Three directors booted at Adamis Pharma


Adamis Pharmaceuticals (ADMP -2.5%) CEO Dennis Carlo sends a letter to directors Craig Johnson, Kenneth Cohen and Tina Nova requesting their respective resignations from the BOD. All comply.

Replacing them as non-employee independent members are Richard C. Williams, Robert B. Rothermel and William C. Denby, III. Mr. Williams was also appointed Chairman of the Board.

Comments (10)
  • jgrizz48@gmail.com
    , contributor
    Comments (13) | Send Message
     
    it just might be what that company needs ...fresh blood
    26 Aug 2014, 11:17 AM Reply Like
  • James W. Burke
    , contributor
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    Like the move. CEO gave them the boot and the 3 new BODs have some great credentials. I bet they do some buying here.
    26 Aug 2014, 11:36 AM Reply Like
  • salvatort
    , contributor
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    I don't get it. I have no opinion on the company, but if the CEO replaces Directors, instead of Directors choosing the CEO, something sounds really wrong...
    26 Aug 2014, 11:44 AM Reply Like
  • James W. Burke
    , contributor
    Comments (202) | Send Message
     
    The company recently had a significant private financing by a very reputable Michael Castor of SIO Capital. Perhaps he requested changes be made. The 3 booted BODs had been there many years and I don't recall any of them buying any stock in the open market. If the CEO and a few large shareholders have the votes to replace them come proxy time, not much they can do about it.
    26 Aug 2014, 12:06 PM Reply Like
  • salvatort
    , contributor
    Comments (421) | Send Message
     
    If that is the case, then essentially the shareholders took action. In the article, it appears that the CEO-under his management capacity-made this decision, something that would definitely be bad. To be honest, even the filings portray the same picture... There is no mention to a large shareholder etc.
    26 Aug 2014, 12:25 PM Reply Like
  • ControlledRisk
    , contributor
    Comments (343) | Send Message
     
    This is pretty interesting. The letter from the 3 directors doesn't make it sound like they were very happy about this.

     

    Regarding the CEO booting board members, I think its pretty common for the board to be sought out by the CEO and for them to be friendly toward him. Unless pushed by an activist investor, I don't think boards do much unless the CEO gets so crazy or so bad they absolutely have to do something.
    26 Aug 2014, 03:17 PM Reply Like
  • ashakil
    , contributor
    Comment (1) | Send Message
     
    I know couple of folks wrote pretty sad emails to them, including me how i lost 60% of my portfolio due to their lack of communication & share holder concerns. I jumped out of it, but I honestly think CEO is the one who should be booted out.
    26 Aug 2014, 06:25 PM Reply Like
  • James W. Burke
    , contributor
    Comments (202) | Send Message
     
    60% loss? Assuming you bought post-reverse split, that means you bought on the day it hit its high (above 7) and sold on the day it hit its low (60% loss from 7 would be 2.80 share price). That's pretty poor luck. And how is a 60% loss in your portfolio based on your decision to buy and sell ADMP management's fault? My guess is a lot of people on SA bought based on Joe Springer's PRO article recommendation, and I suspect they would buy again if he were to go positive on it again. Good general rule is to cap speculative plays like ADMP to 10% max of your portfolio.
    26 Aug 2014, 09:25 PM Reply Like
  • jgrizz48@gmail.com
    , contributor
    Comments (13) | Send Message
     
    trust.. that they don't terminate 3 BOD all in the same day or week without some strategy behind what there doing...would it be far fetched to say maybe the current CEO is on borrowed time also?
    27 Aug 2014, 08:21 AM Reply Like
  • ControlledRisk
    , contributor
    Comments (343) | Send Message
     
    My guess is that this was a difference of opinion on the direction of the company. Execs disagree all the time, and move around based on who they work well with. I would also guess the CEO is plenty safe. Board members wouldn't give in to leaving just because, especially given their letter response. Carlo must have had the support of the other board members and/or major shareholders to have pulled this off.
    27 Aug 2014, 01:28 PM Reply Like
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