The meeting this morning was contentious, though mostly civil. CEO presented information that was a slight expansion of the information presented on the analysts' call. Bascially, ECOR is 'staying the course', with reductions in spending. No forward guidance, with clear unwillingness to provide specific financial information. Could not get a straight answer to the question, "what revenues are needed for breakeven profitability & cash flow?" CEO believes in PBM strategy, finds flaws in alternatives.
Almost all shareholders & pros at the meeting did not buy CEO's story or strategy. Several people asked board & CEO to resign, stating the PBM-oriented strategy was a good idea but failed, and now a true pivot is needed. Need a 'medical device strategy', and a board & management team that has small company & medical devoice experience. Multiple large stake investors asked why board & management has little out-of-pocket cash investment in the company. Analysts said that company has $40M in cash, and needs understand that capital markets are now closed to ECOR & this board + management, so a real pivot in stratgey & execution is needed to avoid bankruptsy. Maybe the PBM strategy will eventuaklly work, but not in time to save company. D&O liability for possible company failure was brought up several times.
Managemnt & board seems to be defending the past, while shareholders are asking for a different future, as a medical device.
Not an easy shareholders meeting.
