One of Online-therapy app Talkspace's ( NASDAQ: TALK ) largest investors is pushing for the company to appoint a permanent chief executive offer and take steps to help stabilize the company's faltering share price.
Firstime Ventures GP, which has a 4.9% stake in Talkspace, also wants to see the company's long term plan and wants to know if management has received and evaluated plans to sell the company, according to a letter dated Monday and written to Talkspace's interim CEO Doug Braunstein, a copy of which was viewed by Seeking Alpha.
The letter comes after a Seeking Alpha report in June that TalkSpace received but declined a buyout approach from American Well Corp. ( AMWL ). Talkspace also shot down a similar approach from privately held Mindpath at about $2.50 to $3 share. Axios originally reported Mindpath's approach in late May.
"Firstime is troubled by reports that have been brought to its attention to the effect that management may have declined to consider multiple approaches by various parties interested in discussing the purchase of Talkspace," Anthony J. Bosco, special counsel at Zeichner Ellman & Krause, a law firm that represents Firstime, wrote in a letter to Braunstein.
Talkspace didn't immediately respond to Seeking Alpha email request for comment.
Talkspace ( TALK ), which has counted Olympic swimming gold medalist Michael Phelps and singer Demi Lovato as celebrity endorsers, went public through a high-profile SPAC deal last year , but has struggled since then.. The company's co-founder and CEO Oren Frank also stepped down in November .
The stock has fallen almost 90% since its de-SPAC from Hudson Executive Investment Corp., the SPAC that brought TALK public. in late June of last year. TALK sank 8.1% on Thursday.
"Firstime has become troubled by the precipitous price drop in Talkspace’s common stock, the company’s increasingly poor financial performance, and management’s failure to follow through on commitments to shareholders and to communicate plans for a turnaround," Bosco wrote.
Talkspace ( TALK ) announced earlier this month that holders elected Jon Cohen and Michael Hansen to the company's board.
Citi analyst Daniel Grosslight wrote in a note in early June that an acquisition of TALK is more likely than he had originally contemplated.
Grosslight said at the time that some major shareholders of Talkspace ( TALK ) that he had spoken with were supportive of a sale.
For further details see:
Talkspace investor demands appointment of CEO, plan to stabilize stock price