ASFV Committee Reveals Troubling Statements Made by Entrenched AIM Board Uncovered Through Discovery in Delaware Action
24 Octobre 2022 - 2:30PM
Jonathan Jorgl, an AIM ImmunoTech Inc. (NYSE American: AIM) (“AIM”)
stockholder, together with his nominees, Robert L. Chioini and
Michael Rice (collectively, the “AIM Stockholder Full Value
Committee” or the “ASFV Committee”), today announced that several
alarming statements from the incumbent directors were uncovered
through the discovery process in the pending Delaware Action in
which the parties are awaiting a ruling. The ASFV Committee
remains confident that Mr. Jorgl’s nomination was valid. Until
the court rules, the stockholders should not be distracted by
cherry-picked, incomplete, and misleading information disseminated
by the incumbent board.
“We believe the entrenched AIM Board’s
statements about stockholders, expectation for excessive
compensation, and tactics to deny any stockholder nomination are
truly reprehensible,” stated the ASFV Committee. “The Board’s
actions, before the ASFV nomination and since, clearly demonstrate
that they are breaching their fiduciary duties to the Company and
its stockholders. We believe it is clear that this entrenched Board
is not putting the interests of the Company and its stockholders
first in making decisions and evaluating opportunities.”
What actually was learned through discovery,
among many other troubling findings not becoming of a board of
directors, was that:
The Incumbent Board Does Not Care that
Stockholders Are Incurring Massive Losses
- All the directors testified during
their depositions that they did not pay much attention to AIM’s
tumbling stock price and that they took no responsibility for its
decline, going as far as blaming “the war in Ukraine,” Vladimir
Putin, the COVID-19 pandemic, and “stock manipulation” schemes by
unknown actors.
- William Mitchell – the Chairman of
AIM’s Board – also testified that “the only thing that concerns”
him about the plummeting stock price if the price got low enough to
trigger the delisting of AIM’s stock.
- The Board systematically ignores
stockholder inquiries, methodically blocks stockholder email
addresses, fails to hold investor calls for multi-month stretches
at a time, and rarely tracks or discusses AIM’s stock.
- William Mitchell admitted he “does
not hear any report about what the stockholders think” and “refuses
to talk with stockholders directly.”
- Thomas Equels went so far as to
call certain stockholders “troll[s],” accused others of not being
“legitimate stockholders,” and confirmed that he has outsourced all
investor relations to outside consultants that either block or
filter out the negative commentary, so the incumbent directors
never have to hear of it.
- Rather than confront disgruntled
stockholders, the incumbent Board has tried to bully them into
submission through frivolous lawsuits, defamatory press releases,
and threatening legal letters as part of a long-standing practice
to silence stockholders whom the Board believes are capable of
starting a proxy contest.
Rather than Expand the Board to Better
AIM and Restore Stockholder Value, the Incumbent Board Has Instead
Elected to Use AIM’s Cash to Fund Increases in Their
Compensation
- The incumbent board members
admitted facts demonstrating that they are in over their heads,
such as: (i) the fact that Thomas Equels (a lawyer by training) has
had to learn how to run AIM “on the job” given that he has no prior
experience working in pharmaceutical companies, running a public
company, or overseeing clinical trials; (ii) the fact that William
Mitchell is an academic with no other experience sitting on the
board of a public company; and (iii) the fact that Stewart
Appelrouth (an accountant by training) has no prior experience
working for a pharmaceutical company or sitting on the board of a
public company.
- The only apparent reason Thomas
Equels appointed Stewart Appelrouth to the board is that Appelrouth
is a long-time friend and colleague of Equels who had assisted
Equels and his wife on their personal income tax returns and served
as a testifying expert in cases handled by Equels and his wife when
they were in private practice.
- Peter Rodino – the executive who
Thomas Equels principally relies to run the company – is
overstretched given that he is currently attempting to fulfill four
separate roles at AIM, including serving as AIM’s Chief Operating
Officer (even though he has no prior experience in that role),
General Counsel (even though he had not practiced law for 16 years
prior to taking this role), Executive Director of Governmental
Relations (another role he has never held), and Corporate Secretary
(another role he has never held).
- Notwithstanding the foregoing, the
incumbent Board members have never once considered expanding the
Board or hiring executives with relevant experience to help run
AIM.
- Instead, since taking control of
the Board in 2016, the incumbent board members have focused on
increasing their compensation packages, with Equels’s package
increasing by millions of dollars during this time. One AIM
stockholder testified that when he confronted Equels about this
bloated compensation package, Equels said that he needs to be
compensated millions of dollars per year because he had grown
accustomed to making that compensation when he was a trial
lawyer.
The Incumbent Board Members Rejected Mr.
Jorgl’s Nomination Letter so They Could Entrench Themselves and
Keep Enriching Themselves Off of the Backs of AIM
Stockholders
- William Mitchell testified during
his deposition that he knew he was going to reject Mr. Jorgl’s
nomination letter as soon as it came in (and before any
investigation into its validity) and that he just needed any
pretext – no matter how flimsy or attenuated – to reject it.
- Within just hours after receiving
Mr. Jorgl’s nomination letter, the incumbent board’s lawyers and
consultants were instructed to “scrub” the nomination letter to
find some reason to deny it.
- The so-called “investigation” that
the Board conducted was results-oriented and conducted for the sole
reason of rejecting the nominations – it consisted entirely of
“Google searches” by Thomas Equels and Peter Rodino.
- Thomas Equels admitted that his
inquiry into Mr. Jorgl’s nomination letter did not reveal “direct
evidence” that supported their basis for rejecting the nominations,
i.e., that there were undisclosed arrangements or understandings
between the ASFV Committee and other AIM stockholders that the
Board believed were “involved” in this nomination.
- William Mitchell and Peter Rodino
admitted that AIM’s conclusion that these individuals were all
working together was based on nothing but a “hypothesis” and
“speculation” that very well “could be wrong.”
- William Mitchell admitted that, had
Mr. Jorgl disclosed those (nonexistent) arrangements or
understandings, Mitchell still would have rejected Mr. Jorgl’s
nomination letter – confirming he was always going to reject the
nominations, regardless of their validity.
- The members of the ASFV Committee
each stated through uncontroverted sworn testimony that they had no
undisclosed arrangements or understandings of any kind, including
with the four AIM stockholders the Board (erroneously) believed
were involved in Mr. Jorgl’s nomination efforts.
- And each of the four AIM
stockholders similarly stated through uncontroverted sworn
testimony that they were not involved with Mr. Jorgl’s nomination
efforts, much less had “arrangements or understandings” with the
ASFV Committee about those nominations. In other words, the
incumbent Board’s pretext for denying Mr. Jorgl’s nomination letter
has been debunked.
The ASFV Committee continued:
What has become
evident is that the incumbent directors have enriched themselves at
the expense of stockholders and patients. They are now panicking
that they may lose their board seats (and excessive compensation)
in a fair election and are desperately trying to spin any narrative
to take the focus off their bad behavior to avoid their expected
proxy loss. The preliminary injunction hearing in Delaware was held
on October 5th, and the parties are currently awaiting a ruling.
The ASFV Committee remains confident that Mr. Jorgl’s nomination
was valid. Pending a decision by the court, the stockholders should
not be distracted by the false narrative and misleading information
disseminated by the incumbent board.
It is time for accountability and much
needed change at AIM – the ASFV Committee urges all stockholders to
vote on the GOLD proxy
card today to elect ONLY Robert L. Chioini and Michael
Rice.
It is important that you mark the boxes
for Robert L. Chioini and Michael Rice ONLY and
leave the boxes for the incumbent AIM directors
unmarked.
Contact:
Alliance Advisors, LLC200 Broadacres Drive, 3rd
FloorBloomfield, New Jersey
07003(877) 728-5012aim@allianceadvisors.com
Important Information and Participants in the
Solicitation
The ASFV Committee has filed a definitive proxy statement and
associated GOLD proxy card with the
Securities and Exchange Commission (“SEC”) to be used to solicit
votes for the election of its slate of highly-qualified director
nominees at the Annual Meeting. Details regarding the ASFV
Committee’s nominees are included in the proxy statement.
THE ASFV COMMITTEE STRONGLY ADVISES ALL STOCKHOLDERS OF AIM TO
READ THE PROXY STATEMENT AND OTHER PROXY MATERIALS AS THEY BECOME
AVAILABLE BECAUSE THEY CONTAIN IMPORTANT INFORMATION.
Information regarding the identity of participants in the ASFV
Committee’s solicitation, and their direct or indirect interests,
by security holdings or otherwise, is set forth in the ASFV
Committee’s proxy statement. Stockholders can obtain a copy of the
proxy statement, and any amendments or supplements thereto and
other documents filed by the ASFV Committee with the SEC for no
charge at the SEC’s website at www.sec.gov. Copies will also be
available at no charge at the following website:
https://viewproxy.com/aim/. Investors can also contact Alliance
Advisors at the telephone number or email address set for the
above.
As of the date hereof, Mr. Jorgl is the record and beneficial
owner of 1,000 shares of common stock, par value $0.001 per share,
of AIM (the “common stock”). As of the date hereof, no other
Participant is the record or beneficial owner of any shares of
common stock.
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