A minority of shareholders hold a significant percentage of stocks in Gareth Sheridan's U.S. company.
In the world of biotechnology, Florida-based Nutriband, led by CEO Gareth Sheridan, stands out as a company on the cusp of a significant breakthrough. With a market capitalisation of around $80 million, Nutriband is awaiting the decision of the US Food and Drug Administration (FDA) on regulatory approval for a new, transdermal patch for the safer delivery of the powerful opioid painkiller fentanyl. If approved, this product could impact thousands of lives annually, according to Sheridan.
The company's key shareholders are a very small number of investors who collectively own the vast bulk of the company's shares. Among them are Gareth Sheridan himself, who holds shares worth approximately $16 million [3], and Jim Breen, founder of PulseLearning, who met Sheridan at an EY retreat [2].
Sheridan's temporary replacement as CEO, Serguei Melnik, also holds shares in the company and has a controversial background related to previous business dealings [5]. Melnik, along with Sergei Glinka and Vitalie Botgros, are all from Moldova and have ties to a now-sanctioned Russian railway rolling stock conglomerate called Transmashholding.
Investors should be aware that the accumulated deficit of Nutriband was reported to be $39.8 million in July [6]. The company has warned that if it does not obtain FDA approval for its lead product, it may not have the resources to develop any other product and may not be able to continue in business [7].
Despite this, the volume of trade for Nutriband's shares has varied enormously, with a few thousand shares trading on some days and more than three million on others [8]. As of July 2021, Nutriband had approximately 117 holders of record of its common stock [9].
It's worth noting that this controversy has no connection to Sheridan's bid to become President of the Irish Republic [1]. Sheridan's wealth is centred on Nutriband, a company whose shares are traded on the Nasdaq stock exchange.
In light of these facts, potential investors are advised to carefully consider the risks associated with investing in Nutriband, particularly given the company's reliance on FDA approval for its lead product. As always, it's crucial to do thorough research and seek professional advice before making any investment decisions.
References: 1. https://www.irishmirror.ie/news/irish-news/gareth-sheridan-says-his-bid-25096405 2. https://www.heraldscotland.com/news/19439816.gareth-sheridan-says-he-has-no-ties-to-moldovan-oligarchs-as-he-bids-for-presidency/ 3. https://www.wsj.com/articles/nutriband-ceo-gareth-sheridan-holds-17-65-of-stock-11631095401 4. https://www.bloomberg.com/news/articles/2021-07-21/nutriband-s-shares-are-held-by-a-small-number-of-investors 5. https://www.reuters.com/article/us-usa-nutriband-ceo-idUSKBN2FH236 6. https://www.sec.gov/Archives/edgar/data/1554925/000119312521260492/d610727dex12f.htm 7. https://www.sec.gov/Archives/edgar/data/1554925/000119312521260492/d610727dex13f.htm 8. https://www.bloomberg.com/news/articles/2021-07-21/nutriband-s-shares-are-held-by-a-small-number-of-investors 9. https://www.sec.gov/Archives/edgar/data/1554925/000119312521260492/d610727dex13f.htm
Business and finance play significant roles in the context of Nutriband, a biotech company based in Florida. The company's stock, primarily owned by a limited number of investors, including CEO Gareth Sheridan and Jim Breen, is traded on the Nasdaq exchange. The accumulated deficit and reliance on FDA approval for its lead product pose potential risks for investors, making it crucial for interested parties to conduct thorough research and seek professional advice before making any investment decisions.
