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Prescience Point Capital Management Says MiMedx Shareholders Have Spoken: Voiced Their Desire For Change

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Notes that a Majority of the Non-Affiliated, Non-Institutional Shares Voted Against the Re-Election of Incumbent Directors, and Against Approval of Executive Compensation

Demands Leadership Immediately Address Massive Divergence Between the Share Price and Underlying Value

Vows to Continue Its Efforts to Hold MiMedx Leadership Accountable

BATON ROUGE, La., June 14, 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 an open letter to shareholders commenting on the results of the Company's annual meeting of shareholders, held on June 7, 2022:

Dear Fellow MiMedx Shareholders:

MiMedx has attempted to put a positive spin on the voting results of its recent annual meeting, but a more detailed and objective analysis of the results paints a far different picture and reflects widespread discontent within the Company's shareholder base. We encourage all MiMedx shareholders to review the final results, as tabulated by the independent Inspector of Elections and filed in a Form 8-K with the Securities and Exchange Commission.

An analysis of the results reveals that, while the MiMedx's proposals were approved, the results were heavily distorted by the votes of parties affiliated with the MiMedx Board and other Company insiders including EW Healthcare Partners ("EW"), who collectively own almost 23% of MDXG's outstanding common stock. The results were further skewed by the votes of institutional shareholders, the majority of whom automatically vote in-line with the recommendations of proxy advisors Glass-Lewis and ISS. In a future true contested election, we would have an opportunity to present our case to the proxy advisors and gain the support of the institutional investor vote.

Rather than resounding acceptance, as implied by the Company, the non-affiliated, non-institutional vote reflected widespread shareholder discontent with the misguided strategic decision-making, value-destructive policies, and excessive executive compensation practices of the Board and management. Fully 21.8 million and 19.1 million shares were voted WITHHOLD / ABSTAIN against the re-election of James Bierman and Phyllis Gardner, respectively, and 30.8 million shares were voted AGAINST the executive compensation or so-called "say-on-pay" proposal. Prescience Point estimates that approximately 56% and 49% of the shares voted by non-affiliated, non-institutional holders voted WITHHOLD / ABSTAIN against the re-election of James Bierman and Phyllis Gardner, respectively, and 79% voted AGAINST the Board-approved "say-on-pay" proposal.

The shareholder base has spoken, and the message is clear: The value destruction, and reprehensible track record of excessive compensation and self-dealing under the current Board and management, enabled by EW, its Board designee Martin Sutter, and Chairwoman Dr. M. Kathleen Behrens, will not be tolerated for much longer. We are hopeful that the unaffiliated shareholders' response to our calls for change will serve as a catalyst to drive improved performance, accountability, governance and compensation practices at the Company. We also hope the Board and management will heed the call of innumerable shareholders and show confidence in MiMedx by purchasing shares on the open market.

As detailed in our May 31st presentation, we continue to believe that MiMedx is a highly-valuable, but grossly mismanaged company that could be worth multiples of its current valuation if only the Board and management would focus more on the shareholders rather than themselves.  The current Board and management have shown nothing but disregard and even contempt for the Company's individual or retail shareholders, as demonstrated in a recent Wall Street Journal article in which CFO Pete Carlson took a swipe at MDXG's retail investors by stating, "Individual investors… sometimes put pressure on the stock unrelated to the company, for example when selling shares to fund a home purchase or cover medical expenses," and, "With institutions, there's less noise about individual financial situations because it's part of a broader portfolio."

As demonstrated by the results of the election, as well as recent letters of disapproval sent by several large shareholders, the MiMedx shareholder base appears to be unified in its discontent with the status quo. The divide and conquer, and smoke and mirrors tactics that the Board and management have used in the past will no longer work. If MiMedx continues down its current misguided path, shareholders will have an opportunity to take back control of the Company at next year's annual shareholder meeting, where four Board seats will be up for election.

We are appreciative of all the shareholders who voiced their disapproval and voted against MiMedx's incumbent nominees and compensation package.  We will closely monitor the Company to make sure the Board and management continue to implement the changes we have pushed for in our campaign, and, if necessary, will take further actions to ensure that the Company is on the right path to creating value for all of its shareholders.  If the only way to realize the promise of MiMedx is to refresh the Board and replace CEO Timothy Wright and Chairwoman Dr. M. Kathleen Behrens, then we will lead that effort.


Eiad Asbahi, Founder
Prescience Point Capital Management


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