8/21/2036

Kaos Capital Demands Board Overhaul at Capricor Ahead of FDA Decision on DMD Therapy

BigGo Finance (08/21/36)

Capricor Therapeutics Inc. (CAPR) is facing an activist campaign from shareholder Kaos Capital, which is demanding immediate board changes, a cash-preservation plan, and the creation of an M&A committee just one day before the U.S. Food and Drug Administration (FDA) is scheduled to act on the company's experimental Duchenne muscular dystrophy therapy. Kaos Capital, a Miami-based investment firm that describes itself as a "significant and growing shareholder," issued a letter to fellow shareholders on August 21 calling for a meeting with the board within 15 business days. The firm said it intends to nominate two independent directors and push for a board-led M&A and Strategic Alternatives Committee chaired by a shareholder-backed director. The activist campaign lands at a precarious moment for Capricor. The FDA's action date on deramiocel, the company's cell therapy for DMD-related cardiomyopathy, is August 22. In June, an FDA advisory panel voted 9-3 against the drug's use for that indication, casting significant doubt over its approval prospects. Capricor shares were down approximately 2% at the time of the letter's release. In the letter signed by CEO Adam Arviv, Kaos argued that Capricor has become overly dependent on a single regulatory outcome and must take immediate steps to preserve capital while exploring acquisitions, licensing deals, and partnerships that could broaden its pipeline. The company reported $237.9 million in cash, cash equivalents, and marketable securities as of June 30, down roughly $80.2 million from year-end 2025. First-half 2026 operating expenses totaled $79.7 million, including $23.5 million in general and administrative costs — approximately double the comparable 2025 figure, according to the letter. Kaos called for a formal Cash Preservation Plan that would include: a near-term freeze on nonessential spending; a zero-based review of G&A expenses; enhanced approval requirements for material commitments; and quarterly reporting on cost reductions, cash runway, and capital use. The firm also urged the board to retain independent legal advisers and commission a review of oversight, disclosure controls, contracting, compensation, and capital-allocation processes. Kaos cited "numerous legal matters and shareholder demands" disclosed in Capricor's public filings, including securities and derivative actions, a Section 220 books-and-records demand, a patent action, a distribution dispute, and employment-related claims. A further securities class action was filed against the company and certain officers in 2026. "This legal overhang carries cost, distraction, reputational risk, and governance consequences," the letter stated. Kaos emphasized it is not asking Capricor to abandon deramiocel, which it believes "may still have meaningful value for patients." Instead, the firm wants the company to use its cash and public-company platform to build a broader, multi-modality biotechnology enterprise. The proposed M&A committee should evaluate assets in inflammation, fibrosis, tissue repair, targeted delivery, and regenerative medicine, the letter said. Kaos specifically pointed to advanced small-molecule pharmacology targeting the NLRP3/inflammasome signaling pathway as one area of interest. "Conviction in a lead program is not a license for a Board to concentrate all of a public company's capital, risk, and future in a single regulatory outcome," Arviv wrote. The activist push comes as Capricor awaits the FDA's decision on deramiocel. The agency's action date is August 22, though the timeline has grown complicated. After the advisory committee's negative vote in June, Capricor said the FDA was willing to review an amendment containing 24-month Hope-3 data focused on upper-limb function. A new target date has not been formally announced. Roth Capital expects the FDA review could be extended by approximately three months to accommodate the additional data. Kaos said it is prepared to work constructively with the board but warned of escalation if its demands are not met. If the board does not confirm and convene the requested meeting within the specified timeframe, Kaos said it will begin seeking shareholder support to elect its two independent nominees, replace directors, and potentially pursue removal of senior management. "We do not take that step lightly, but continued inaction would leave shareholders no reasonable alternative," the letter read.

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10/22/2026

Nidec Poses New-Old Test for Japanese Buyouts

Reuters Breakingviews (10/22/26) Lockett, Hudson

Nidec (TYO: 6594), Japan’s $16 billion precision-motor maker, is facing a major accounting crisis that could lead to its delisting from the Tokyo Stock Exchange, potentially creating an opportunity for private-equity investors. New CEO Michio Kaida said the company is still seeking auditor PwC’s approval for delayed financial results after recognizing about ¥1.1 trillion ($7 billion) in write-downs, including roughly ¥480 billion linked to accounting irregularities. Nidec must resolve its financial reporting issues by October 28 to avoid a forced delisting, while its shares have fallen sharply. The crisis is reminiscent of Toshiba, which following a 2015 accounting scandal became a high-profile option for hedge funds and investors including Elliott Management and Third Point. Nidec has also attracted investor interest, with Oasis Management building an almost 8% stake. Buyout firms such as Bain and KKR (NYSE: KKR) have the financial resources and restructuring expertise to pursue a takeover, but several obstacles could complicate a deal. Japanese authorities may consider some of Nidec’s more than 350 subsidiaries strategically important, while foreign investors could face resistance because of the company’s importance to Japan’s export economy. The experience of Toshiba, which ultimately went to a domestic consortium after foreign bidders faced concerns about strategic ownership, illustrates the potential difficulties. A successful Nidec transaction could therefore become an important test of Japan’s evolving corporate-governance and M&A environment.

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10/21/2026

Anson Funds’ Sagar Gupta Launches Dedicated Fund

Bloomberg (10/21/26) Sun, Mengqi

Anson Funds portfolio manager Sagar Gupta is preparing to launch a fund called Anson Vira in early 2027 aimed at small and mid-cap companies. The new fund will be seeded by Anson, which will commit $200 million to the strategy, and the fund has started to attract outside capital as well. Anson Vira will focus on investing in small and mid-cap technology, media and telecom companies valued at $1 billion to $10 billion in North America. It will have five to eight positions at a time and emphasize AI adoption at portfolio companies to boost returns. “Small caps are super cheap relative to large caps and the problem is you cannot just get into a small-cap stock and expect the market to wake up and realize the value,” Gupta said on Bloomberg TV. “You have to create it yourself, so this is why I think activism is very much needed in the small-cap space, because the returns have not been there.” Gupta, 38, with almost a decade of investing experience, has led the investing strategy at Anson since 2023, investing out of the flagship fund. Earlier in his career, the Los Angeles-based investor worked at Legion Partners for nearly six years, according to his LinkedIn profile. The new fund will also push portfolio companies to use artificial intelligence, which, according to Gupta, some chief executives have been too slow to implement widely enough. “There is a huge opportunity to drive value creation by pushing our companies to adopt AI, to grow faster and be more efficient, and be able to structurally rerate these stocks” in public markets, he said. Campaigns led by Gupta have included Twilio Inc. (NYSE: TWLO), Clear Channel Outdoor Holdings Inc. (NYSE: CCO), Globalstar Inc. (NASDAQ: GSAT), Lionsgate Studios Corp. (NYSE: LION), Match Group Inc. (NASDAQ: MTCH), and SPS Commerce Inc. (NASDAQ: SPSC). Clear Channel Outdoor and Globalstar both ended up selling themselves. Gupta also sits on the board of Five9 Inc. (NASDAQ: FIVN) after reaching a settlement with the company in 2024. Anson's activism strategy has produced 30% plus annualized returns since launching in 2023 and has gained more than 30% so far this year, people familiar with the matter said. It's been a while since a new fund focused on activism has been launched. Former Jana Partners executive Charlie Penner and Alex Silver, a former partner at P2 Capital Partners, founded Ananym Capital Management in 2024. The fund on Tuesday said it has taken a position in the European ticketing platform CTS Eventim AG (EVD.DE), betting that more people will go offline and head to live events, Bloomberg News reported. Elliott Investment Management veteran Adam Katz in 2021 founded Irenic Capital Management with Andy Dodge from Indaba Capital Management. That fund has launched a few high-profile campaigns since its start, including a recent one at UK self-storage firm Big Yellow Group Plc (LON: BYG) and at social media company Snap Inc. (NYSE: SNAP). Former Elliott executive James Smith in 2021 launched Palliser Capital in London. Smith said last week Samsung Electronics Co. (KRX: 005930) should list shares in the United States and use the proceeds to buy back preferred stock, saying the company should do more to narrow the discount on those securities, which carry no voting rights.

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10/20/2026

Financial Firm Supports Investor Group in Ethan Allen Proxy Fight

Woodworking Network (10/20/26) Adams, Larry

Independent proxy advisory firm Egan-Jones Proxy Services has recommended Ethan Allen (NYSE: ETD) shareholders vote for all five director nominees proposed by Doug Bergeron and withhold votes from all incumbent directors at the company’s annual meeting on Nov. 4, according to a press release statement. The slate of candidates for Ethan Allen's board is Douglas G. Bergeron, Anna Brockway, Kristine E. Miller, Steve Oblak, and Stefanie Tsen Ward. Ethan Allen Interiors Inc., which had annual sales of $359.1 million, ranks #39 in the FDMC 300 listing of top wood products manufacturers. In commenting on the strength of Bergeron's nominees and their plan to restore growth, Egan-Jones noted, “The DGB slate is highly qualified and was built to fill the exact gaps the incumbent Board lacks: modern retail, home furnishings, digital commerce, and brand revitalization. Two nominees helped build major home furnishings businesses, and the others have led turnarounds, luxury retail and digital strategy at scale.” Egan-Jones said that they made the decision based on declining revenue, with falling revenue driving declining earnings and shrinking the cash balance. The firm noted that management has described the same problems and fixes for over a decade, including reaching younger customers, modernizing the brand, and building a digital business, but results have not followed." “The four independent directors joined between 2015 and 2022, so the Board has changed in name. In substance it has not: each has overseen Ethan Allen trailing the small-cap market since joining, and together they have preserved the same leadership, strategy and pay framework.”

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10/20/2026

Vail Says Park City Billionaire Is Influencing Oasis Board Bid

KPCW (10/20/26) Weller, Kristine

Vail Resorts (NYSE: MTN) accused its stockholder, Oasis Management, of working with Park City billionaire and Cloudflare (NYSE: NET) CEO Matthew Prince in an Oct. 19 U.S. Security and Exchange Commission filing. Oasis is a Hong Kong-based hedge fund that now owns 9.6% of Vail common stock. In September, the investor launched a proxy fight against Vail. That’s when a shareholder tries to replace existing board members and influence a business’s strategy. Oasis filed a preliminary proxy statement Oct. 19, reiterating its belief a reconstituted board would make Vail more profitable. The fund recommended four people to Vail’s board, including Utah venture capitalist Bryce Roberts and two-time Olympian and Park City resident Picabo Street. Now, Vail says Prince introduced Street and Roberts to Oasis one week before their nominations, “raising questions regarding potential conflicts of interest.” The resort company said Prince may have recommended the two Utahns as they could help him buy Park City Mountain. As KPCW first reported, Prince said he wanted to buy the Vail-owned resort in 2025, then doubled down on that desire in August. In an email Tuesday, Prince told KPCW he sent around 12 names to Oasis, including Street and Roberts. He said, “any of them would have brought an improvement to Vail's current board,” but he “had no influence over who Oasis decided to move forward with.” “I thought Bryce would be great because of his deep understanding of technology and innovation. And Picabo for her recognition of the love and magic of skiing, both of which Vail has forgotten or lost,” Prince said. “I've not discussed my plans to acquire Park City Mountain with either Bryce or Picabo beyond at the most cursory level.” According to Vail, board interviews with Street and Roberts only added to concerns. The company said, “Neither candidate demonstrated basic knowledge about the Company's services, products, and strategic initiatives … causing the Board to question the level of rigor and commitment.” Vail said a competitor's president and chief operating officer also introduced Roberts to Oasis, raising further questions about conflicts of interest. The resort company had similar reservations regarding Oasis' other nominees: former Disney CEO Robert Chapek of Florida and Florida-based financier M. Ashton Hudson. While Vail acknowledged Chapek is the only Oasis nominee with relevant industry experience, the board was concerned about the circumstances of his termination from Disney in 2022. The board also said Hudson could not articulate how his entrepreneurial experience would support Vail. In a letter to shareholders, Vail CEO Robert Katz said the board does not endorse any Oasis board nominees or Gregory S. Meyer, who nominated himself. Katz said despite the challenging 2025-2026 winter, revenue declined just 3.5% for the year. He said new passes and pricing strategies across its 42 resorts have shown positive results: the company had record guest satisfaction scores last year and is outperforming its competitors. One member of Vail's 10-member board is not standing for reelection. Vail recommends capping the board at nine and is asking shareholders to re-elect all current members before the company's annual meeting. A meeting date has not been announced, but is usually in early December.

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