Rockwell Medical Inc (NASDAQ: RMTI) is having an overwhelmingly rough start in the pre-market hours this morning after the company released a letter to shareholders announcing the termination of the CEO of the company as well as other members of management. Of course, the news led to concerns among investors, sending the stock spiraling toward the bottom. Today, we’ll talk about:
- The management shakeup we’re seeing at RMTI;
- what we’re seeing from the stock;
- and what we’ll be watching for ahead.
RMTI Provides Letter To Shareholders
As mentioned above Rockwell Medical is having an overwhelmingly rough start to the trading session this morning after issuing a letter to shareholders. In the letter, the company announced that Robert Chioini, President and CEO of the company, has been terminated by the Board of Directors. Also, it was announced that the Board at RMTI created a Special Transition Committee that’s comprised of three independent directors. This committee will provide board-level oversight over the company’s strategic direction and day-to-day operations until a new, permanent CEO is in place.
The news comes after a review of the business, including evaluation of management by the newly augmented Board of Directors. The review came to the conclusion that Mr. Chioini lacked key attributes that are necessary when it comes to the oversight of growth and long-term success of the company.
In the release, RMTI also announced that Mr. Tomas Klema, Vice President, Chief Financial Officer, Treasurer and Secretary of the company would see his employment terminated as well. This is the result of the unauthorized filing of the 8-K. In the report, various assertions regarding the five independent directors who voted in favor of the removal of Mr. Chioini were made.
Finally, the company announced that as a result of the behavior of Mr. Chioini, as well as actions that followed his termination, the company has filed a verified complaint in the Oakland County Circuit Court of Michigan. The complaint seeks declaratory relief as well as a temporary restraining order that would enjoin Mr. Chioini from certain actions with respect to the company.
What We’re Seeing From The Stock
With the concerns surrounding the management at Rockwell Medical, it only makes sense that investors are concerned with the future of the company. Of course, when investors are concerned, we tend to see declines in the value of the stock that represents the company, and that’s exactly what we’re seeing today. As is almost always the case, our partners at Trade Ideas were the first to alert us to the declines. Currently (9:05), RMTI is trading at $5.00 per share after a loss of $0.94 per share or 15.82% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on RMTI. In particular, we’re interested in following the movements made by the company following the management shakeup. We’ll also be following the multiple class action suits that have been advertised in Yahoo! Finance following the news that the CEO of the company and his right hand man have been fired. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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