Mr. Petit and his prior management team—aside from conducting the Audit Committee investigation, the Board has hired a new Chief Executive Officer and other new senior management team members and the Company has appointed a new auditor.
- In addition, the Board has established a comprehensive plan to refresh the composition of the Board, developed in cooperation with Prescience Point, which owns more than 6.8% of the outstanding shares of MiMedx common stock.
- MiMedx’s nominees for the upcoming Annual Meeting are all new to MiMedx and include the Company’s new Chief Executive Officer and two accomplished industry professionals, one of whom is slated to become the new Chairwoman of the Board if she is elected.
- MiMedx believes that its nominees have the industry experience and governance expertise to objectively oversee the Company’s strategy, act in the best interest of shareholders, assist with the resolution of the remaining issues stemming from the prior management team’s misconduct and help put the Company back on the path to success.
- MiMedx believes that, by contrast, Mr. Petit’s campaign for election to the Board is motivated by his desire to achieve personal and professional redemption, rather than a desire to serve shareholders, and MiMedx struggles to understand what either of Mr. Petit’s nominees could possibly bring to the Board