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MiMedx Group (MDXG) crashes after news of a 5 year restatement and CFO departs

June 7, 2018 9:59am

MDXG is a moving downside of -$1.29 or approximately -15.35% to $6.92

After a previous close of $8.32 and an opening bid of $5.88

Interesting “stat”: In 2017, the average restatement covered 509 days, the lowest value since 2009, according to Audit Analytics. MDXG’s restatement will cover nearly 2,099 days or roughly four times the average <WSJ>.

MDXG has plummeted 36% toward a four-year low in active premarket trade Thursday, to pace all the decliners before the open, after aid it would have to restate results for the last five years and said its chief financial officer left the company.

MDXG had previously announced that it was investigating accounting treatment of certain sales and distribution practices.

MDXG has concluded that it will restate results for years ended 2012, 2013, 2014, 2015 and 2016, and the results of the first three quarters of 2017. MiMedx said it was withdrawing all prior financial guidance.

John E. Cranston has also left his role as VP, corporate controller and treasurer.
CFO Michael Senken has left the company, effective Wednesday, after 8 1/2-years in the role.

Edward Borkowski was appointed interim CFO, effective immediately, until a permanent replacement is found,

Is there an accounting issue within this sector Osiris (OSIR), MDXG, Organogenesis and will Vericel (VCEL) also feel the “pinch”?

35 companies, 1 interpreter!

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