Late stage biotech firm CytoDyn Inc (OTCMKTS:CYDY) was in the middle of a heavy selloff yesterday in the markets and saw its stock slump by as much as 9%. The selloff in the stock was possibly triggered by an announcement from CytoDyn with regards to the director nominations that had been submitted by an activist investor group.
The company announced that the nominations from the activist investors group, headed by Bruce Patterson and Paul Rosenbaum, were invalid. The presence of an activist investors can often lead to uncertainties among investors and the latest announcement seems to have not gone down particularly well with investors.
In this regard, it is also necessary to note that the activist investor group had sent in the names of as many as five new directors who were supposed to be inducted into the company’s board of directors. It should be noted that the CytoDyn board consists of only 6 members.
The submission from the activist investors was invalidated by the company for not being compliant with the advance notice bylaw. However, it is likely that Patterson and Rosenbaum are going to attempt to make a similar attempt again.