Core Viewpoint - The recent actions of the Board of Opus Genetics, including a highly dilutive financing and a shift in strategic focus, have raised significant concerns regarding governance, stockholder interests, and the overall direction of the company [1][4][31]. Group 1: Board Actions and Governance - The Board executed a highly dilutive financing that added over 13 million new shares just before the record date for the Annual Meeting, effectively sidelining stockholders from decision-making [1][5][11]. - The timing of the financing, which coincided with the record date for the Annual Meeting, raises serious governance concerns as it appears designed to influence the election outcome [12][13][18]. - The Board has previously undertaken major transactions, such as a merger, without stockholder input, leading to questions about transparency and accountability [15][27]. Group 2: Financial Impact and Stockholder Value - The company's outstanding share count nearly doubled from 25 million to 45 million, with expectations of reaching 60 million after the Annual Meeting, resulting in significant dilution for existing stockholders [5][11]. - The stock price has fallen below $1 per share, down from over $6 per share in April 2023, indicating a destruction of value that is uncorrelated with the Nasdaq Biotech Small Cap Index [5][31]. - The recent financing and merger transactions have been criticized for providing minimal valuation to the FDA-approved product RYZUMVI™, despite its long-term potential [1][26]. Group 3: Strategic Direction and Legacy Assets - The company has shifted its focus towards high-risk, early-stage gene therapy programs while sidelining legacy assets like RYZUMVI™, which could generate significant revenue without the same development risks [25][26][28]. - The narrative around legacy asset APX3330 has changed dramatically, raising concerns about the integrity of the company's communications and its commitment to maximizing shareholder value [20][23]. - The strategic pivot towards gene therapy has not been adequately explained, and there is a lack of transparency regarding the rationale behind abandoning de-risked assets [28][29]. Group 4: Future Considerations - The company is urged to consider strategic partnerships and risk-sharing collaborations for its early-stage gene therapy programs to mitigate high-risk development and further dilution [30]. - Stockholders are encouraged to scrutinize the company's governance and capital allocation decisions, as the recent actions have raised important questions about the Board's oversight and commitment to transparency [31][32].
Founder Mina Sooch Issues Open Letter to Opus Genetics Stockholders Following Withdrawal of the Restore Value Slate Amid Dilutive Financing and Governance Concerns