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Rubric Capital reports 8.51% stake in Chimerix, suggests liquidation
The Fly

Rubric Capital reports 8.51% stake in Chimerix, suggests liquidation

According to a regulatory filing, Rubric Capital disclosed an 8.51% stake in Chimerix, representing 7.5M common shares. In the filing, which allows for activism, Rubric Capital included a letter to the board of Chimerix saying it believes the company should begin a winddown process and commence a strategic alternatives process. "Chimerix is on the wrong path and is being frivolous with shareholder value," the letter reads. "Continuing to invest in ONC201 despite the likely need for an expensive phase 3 trial is not an appropriate course of action for a company of this size and with such an onerous cost of capital. Considering this, we believe the Board must simultaneously begin a winddown process to maximize liquidation value available to shareholders and commence a strategic alternatives process for ONC201. The market appears to agree with us, as simply liquidating the Company would result in a return of up to 125% from the close on Tuesday, November 8th. Beyond the share price, shareholders have clearly demonstrated their dissatisfaction via the most recent annual meeting. Despite there being no alternative slate, no board nominee received a majority vote of the shares outstanding. One candidate only received 29% of the votes cast. Clearly shareholders are dissatisfied."

Published first on TheFly

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