ALPHARETTA, Ga., June 11, 2019 /PRNewswire/ -- Velan Capital, L.P. (together with the other participants in its solicitation, "Velan" or "we"), one of the largest stockholders of Progenics Pharmaceuticals, Inc. ("Progenics")(NASDAQ: PGNX), announced today that it has delivered a letter to stockholders expressing its concerns with the latest decision of the Progenics Board of Directors (the "Board") to further dilute stockholders, and providing clarity on certain misleading statements made by the Board.
Velan's letter can be found here: https://www.savepgnx.com/api/v1/files/60f884e8-d60f-4321-a078-08d6e8d5b29b
In the letter, Velan calls out the Board for its decision last week to dilute stockholders again by issuing equity. The Board issued 1.63 million shares of Progenics common stock at approximately $4.20 per share for a milestone payment associated with its acquisition of AZEDRA. The Board chose to issue this dilutive equity rather than make this payment from its ample balance sheet cash reserves of ~$110 million. Given the circumstances, Velan sees no rational reason to issue costly and undervalued equity.
This situation is simple. The Board does not have stockholders' best interests at heart. Peter Crowley and Michael Kishbauch, the sole members of the Compensation Committee, own ZERO shares of common stock (excluding shares underlying options) and support flawed corporate goals, which we believe incentivizes the dilution of stockholders for the personal gain of executives and directors.
Change must occur to have true accountability and alignment with stockholders. We urge stockholders to vote AGAINST the re-election of Messrs. Crowley and Kishbauch on the GREEN proxy card.
No dilution without representation!
Okapi Partners LLC
Pat McHugh / Jason Alexander
SOURCE Velan Capital, L.P.