Management Turmoil Adds Salt to an Already Wounded MiMedx

INVESTMENT HIGHLIGHTS: On 7/2/18, MDXG announced the resignation of its CEO, President & COO, and changes to its Board of Directors (BOD). MDXG now has an interim CEO (David Coles, just appointed) and interim CFO (Robert Borkowski, appointed previously). While we believe the MDXG shares could ultimately be worth more than where they are trading today, we maintain our Hold rating given potential nearer-term risks including: slowing revenue growth due to management turmoil, the dollar amounts of the restatements, a potential delisting, the SEC/DOJ investigations, the ongoing internal Audit Committee investigation, and the potential for MDXG to need to raise capital. For what it's worth, the press release noted that MDXG has no debt and has sufficient liquidity to fund all of its operational needs and investments.   MARIETTA, Ga., July 2, 2018 /PRNewswire/ -- The Board of Directors of MiMedx Group, Inc. (NASDAQ: MDXG), a leading developer and marketer of regenerative and therapeutic biologics, today announced that Parker H. "Pete" Petit has resigned from his roles as the Company's Chairman of the Board and Chief Executive Officer but currently remains a director on the Board. MiMedx also announced that William C. "Bill" Taylor has resigned as President and Chief Operating Officer and as a member of the MiMedx Board. These resignations, which follow the recent departures of the Company's Chief Financial Officer and Corporate Controller and Treasurer, are based on the ...
Source: MDDI - Category: Medical Devices Authors: Tags: Business Source Type: news