Kellner Group Challenges AIM Immunotech Board: Vote for Change

The Kellner Group, a significant stockholder of AIM Immunotech Inc. (NYSE American: AIM), is urging fellow shareholders to vote for their nominees in the upcoming annual meeting. In a recent press release, the group highlighted several concerns about the incumbent board's actions and the company's dire financial situation. This article explores the reasons behind the Kellner Group's call for change and the implications for AIM's future.

AIM Immunotech has faced a severe decline in stock price, plummeting by over 99% since 2016 under the current board's leadership. The Kellner Group attributes this substantial loss to the board's entrenched position and wasteful spending. The group estimates that the board has spent between $15.0 million and $20.0 million in the past two years on entrenchment efforts, including proxy solicitations and litigation against stockholders. This wasteful spending is alarming, especially for a company of AIM's size, as it amounts to nearly the entire market capitalization.

The Delaware Supreme Court's ruling in July 2024 further highlights the incumbent board's breach of fiduciary duties. The court found that the board adopted inequitable bylaws with the primary purpose of interfering with the Kellner Group's nomination notice, rejecting their nominees, and maintaining control. This improper motive and purpose constitute a breach of the duty of loyalty. Additionally, a federal district court in Florida sanctioned AIM and its counsel for pursuing frivolous arguments against the Kellner Group.

The Kellner Group, owning 6.5% of outstanding shares, is fully aligned with AIM stockholders and brings the necessary skills, experience, and credibility to make the company successful. They urge stockholders to vote for their nominees, Ted Kellner, Todd Deutsch, Robert L. Chioini, and Paul W. Sweeney, to bring accountability to the entrenched board and create value for shareholders.
The Kellner Group's challenge to the AIM Immunotech board underscores the importance of stockholder engagement and the need for boards to act in the best interests of their shareholders. The group's concerns about the board's breach of fiduciary duties and wasteful spending highlight the potential risks of entrenched boards. Stockholders should carefully consider the Kellner Group's nomination and vote accordingly to ensure the company's long-term success and value creation.

In conclusion, the Kellner Group's call for change at AIM Immunotech is a wake-up call for stockholders to hold their boards accountable. The board's breach of fiduciary duties, wasteful spending, and severe decline in stock price warrant a serious consideration of the Kellner Group's nominees. Stockholders should vote for change and ensure that AIM Immunotech's board acts in the best interests of the company and its shareholders.