Camac Partners Condemns Forte Biosciences’ Seemingly Defensive and Unjustifiable Capital Raise
17 Août 2022 - 2:00PM
Business Wire
Fears the Board has Diluted Shareholders for
Self-Serving Purposes Following the Emergence of Four 13D Filers,
Suggesting the Directors Have Potentially Breached Their Fiduciary
Duties
Notes the Company Trades at a ~40% Discount
to Cash
Urges the Board to Reverse Course and Return
Capital to Long-Suffering Shareholders – or Risk Facing Action from
Camac
Camac Partners, LLC (together with its affiliates, "Camac" or
“we”), which is one of the largest shareholders of Forte
Biosciences, Inc. (Nasdaq: FBRX) (“Forte” or the “Company”), today
expressed concerns regarding the Company’s sizable trading price
discount relative to its cash on hand and the Board of Directors’
(the “Board”) decision to conduct a highly dilutive equity capital
raise following the emergence of four separate Schedule 13D
filers.
Eric Shahinian, founder and managing member of Camac,
commented:
“Since Forte’s initial public offering, the Company’s share
price has declined approximately 95%. We believe shareholders have
lost all confidence in Forte due to the Board and management’s
failure to establish a sensible capital allocation strategy, as
well as inexcusable lapses in governance. We understand why the
Company now trades at an approximately 40% percent discount to its
roughly $45 million in cash. To make matters worse, following the
emergence of four separate 13D filers that independently possess
significant concerns, the Board has conducted a dilutive capital
raise at a massive discount to cash that we view as defensive and
without a justifiable business purpose. Rather than take such a
brazen step that permanently impairs investors, the Board should
consider how to return capital to the Company’s long-suffering
shareholders.
We are now putting the Board on notice that Camac is prepared to
take any and all actions to protect its investment, which could
include initiating litigation against the directors and garnering
support from fellow shareholders to remove all directors for cause
pursuant to section 20(b) of the Company's bylaws. It seems to us
that the Board is more focused on entrenchment than honoring its
fiduciary duties. If that is not the case, the Board should
promptly announce a plan to return capital to shareholders."
About Camac
Camac is a private investment firm founded in 2011. Camac
focuses on extremely mispriced assets in discrete pockets of
opportunity. Camac prides itself on its unique sourcing, flexible
mandate, and constant focus on non-competitive opportunities. Its
investments are long term in nature and focused on compounding
capital over several decades rather than months or years.
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version on businesswire.com: https://www.businesswire.com/news/home/20220817005265/en/
Longacre Square Partners Greg Marose / Kate Sylvester,
646-386-0091 gmarose@longacresquare.com /
ksylvester@longacresquare.com
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