MiMedx (NSDQ:MDXG) today claimed an early win in its proxy war with the CEO it fired for cause last year, saying that shareholders elected its slate of directors to the board, including new chief executive Timothy Wright.
Marietta, Ga.-based MiMedx makes regenerative and therapeutic biologics using human placental tissue allografts. The ouster last year of then-CEO Parker Petit and president & COO William Taylor for cause came after an independent probe into its revenue recognition forced MiMedx to restate its earnings going back to 2012. The investigation found that Petit and his management team enacted a scheme to cook the books, retaliating against anyone who questioned their accounting practices and secretly filming their offices.
In late May, MiMedx released a new “comprehensive plan” to refresh the board, in cooperation with major shareholder Prescience Point Capital Management, to include recently appointed CEO Timothy Wright, Kew Group co-founder, president & CEO Kathleen Behrens Wilsey and Apollo Endosurgery (NSDQ:APEN) CEO Todd Newton. Petit then launched a proxy war, nominating himself, former Pulte Home tax director David Furstenburger and George & Lorenson partner Shawn George for board seats.
Today the company said that a preliminary count by its proxy solicitors indicated that shareholders approved its slate of directors and rejected the Petit group’s proposal to hold the annual meeting in August.
“We thank our shareholders for their strong support and participation. The overwhelming support the company has received throughout this process is an unmistakable statement by MiMedx’s shareholders that it is time to move beyond the Pete Petit era and to focus again on MiMedx’s business and growth opportunities. With such strong support for our new CEO and board members, we are hopeful that Mr. Petit will stand down from further actions that could distract the company from its mission to serve patients and in turn create value for shareholders. The new management team and refreshed board are eager to get back to work and further distinguish MiMedx as a leader in advanced wound care and an emerging therapeutic biologics company,” MiMedx said in a prepared statement.