MARIETTA, Ga., Jan. 5, 2018 /PRNewswire/ -- MiMedx Group, Inc. (NASDAQ: MDXG), the leading biopharmaceutical company developing and marketing regenerative and therapeutic biologics utilizing proprietary human placental tissue allografts, today provided answers to certain questions being asked by MiMedx shareholders related to the illegal short selling attacks the Company is experiencing.
The Company reminds shareholders that updates are made regularly to the MiMedx website within the "Short Selling Commentary" section. MiMedx has responded and will continue to respond to published and tweeted allegations where there is innuendo relative to regulatory or illegal violations. The Company reports that it will generally not respond to the numerous other allegations related to illogical innuendo on various subjects. These include outrageous allegations such as corporate officers are going to jail, the Company has biases against women and minorities, employees are subjected to harsh actions if they speak up, etc.
The latest in this category of allegations is so irrational that the Company is mentioning them to demonstrate just how ridiculous these matters have become. The Company reported these bizarre allegations include that the MiMedx CEO utilizes disposable phones (referred to as "burner" phones in their allegations) to conduct business. The Company's CEO has never bought or utilized such a phone. In addition, allegations were made that the Company's CEO puts recording devices in all local hotel rooms when visitors come to meet with the Company, and he places recording devices in the automobiles of all sales persons. "These are the types of ridiculous claims that continue to be made by this unscrupulous group of short sellers," said Parker H. "Pete" Petit, Chairman and CEO. "They are so outlandish that they would almost be considered comical except for the fact that some shareholders can be deceived by these lies and make poor investment decisions."
Petit added, "We will continue to answer important allegations in a professional manner on our website. To the Company's knowledge, we have answered and sufficiently refuted any allegations of significance. Shareholders should recall that this group of short sellers published and placed on a website a fraudulent email, supposedly written by a current MiMedx employee, alleging numerous types of corporate malfeasance. These short sellers were involved in creating this fraudulent email and forwarded it to numerous publication outlets, law firms, regulators, and the Company's competition. The Company has requested this email be removed from their websites, without any response. This is one of many examples demonstrating how these individuals are prone to create fraudulent documents and make unsubstantiated allegations as part of their normal routine."
As another example, the Company reported that a false email address was set up for the MiMedx CEO, which was used to forward counterfeit messages to one of the analysts who reports on the Company. The scheme was caught by the analyst after a few messages. However, one can imagine where the communication was headed, and what could have happened if it were not recognized as a fraud. The Company believes the short sellers were involved with this scheme.
Bill Taylor, President and COO, commented, "We expect to press release our 2017 financial results on or about February 23, 2018 which we expect will further demonstrate the significant progress we made during 2017. As reported in our earlier communications to shareholders, we continue to cooperate with the SEC in the investigation and respond to all requests from the Commission. We are looking forward to clearing the air on these unsubstantiated allegations."
"We apologize to our shareholders for having to endure this illegal short selling activity, and we will continue to do our utmost to bring this activity to closure. As you are well aware, the Company has taken civil action against certain of these entities, and we are actively encouraging federal regulators to halt illegal activities of this nature. In the months and quarters ahead, we look forward to continuing to report outstanding operating results and provide updates on the compelling study results of our future product lines as they progress through the Food and Drug Administration (FDA) Investigational New Drug / Biologic License Application (BLA/IND) process. The Company is performing very effectively and efficiently, and I believe this performance will continue," concluded Petit.
MiMedx® is the leading biopharmaceutical company developing and marketing regenerative and therapeutic biologics utilizing human placental tissue allografts with patent-protected processes for multiple sectors of healthcare. "Innovations in Regenerative Medicine" is the framework behind our mission to give physicians products and tissues to help the body heal itself. We process the human placental tissue utilizing our proprietary PURION® Process among other processes, to produce safe and effective allografts. MiMedx proprietary processing methodology employs aseptic processing techniques in addition to terminal sterilization. MiMedx is the leading supplier of placental tissue, having supplied over 1 million allografts to date for application in the Wound Care, Burn, Surgical, Orthopedic, Spine, Sports Medicine, Ophthalmic and Dental sectors of healthcare. For additional information, please visit www.mimedx.com.
Important Cautionary Statement
This press release includes forward-looking statements, including statements regarding the timing and content of our 2017 financial results, and the future reporting of outstanding operating results and compelling study results. These statements also may be identified by words such as "believe," "except," "may," "plan," "potential," "will" and similar expressions, and are based on our current beliefs and expectations. Forward-looking statements are subject to significant risks and uncertainties, and we caution investors against placing undue reliance on such statements. Actual results may differ materially from those set forth in the forward-looking statements. Among the risks and uncertainties that could cause actual results to differ materially from those indicated by such forward-looking statements include the risk that we may experience delays in releasing our financial statements, the Company's financial results may not show the expected progress, future operating results may not be as expected and study results may not be as anticipated. For more detailed information on the risks and uncertainties, please review the Risk Factors section of our most recent annual report or quarterly report filed with the Securities and Exchange Commission. Any forward-looking statements speak only as of the date of this press release and we assume no obligation to update any forward-looking statement.
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SOURCE MiMedx Group, Inc.
Michael Senken, Phone: (770) 651-9100; Investor Contact: COCKRELL GROUP, Rich Cockrell, 877-889-1972, firstname.lastname@example.org, cockrellgroup.com