Richmond Brothers Inc.'s David Richmond and Tri-Star Management Inc.'s Mark Ravich filed a preliminary proxy statement related to Rockwell Medical Inc.'s upcoming annual meeting of shareholders.
The activist investors, who collectively own 11.9% of Rockwell's outstanding common stock, asked for the Rockwell shareholders to support their bid as director nominees, with the proxy filing as the latest continuation of an ongoing proxy battle.
In a statement, the activist investors stated that they believe Rockwell's corporate governance enhancements announcement is a result of their involvement and is an apparent attempt to temporarily distract shareholders from the company's "underperformance and corporate governance shortcomings."
Richmond and Ravich also pointed out Rockwell's "terrible" stock price performance, stating that it is driven by "disappointing performance, management inexperience, lack of successful execution, lack of regard for shareholders' best interests, and subpar corporate governance."
The activist investors also criticized the company's "egregious" executive compensation plan, with a possible issuance of over 29 million shares, or more than 56%, of Rockwell's current outstanding shares. This plan, according to them, could potentially lead to an "unacceptable dilution of shareholders."
Richmond and Ravich further argued the need for a public shareholder representative in order to enact "urgent change at the board level."
The company previously filed a lawsuit against the activist investors following the launch of the proxy battle.