AIM ImmunoTech Issues Presentation Detailing Case for Re-Electing Current Directors to Oversee Continued Momentum and Drive Strategy to Create Long-Term Value for Patients and Shareholders

Rhea-AI Summary

AIM ImmunoTech (NYSE American: AIM) has issued a presentation defending its current board members ahead of its 2024 Annual Meeting. The company highlights its clinical development progress, particularly in pancreatic cancer, and ongoing partnerships with AstraZeneca and Merck. The presentation warns against an Activist Group seeking board control, noting their demand for over $5 million in reimbursement for previous litigation costs. The company reveals that despite settlement attempts, the Activist Group demanded up to $8 million, representing over 50% of AIM's market cap. The board urges shareholders to vote for incumbent candidates and reject the Activist Group's proposals.

Positive

• Ongoing clinical trials partnerships with major pharmaceutical companies AstraZeneca and Merck
• Progress in clinical development programs, particularly in high-value pancreatic cancer space
• Building momentum toward commercialization opportunities

Negative

• Potential leadership instability due to activist investor challenge
• Risk of significant cash outflow ($5-8 million) if activist group gains control
• Corporate governance dispute potentially affecting business operations

Insights

Legal Expert

This proxy battle represents a critical governance issue for AIM ImmunoTech. The activist group's demand for $5-8 million in reimbursements, representing over 50% of market cap, raises serious fiduciary concerns. The company's ongoing clinical partnerships with AstraZeneca and Merck could be jeopardized if board control changes hands.

The proposed interim CEO candidate's controversial history at Rockwell Medical, including unauthorized SEC filings and refusal to accept termination, presents material governance risks. The board's settlement offer to include two activist nominees while maintaining strategic continuity appears more aligned with shareholder interests than a complete board overhaul.

Highlights How Positive Data in AIM’s Clinical Pipeline and Big Pharma Partnerships are Positioning the Company for Commercialization Opportunities in High-Value Indications Including Pancreatic Cancer

Warns Shareholders of Its Belief that the Activist Group and Its Nominees Have a Self-Interested Agenda and Could Put AIM’s Clinical Progress at Risk

Urges Shareholders to Safeguard AIM by Voting “FOR” ALL Four of the Board’s Incumbent Candidates and Discarding Any Proxy Materials from the Activist Group

Shareholders Can View and Download the Presentation Here

OCALA, Fla.--(BUSINESS WIRE)-- AIM ImmunoTech Inc. (NYSE American: AIM) (“AIM” or the “Company”) today issued a presentation in connection with its upcoming 2024 Annual Meeting of Stockholders the (“Annual Meeting”), presently scheduled for December 17, 2024.

Highlights of the presentation include the following:

• AIM is executing on its strategy to create long-term value for patients and shareholders by driving clinical development programs in areas with critical unmet needs, especially in the high-value pancreatic cancer space.

• AIM’s clinical pipeline has significant momentum and is laying the groundwork for commercialization opportunities by delivering exciting data across clinical trials, including in two ongoing studies with AstraZeneca and Merck. These commercialization opportunities are what can drive substantial value creation.

• If elected, the Activist Group intends to seek over $5 million from AIM to pay for its previous takeover attempts and litigation against the Company that the Activist Group lost, in addition to any expenses incurred in connection with its solicitation for this year’s Annual Meeting. The Activist Group disclosed that it does not intend to put this personal reimbursement to a shareholder vote.

• Despite AIM’s best attempts at a constructive settlement that would put two of the Activist Group’s nominees on the Board, the Activist Group has continued to insist it receive upwards of $8 million to make all litigants whole in connection with certain litigation as part of any resolution – this represents more than 50% of AIM’s current market capitalization.

• The Activist Group has indicated it would likely appoint Robert Chioini as interim CEO while the Board runs a succession process should its nominees gain control of the Board. Mr. Chioini was fired as CEO of Rockwell Medical in 2018 because of his “sustained mismanagement” of the company and “blatant disregard for shareholder concerns,” according to a Rockwell Medical spokesperson.¹ Following his termination, Mr. Chioini “refuse[d] to accept the decision” and, without authorization, filed a Current Report on Form 8-K on the company’s behalf “making various assertions regarding the five independent directors who voted in favor of Mr. Chioini’s removal.”² This behavior indicates, in our view, that Mr. Chioini is unfit to serve as a public company director – let alone CEO.

AIM encourages shareholders to review its presentation and vote FOR the Board’s incumbent candidates – Stewart L. Appelrouth, Nancy K. Bryan, Thomas K. Equels and Dr. William M. Mitchell – on the WHITE universal proxy card.

For more information on how to vote, visit: www.SafeguardAIM.com.

WE URGE YOU TO COMPLETE, SIGN, DATE AND RETURN THE WHITE UNIVERSAL PROXY CARD AND MAIL IT PROMPTLY IN THE POSTAGE-PAID ENVELOPE PROVIDED, OR VOTE BY INTERNET AS INSTRUCTED ON THE WHITE UNIVERSAL PROXY CARD, WHETHER OR NOT YOU PLAN TO VIRTUALLY ATTEND THE ANNUAL MEETING.

THE BOARD RECOMMENDS A VOTE “FOR” ALL OF OUR BOARD’S CANDIDATES (STEWART L. APPELROUTH, NANCY K. BRYAN, THOMAS K. EQUELS AND DR. WILLIAM M. MITCHELL) ON PROPOSAL 1 USING THE WHITE UNIVERSAL PROXY CARD.

About AIM ImmunoTech Inc.

AIM ImmunoTech Inc. is an immuno-pharma company focused on the research and development of therapeutics to treat multiple types of cancers, immune disorders and viral diseases, including COVID-19. The Company’s lead product is a first-in-class investigational drug called Ampligen^® (rintatolimod), a dsRNA and highly selective TLR3 agonist immuno-modulator with broad spectrum activity in clinical trials for globally important cancers, viral diseases and disorders of the immune system.

For more information, please visit aimimmuno.com and connect with the Company on X, LinkedIn, and Facebook.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the “PSLRA”). Words such as “may,” “will,” “expect,” “plan,” “anticipate,” “continue,” “believe,” “potential,” “upcoming” and other variations thereon and similar expressions (as well as other words or expressions referencing future events or circumstances) are intended to identify forward-looking statements. Many of these forward-looking statements involve a number of risks and uncertainties. Data, pre-clinical success and clinical success seen to date does not guarantee that Ampligen will be approved as a treatment or therapy for any diseases or conditions. The Company urges investors to consider specifically the various risk factors identified in its most recent Annual Report on Form 10-K, and any risk factors or cautionary statements included in any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K, filed with the U.S. Securities and Exchange Commission (the “SEC”). You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Among other things, for those statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the PSLRA. The Company does not undertake to update any of these forward-looking statements to reflect events or circumstances that occur after the date hereof.

Important Additional Information

The Company, its directors and executive officers, Peter W. Rodino, III and Robert Dickey, IV, are deemed to be “participants” (as defined in Section 14(a) of the Securities Exchange Act of 1934, as amended) in the solicitation of proxies from the Company’s stockholders in connection with the Annual Meeting. The Company filed its definitive proxy statement (the “Definitive Proxy Statement”) and a WHITE universal proxy card with the SEC on November 4, 2024 in connection with such solicitation of proxies from the Company’s stockholders. STOCKHOLDERS OF THE COMPANY ARE STRONGLY ENCOURAGED TO READ SUCH DEFINITIVE PROXY STATEMENT, ACCOMPANYING WHITE UNIVERSAL PROXY CARD AND ALL OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY AS THEY CONTAIN IMPORTANT INFORMATION ABOUT THE ANNUAL MEETING. The Definitive Proxy Statement contains information regarding the identity of the participants, and their direct and indirect interests, by security holdings or otherwise, in the Company’s securities and can be found in the section titled “Principal Stockholders” of the Definitive Proxy Statement and available here. Information regarding subsequent changes to their holdings of the Company’s securities can be found in the SEC filings on Forms 3, 4, and 5, which are available on the Company’s website available here or through the SEC’s website at www.sec.gov. Stockholders will be able to obtain the Definitive Proxy Statement, any amendments or supplements thereto and other documents filed by the Company with the SEC at no charge at the SEC’s website at www.sec.gov. Copies will also be available at no charge at the Company’s website at https://aimimmuno.com/sec-filings/.

¹ See Modern Healthcare, Former pharma executives sue over firings (June 18, 2018).
² See Press Release issued by Rockwell Medical on May 24, 2018, available at: https://www.prnewswire.com/news-releases/rockwell-medical-issues-statement-300654699.html.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241125176144/en/

Investor Contact:

JTC Team, LLC

Jenene Thomas

908-824-0775

AIM@jtcir.com



Media Contact:

Longacre Square Partners

Joe Germani / Miller Winston

AIM@longacresquare.com

Source: AIM ImmunoTech Inc.

FAQ

When is AIM ImmunoTech's 2024 Annual Meeting scheduled?

AIM ImmunoTech's 2024 Annual Meeting is scheduled for December 17, 2024.

What are the main clinical partnerships AIM ImmunoTech (AIM) currently has?

AIM ImmunoTech currently has ongoing clinical studies with AstraZeneca and Merck.

How much reimbursement is the Activist Group seeking from AIM?

The Activist Group is seeking over $5 million in reimbursement for previous takeover attempts and litigation costs, with demands reaching up to $8 million in settlement discussions.