Issues Open Letter to Chairman Outlining the Case for Change
Expresses Concern with Alcobra’s Prolonged Underperformance, Capital Allocation, Board Oversight and Corporate Governance
Nominates Six Highly Qualified Directors to Replace Entire Board
RAMAT-GAN, Israel, March 16, 2017 /PRNewswire/ — Brosh Capital L.P., and certain of their affiliates (collectively, “Brosh”), a large stockholder of Alcobra Ltd. (NASDAQ: ADHD) (“Alcobra”), with beneficial ownership of approximately 9.4% of Alcobra’s outstanding shares, has announced that it has delivered an open letter to Howard B. Rosen, the Chairman of the Board of Directors of Alcobra (the “Board”). Brosh also announced that it has delivered to Alcobra a request to hold an Extraordinary General Meeting of Shareholders in order to remove the existing Board in full, and nominate its six highly-qualified directors.
The full text of the letter is as follows:
March 16, 2017
Alcobra Ltd.
Azrieli Triangle Building
132 Derech Menachem Begin 39th Floor
Tel Aviv 6701101 Israel
Attn: Howard B. Rosen, Chairman of the Board of Directors
Dear Mr. Rosen,
Brosh Capital L.P., together with its affiliates (collectively, “Brosh”), are the beneficial owners of approximately 9.4% of the outstanding shares of Alcobra Ltd. (“Alcobra” or the “Company”), making us the Company’s second largest shareholder. However, our significant stake in Alcobra should not be mistaken as a vote of confidence in the Company’s management and its Board of Directors (the “Board”). On the contrary, it is our view that your record in management, expense controls, and corporate governance is amongst the most egregious we have witnessed in our investment career. Instead of representing the interests of your fiduciaries, the shareholders, we fear that the current Board represents only the narrow and profligate interests of management.