MiMedx Shareholder Group says board making 'destructive' business decisions
Mimedx Shareholder Group issued the following statement to fellow shareholders of Mimedx Group: "MiMedx Group, Inc. just announced the signing of an agreement for a $75M line of credit. The documents that the Company had to publish included for the first time its EBITDA since the second quarter of 2018. EBITDA is a measure of company profitability and potential cash flow. In the company's disclosure, the EBITDA for the second quarter of 2018 was $24.8M. EBITDA has continued to drop each quarter. And, for the first quarter of 2019, it was down to $7.1M. When the full financials are published, we believe you will find that is because of significant revenue deterioration and exorbitant costs related to legal, accounting and consulting expenses. This deterioration in profitability took place in spite of the Board's authorizing a 24% cut in the employee base, including sales personnel, on December 5th, 2018. That decision was supposed to result in improvements in EBITDA and cash flow. This is another example of destructive business decisions coming from this Board and the lack of experienced executive management... Shareholders should seriously consider these very important metrics that MiMedx just published in terms of considering, not only their lack of performance and destructive decisions related to the progress of the Company, but also to the experience of persons that will be needed on the management team and in the Board room. Vote for the nominees on the WHITE card and the two key proposals to ensure Board responsiveness to shareholders."