MiMedx Responds to Inquiries Regarding Trading Activity; Reiterates First Quarter and Full Year Goals
Published: Mar 18, 2013
KENNESAW, Ga., March 18, 2013 /PRNewswire/ -- MiMedx Group, Inc. (OTCBB: MDXG), an integrated developer, manufacturer and marketer of patent protected regenerative biomaterials and bioimplants processed from human amniotic membrane, announced today that MiMedx management has received a number of inquiries regarding trading activity in its shares late last week and the resultant drop in the trading price for the Company's common stock.
After investigation, management believes that on Thursday and Friday there was some significant short selling activity and price manipulation orchestrated by a few individuals and brokerage houses, using the Yahoo chat room and Twitter. The Company's investigation is continuing. The Company intends to turn this information over to FINRA, the SEC, and a law firm that specializes in bringing actions to redress these types of activities.
The Company reiterated its first quarter of 2013 revenue goal of between $10.5 and $11.5 million. At this point, the Company expects to meet that goal. The Company also reiterated its full year revenue goal of between $50 and $60 million. As stated previously, actual results generally will depend on how quickly the Medicare intermediaries clear reimbursement for EpiFix®, the Company's wound care allograft, and the subsequent staffing required for the direct sales force in those areas where reimbursement coverage is received. At this point, five of the nine intermediaries have cleared reimbursement for that product.
Parker H. "Pete" Petit, Chairman and CEO, commented, "It is unfortunate that some of our shareholders were duped into selling their shares by unscrupulous parties who stood to profit from their manipulations. My previous company was involved with a similarly orchestrated short sell attack in 2006, so I am familiar with their processes and our solutions. We will do everything we can to bring this situation to quick closure through all available means."
The Company encourages shareholders who have any concerns to call the corporate headquarters and ask to speak with Michael Senken, the Company's CFO, Bill Taylor, the Company's President & COO, or Pete Petit.
"I would encourage our shareholders to disregard the rumors and innuendo, both positive and negative, that develop from chat rooms, Twitter postings or other forms of social media," added Petit. "We have quality analysts who are currently covering MiMedx, and we expect coverage to be initiated by others in the future. It would be prudent to rely on their opinions, rather than social media posts by short sellers who have no immediately enforceable regulatory restrictions on their comments. I want to reiterate that if shareholders have concerns about things you read or hear, please contact one of our executives, who will be happy to answer your questions within regulatory guidelines."
The Company also reminded shareholders that Messrs. Petit, Taylor and Senken will be presenting this week at the Canaccord Genuity Musculoskeletal Conference in Chicago. The MiMedx executives will be presenting on Tuesday, March 19th, at 3:20 p.m. Central Time/4:20 p.m. Eastern Time, and a webcast of this presentation will be available on the Company's website, www.mimedx.com.
About the Company
MiMedx® is an integrated developer, manufacturer and marketer of patent protected regenerative biomaterial products and bioimplants processed from human amniotic membrane. "Innovations in Regenerative Biomaterials" is the framework behind our mission to give physicians products and tissues to help the body heal itself. Our biomaterial platform technologies include the device technologies HydroFix® and CollaFix, and our tissue technologies, AmnioFix® and EpiFix®. Our tissue technologies are processed from human amniotic membrane that is derived from the donated placentas. Through our donor program, mothers delivering full-term Caesarean section births can elect in advance of delivery to donate the placenta in lieu of having it discarded as medical waste. We process the human amniotic membrane utilizing our proprietary Purion® Process, to produce a safe, effective and minimally manipulated implant for homologous use. MiMedx® is the leading supplier of amniotic tissue, having supplied over 130,000 allografts to date to distributors and OEMs for application in the Wound Care, Surgical, Sports Medicine, Ophthalmic and Dental sectors of healthcare.
Safe Harbor Statement
This press release includes statements that look forward in time or that express management's beliefs, expectations or hopes. Such statements are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, the revenue goals for the first quarter of 2012 and full year 2013 and the growth in use of EpiFix® allografts following reimbursement coverage in the Medicare and commercial sectors. These statements are based on current information and belief, and are not guarantees of future performance. Among the risks and uncertainties that could cause actual results to differ materially from those indicated by such forward-looking statements that the reimbursement coverage in the Medicare and commercial sectors does not materialize or expands at a rate slower than anticipated, that VA and government business will not continue to increase, that quarterly and full year revenue growth will be below expectations, and the risk factors detailed from time to time in the Company's periodic Securities and Exchange Commission filings, including, without limitation, its 10-K filing for the fiscal year ended December 31, 2012. By making these forward-looking statements, the Company does not undertake to update them in any manner except as may be required by the Company's disclosure obligations in filings it makes with the Securities and Exchange Commission under the federal securities laws.
SOURCE MiMedx, Inc.