Company: ZVRA
Filing Date: 2025-04-24
Form Type: PRRN14A
Source: 0000897069-25-000871
Chunk: 12

Company: ZEVRA THERAPEUTICS, INC.
Filing Date: 2025-04-24
Form: PRRN14A
Chunk 12
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 presided over the disastrous acquisition of Acer Therapeutics—an ill-conceived transaction that culminated in a failed product launch, staggering dilution of shareholder value, and the assumption of crippling debt. That debt soon required refinancing, further compounding dilution, and triggering a legal action from Commave, a former commercial partner, against the Company. These are not minor missteps—they are cascading failures in governance and fiduciary oversight, resulting in a 40% decline in share price within months of the Acer acquisition, a dilution event that nearly doubled the outstanding share count, and a subsequent lawsuit from Commave that publicly underscored the consequences of these Board-level decisions. Dr. Wendy Dixon, meanwhile, was not elected by the shareholders in a general vote. She was appointed following the initial proxy contest in which the proponents prior nominees won election, and her appointment came only after Dr. Travis Mickle stepped down. This was not an endorsement by the shareholder base—it was a strategic move by a Board attempting to maintain internal control. No Control or Undue Influence Over the Board The Company has intimated that the election of Messrs. Mickle and Reagan will give Mr. Mangless control over the Company’s Board of Directors, or at least undue influence over the Board. This is simply not true. 8 Mr. Mangless believes that no single individual—whether a proponent, nominee, Board member, or member of management—should unilaterally dictate the strategic direction of the Company. Responsible governance requires that all directors, in collaboration with management, exercise independent judgment and fulfill their fiduciary obligations with diligence, transparency, and a commitment to shareholder value. And Mr. Mangless has not sought to control or unduly influence any of his nominees, current or former. If elected, Messrs. Mickle and Reagan will act in their individual capacity as fiduciaries to determine what actions they believe are in the best interests of the Company and its shareholders. As should all of the other directors. Unfortunately, it is evident that several members of the current Board—both legacy holdovers and newly appointed Company nominees—have failed to uphold those duties. These directors have either directly supported or passively enabled a series of reckless decisions that have eroded value, compromised the Company’s credibility, and undermined investor trust. Chief among these failures was the grossly dilutive and strategically flawed acquisition of Acer Therapeutics, followed by the botched launch of Olpruva™. These miscalculations were exacerbated by mismanaged debt refinancing