MARIETTA, Ga., Feb. 6, 2017 /PRNewswire/ -- MiMedx Group, Inc. (NASDAQ: MDXG), the leading regenerative medicine company utilizing human amniotic tissue and patent-protected processes to develop and market advanced products and therapies for the Wound Care, Surgical, Orthopedic, Spine, Sports Medicine, Ophthalmic, and Dental sectors of healthcare, announced today the decision of its Board of Directors to authorize an increase in the Company's Share Repurchase Program.
This action by the MiMedx Board of Directors authorizes an increase of $10 million to the Company's Share Repurchase Program. This action brings the total authorized to $76 million since the Share Repurchase Program commenced in May 2014. The Company reported that in light of the prevailing market conditions, the Company's available resources and other factors, the MiMedx Board of Directors believes the stock repurchases are a favorable investment for the Company. The Board agreed to review this program again at its scheduled meeting on February 22nd, and to consider a substantial additional commitment to this beneficial program.
Parker H. "Pete" Petit, Chairman and CEO, stated, "Since the Share Repurchase Program commenced, our program has acquired approximately $65 million of our shares, which has proven to be very anti-dilutive. When we acquire shares at these very low prices, our high growth profile in both revenues and now profits produces an extremely anti-dilutive result. It is my personal belief that the Company's stock price is very undervalued at present. Many investment bankers have told us they have this same opinion. Therefore, I would expect we will continue to take advantage of these current low prices to enhance shareholder value as permitted."
Petit continued, "MiMedx management is just as frustrated with the volatility of our shares as are our shareholders. We know there are ongoing issues associated with naked short selling in our stock. These naked short selling practices are illegal, and we are continuing to be diligent in bringing to light the perpetrators of these illegal activities."
"We believe the 'fake allegations and fake news' should be discredited when the Company publishes the key findings of the Report from the Audit Committee and the 2016 audited financial results on February 22nd," concluded Petit.
MiMedx® is an integrated developer, processor and marketer of patent protected and proprietary regenerative biomaterial products and bioimplants processed from human amniotic membrane and other human birth tissues, such as amniotic fluid, umbilical cord and placental collagen, and human skin and bone. "Innovations in Regenerative Biomaterials" is the framework behind our mission to give physicians products and tissues to help the body heal itself. We process the human amniotic membrane utilizing our proprietary PURION® Process, to produce a safe and effective implant. MiMedx proprietary processing methodology employs aseptic processing techniques in addition to terminal sterilization. MiMedx is the leading supplier of amniotic tissue, having supplied over 700,000 allografts to date for application in the Wound Care, Burn, Surgical, Orthopedic, Spine, 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, that the Company's stock repurchases are a favorable investment for the Company, the belief that the Company's stock price is very undervalued at present, the Company's expectations to continue the use of the share repurchase program to enhance shareholder value, the Company's belief that there are ongoing issues associated with naked short selling in the Company's stock, and the current rumors should dissipate considerably when the Company publishes the key findings of the Report from its Audit Committee and the Company's 2016 audited financial results. 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 include that the stock repurchases may not be a favorable investment for the Company, the Board may not consider a substantial new commitment to the share repurchase program at its February 22, 2017 meeting, the Company's stock price may not be undervalued, the Company's continued use of the share repurchase program may not enhance shareholder value or the Company may not continue to use the share repurchase program, there may not be ongoing issues associated with naked short selling or the issues may not be impacting the Company as believed, the current rumors and news may not dissipate considerably when the Company publishes the key findings of the Report from its Audit Committee and the Company's 2016 audited financial results, 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, 2015, and its most recent Form 10Q filing. 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.
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SOURCE MiMedx Group, Inc.