The central narrative arc is accurate: a vote, by dissident shareholders is afoot; the meeting is today. [Been in a funk all morning now that the Supremes… have crapped on bodily autonomy.]
But it is simply NOT true that Martin’s old shares DON’T vote. It is only true that Martin cannot vote them.
Those shares are to be voted by the Receiver, Mr. Abbott (we showed you the proxy on June 9, 2022) — and he has sworn to vote in favor of what’s best for a recovery of money, from the company, for Shkreli’s judgment creditors. The meeting will elect six new independent directors, dropping the old “Martin-wing” to non-majority status.
There is little doubt that he will vote against keeping this board, as currently constituted. Here’s the bit:
…Shkreli previously held 44% of the company. The activist investors say they aren’t sure what percent of shares the board members have now. Aryeh adds that the board appears to still be packed with Shkreli’s cronies who may do whatever he wants.
“It all comes down to a handful of institutional shareholders,” Aryeh told The Post. “They need to vote Martin’s cronies out, and thus end his embarrassing and massively overstated influence on the perception of the life-saving pharmaceutical industry….”
The NY Post also suggests the board could vote itself enough additional shares to keep the current wing in power. But Abbott’s 37% plus the dissidents and a few institutional holders would almost certainly vote against such a corporate wasting asset transaction.
Thus, it is highly unlikely to go that way.
Martin’s formerly “stored wealth” in Phoenixus AG will soon be in the hands of his creditors. Dr. Koestler, the FTC and several state AGs and the… DoJ (and the lawyers representing all of them).
So it goes.
