Rockwell Medical Responds To Richmond Group
Published: Aug 29, 2017
WIXOM, Mich., Aug. 29, 2017 (GLOBE NEWSWIRE) -- Rockwell Medical, Inc. (NASDAQ:RMTI) today issued the following statement concerning the Richmond Group’s filing of an amended Schedule 13D with the Securities and Exchange Commission yesterday:
Since the annual meeting of shareholders in June, Rockwell has been attempting to work constructively with its new director, Mark Ravich, and the Richmond Group (“Richmond”), the shareholder that solicited votes for Mr. Ravich. As a director, Mr. Ravich has received the same opportunity to access Rockwell’s corporate information and the same invitations and rights of participation in Rockwell’s Board meetings as all other directors.
Mr. Ravich failed to attend a properly noticed Board meeting. Mr. Ravich acknowledges that he received no less than two written notices of the meeting and that he communicated with the Company less than three hours prior to the meeting; an email was also immediately sent to Mr. Ravich when he failed to show up. Because Mr. Ravich failed to attend the meeting, the Board held another meeting seven business days later specifically for Mr. Ravich and re-visited all of the items that were previously addressed at the meeting Mr. Ravich missed.
Mr. Ravich has also been afforded ample opportunity to seek information from the Company and its executive officers. He has received extensive information pursuant to his requests. The Company is unaware of any outstanding information requests from Mr. Ravich.
Moreover, Rockwell has tried to work constructively with David Richmond and the Richmond Group, including the Company’s offer to let the Richmond Group nominate a new director to the Board. Mr. Richmond and Mr. Ravich however, instead have demanded that Rockwell pay them personally as much as $1.1 million (recently moved to $875,000) if the directors want “peace.” In this context, the Richmond Group specifically threatened that it would wage a proxy contest to unseat the Company’s CEO in 2018 if Mr. Richmond was not paid this significant sum. Mr. Ravich similarly threatened to wage an “all-out war” against the Rockwell directors personally if he and Mr. Richmond were not given at least $1 million.
The Rockwell board does not believe it is in the best interest of Rockwell or its shareholders for the Company to pay Mr. Richmond and Mr. Ravich the $875,000 they are now demanding, just so that the directors can live in “peace.” Rockwell believes that Ravich’s baseless counterclaims and yesterday’s Schedule 13D filing is the start of the “war” that Mr. Ravich and Mr. Richmond have repeatedly threatened.
Rockwell denies all of the substantive allegations in Mr. Ravich’s counterclaims and continues to believe that the Company’s lawsuit against Mr. Ravich and the Richmond Group presents a valid claim. A federal court recently refused to dismiss the claims against Mr. Ravich and the Richmond Group.
The Company will continue to respect Mr. Ravich’s position as a director of the Company and will continue to invite and evaluate the views of its shareholders, including the Richmond Group.
About Rockwell Medical
Rockwell Medical is a fully-integrated biopharmaceutical company targeting end-stage renal disease (ESRD) and chronic kidney disease (CKD) with innovative products for the treatment of iron replacement, secondary hyperparathyroidism and hemodialysis.
Rockwell’s innovative drug Triferic is the only FDA approved therapy to replace iron and maintain hemoglobin in hemodialysis patients suffering from anemia. Triferic delivers iron to patients during their regular dialysis treatment, using dialysate as the delivery mechanism. Triferic has demonstrated that it safely and effectively delivers sufficient iron to the bone marrow and maintains hemoglobin, without increasing iron stores (ferritin). Rockwell intends to market Triferic to hemodialysis patients in the U.S. dialysis market and globally.
Rockwell’s FDA approved generic drug Calcitriol is for treating secondary hyperparathyroidism in dialysis patients. Calcitriol (active vitamin D) injection is indicated in the management of hypocalcemia in patients undergoing chronic renal dialysis. It has been shown to significantly reduce elevated parathyroid hormone levels. Reduction of PTH has been shown to result in an improvement in renal osteodystrophy. Rockwell intends to market Calcitriol to hemodialysis patients in the U.S. dialysis market.
Rockwell is also an established manufacturer and leader in delivering high-quality hemodialysis concentrates/dialysates to dialysis providers and distributors in the U.S. and abroad. As one of the two major suppliers in the U.S., Rockwell’s products are used to maintain human life by removing toxins and replacing critical nutrients in the dialysis patient’s bloodstream. Rockwell has three U.S. manufacturing/distribution facilities.
Rockwell’s exclusive renal drug therapies support disease management initiatives to improve the quality of life and care of dialysis patients and are intended to deliver safe and effective therapy, while decreasing drug administration costs and improving patient convenience. Rockwell Medical is developing a pipeline of drug therapies, including extensions of Triferic for indications outside of hemodialysis. Please visit www.rockwellmed.com for more information.
Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws, including, but not limited to, Rockwell’s intention to sell and market Calcitriol and Triferic. Words such as “may,” “might,” “will,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “predict,” “forecast,” “project,” “plan,” “intend” or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While Rockwell Medical believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation those set forth in Rockwell Medical’s SEC filings. Thus, actual results could be materially different. Rockwell Medical expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.
Contact: Michael Rice LifeSci Advisors, LLC 646-597-6979