AIM ImmunoTech shareholders Kellner Group issues letter calling for board change

AIM ImmunoTech shareholders Ted Kellner, Todd Deutsch and Robert Chioini, collectively, the “Kellner Group”, which owns 6.5% of outstanding shares, issued a statement in connection with the board election. The statement says, among other things, that “the entrenched AIM Board escalates unconscionable waste of corporate assets and hostility to stockholders”, “stockholders are urged to act now before the Board’s reckless spending and self-interested behavior”, “stockholders should not be distracted by false and misleading statements by AIM”, “Kellner Group is fully aligned with stockholders and brings skills, experience and credibility necessary for AIM to be successful”, “we estimate AIM’s incumbent Board has recklessly spent almost $15.0M in the past two years on their self-interested campaign to avoid any accountability to stockholders…this egregious wasteful spending is an intentional strategy by the Board to entrench itself at all costs just so that it can keep enriching itself at stockholder expense…not once has the entrenched Board made any attempt whatsoever to engage in dialogue to reach a mutual agreement or obtain an understanding of the true facts or do anything that might have avoided this destructive and wasteful path…..the entire incumbent Board and management own less than 2% of outstanding AIM stock…under the entrenched Board and Equels, AIM has lost 99% of its stock price value, has not obtained any FDA approvals for Ampligen and has lost approximately $100M…wasting millions upon millions of company funds in their attempt to bully and sue AIM stockholders instead of dedicating resources to company sponsored FDA approved clinical trials for Ampligen… AIM did not engage a new nationally recognized independent compensation consultant, conduct any sort of meaningful review or make any changes…AIM’s incumbent Board would like stockholders to believe that they are on the verge of success and any change in the Board would threaten that success. But the facts tell an entirely different story… AIM has suffered significant net losses totaling approximately $100 million since the incumbent Board took control in 2016. To fund these losses, its excessive Board and management compensation and its self-interested entrenchment efforts as discussed above, AIM has relied on dumping massive amounts of stock into the market through ATM program..In the past two years, AIM’s stockholders have overwhelmingly voted against the company’s executive compensation…Yet AIM made no improvements to its compensation practices….For AIM to have any chance of success, we believe that significant change in the Board is urgently needed…we believe we would bring a wealth of business, financial, clinical trial, life science and governance experience and much needed credibility to the Board.”