AIM ImmunoTech (AIM) Announces Cash Conservation Plan

AIM ImmunoTech Inc. (NYSE American: AIM) (“AIM” or the “Company”) today announced that the Compensation Committee of the Company’s Board of Directors (the “Board”) has established a cash conservation plan (the “Cash Conservation Plan”). The Cash Conservation Plan is a key part of the Board and management team’s efforts to bolster the Company’s ability to maintain its momentum in achieving key clinical milestones in areas with critical unmet needs – which we believe will ultimately create increased shareholder value.

The first steps of the Cash Conservation Plan encompass the following:

• Effective immediately, AIM’s independent directors will receive 100% of their Board compensation in shares of the Company’s common stock. They will not receive any director compensation in cash. In lieu of cash payments, each independent director will receive twice a month stock grants, at a valuation equal to the closing price of AIM shares on the last trading day before such grants are made.

• As previously disclosed, AIM Executive Vice Chairman of the Board, CEO & President Thomas K. Equels and Chief Operating Officer Peter W. Rodino agreed to amend their employment agreements, effective as of September 11, 2024, to reduce the cash portion of their base salaries and receive shares of AIM stock equal to the value of those reductions. The amount of reduced cash compensation is $200,000 for Mr. Equels and $50,000 for Mr. Rodino. Mr. Equels will continue to receive no additional compensation for his Board service. More details are available in the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2024.

Notably, Mr. Equels purchased 361,458 of the Company’s shares between November 2023 and November 2024 (231,458 via the Employee & Director Stock Purchase Plan that allows executives to put cash back into the Company, and 130,000 on the open market, with the most recent purchase being 20,000 shares on November 21, 2024). None of the group of activist investors’ (collectively, the “Activist Group”) nominees appear to have purchased AIM stock in all of 2024.

Dr. William M. Mitchell, Chairman of the Board, stated:

“The Board is unanimous in its strong belief in Ampligen’s significant potential to help patients with unmet lethal medical needs – especially in high value indications – and its ability to thereby deliver enhanced value for all shareholders. By implementing the Cash Conservation Plan, the Board and management are further aligning ourselves with all shareholders and helping to ensure the Company can achieve its full potential.

There is no doubt that many shareholders have endured declines in the value of their investment, but it is imperative to recognize that as a research and development company, our primary way to deliver significant value for all shareholders is to commercialize Ampligen to help the most patients possible. That is why we remain focused on maintaining sufficient runway to advance our clinical pipeline, especially in oncology, which we believe will best position the Company for long-term value creation.”

AIM will continue to share additional components of its Cash Conservation Plan going forward.

***

AIM also encourages shareholders to vote FOR the Board’s incumbent candidates – Stewart L. Appelrouth, Nancy K. Bryan, Thomas K. Equels and Dr. William M. Mitchell – in connection with the upcoming 2024 Annual Meeting of Stockholders (the “Annual Meeting”), presently scheduled for December 17, 2024, on the WHITE universal proxy card.

For more information on how to vote, visit: www.SafeguardAIM.com.

You May Also Be Interested In

• Wells Fargo Upgrades Portland General Electric Company (POR) to Overweight
• Snowflake (SNOW) call put ratio 2 calls to 1 put amid price movement
• Robo.ai names Hao Wang of Changer.ae to its board of directors