MDXG - Prescience Point Capital Management Calls on MiMedx to Confirm the Company Has Received Letters of Serious Concern from other Shareholders

PR Newswire

Disappointed that the MiMedx Board Has Resorted to Disinformation and Distortions to Distract Shareholders from the Board's and Management's Own Failures

Reiterates Intention to Withhold Votes Against Directors Phyllis Gardner and James Bierman at 2022 Annual Meeting and Vote Against Approval of Executive Compensation

BATON ROUGE, La. , May 18, 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 issued the following statement:

"In recent press releases and letters, MiMedx has misleadingly portrayed Prescience Point as a lone disgruntled shareholder. However, from what we understand, several other large MiMedx shareholders, representing millions of MDXG shares, have sent correspondence to the Company outlining similar concerns to ours. With an important vote coming up 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 call upon the Board and management to publicly confirm that they have received letters of concern from other large shareholders in recent weeks ," stated Eiad Asbahi , Founder and Managing Partner of Prescience Point.

As an example of the apparently widespread discontent within the MiMedx shareholder base, Prescience Point noted the following comments from an e-mail sent to the Board by a large, longstanding shareholder that was recently made publicly available on an investor information website:

"…However, the crowning blow to all of this is [CEO] Tim's and this Boards "Let them eat cake' plan to pass around shares of stock like candy. Shareholders are being held hostage by the resulting dilution of this ill gained compensation.

"Shame on this Board too for accepting hundreds of thousands in stock and cash each year while shareholders suffer. You are all derelict in your fiduciary responsibility to us – the true owners of MIMEDX who put our hard-earned money into this company.

"This management and board are not aligned with shareholders' best interests and are a textbook example of all that is wrong with corporate governance in today's world of greed and self dealing."

"Rather than acknowledge the egregious value destruction caused by the misguided strategies and actions of the Board and management, and the totally unjustified stock awards they have granted themselves, the Company has engaged in personal attacks against me based on events from over two decades ago that have long been settled. This is both a distressing weakness of character in a publicly-traded healthcare company, and a desperate attempt to distract shareholders from the failings of the Board and management," said Mr. Asbahi.

Prescience Point reiterated its intention to WITHHOLD its votes against two members of MDXG's Board of Directors, Phyllis Gardner and James Bierman , who are up for election at the Company's annual meeting, and to vote AGAINST approval of the executive compensation package.

"We intend to send a message that the repeated failures and deficiencies of the MiMedx Board and management will not be tolerated by shareholders, by voting WITHHOLD against two directors and voting NO on the Company's excessive and undeserved executive compensation.  We believe that MDXG shareholders should not swallow all the misleading and self-serving disinformation constantly being served up by the Board and management, and that it is incumbent upon the Board as fiduciaries to set the record straight," Mr. Asbahi noted.

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 .

SOURCE Prescience Point Capital Management