PetMed Express D/B/A 1-800-PetMeds Releases Further Information Contradicting the Defamatory Anonymous “Report”
August 25 2017 - 9:07AM
PetMed Express, Inc. (NASDAQ:PETS) today issued the following
additional response to Wednesday’s defamatory, anonymous “report”
posted on the Aurelius Value website that casts the Company in a
false light. Tellingly, the website of Aurelius Value fails
to provide any contact information or identify any individuals
responsible for its defamatory content.
President and CEO, Mendo Akdag, stated “I would
again caution fellow shareholders about reacting to the many false
statements made Wednesday, and I assure all parties that the
Company is just as fundamentally strong today as the day before
this self-serving attack by an acknowledged short seller who admits
seeking to profit from a price decline in the Company’s common
stock.”
By presenting information in a false and
misleading fashion, Aurelius Value sought to manipulate the
Company’s common stock value.
For the record and contrary to Aurelius Value’s
anonymous “report”:
Sales of Tramadol and Gabapentin have not been
driving the Company’s growth. To the contrary, sales of the
two prescription medications accounted for only approximately
four-tenths of 1 percent (0.4 %) of the Company’s total sales for
the six-month period ending June 30, 2017. And over the last
five years, the Company’s sales of the two medications have
actually declined.
Instead, the “new generation medications” that
have fueled the Company’s growth include new generation flea, tick,
and heartworm control products.
While the Company dispenses Tramadol and
Gabapentin it is done exclusively pursuant to valid prescriptions
from licensed veterinarians for the treatment of animals
only. The Company was unaware that certain non-pet related
search terms entered by consumers would yield results for our
products. Nor did the company take any steps to market to
individuals who suffer from opioid addiction. The Company did not,
as suggested in the Aurelius Value “report,” target any of the
referenced consumer search terms.
In sum, the Company believes that this anonymous
“report” was disseminated to manipulate the Company’s stock price
to benefit opportunistic short sellers. PetMed Express, Inc.
categorically denies the “report’s” allegations and its
implications. We have reported this manipulation to appropriate
regulators. PetMed Express, Inc. will defend itself vigorously
against these false allegations, and is also reviewing all legal
options at its disposal to hold the author(s) of this “report”
responsible for their baseless attack. Shareholders are cautioned
against reacting to the “report’s” false statements and
implications. We stand behind the integrity of the Company’s
business practices.
Founded in 1996, PetMed Express, Inc. is
America’s Largest Pet Pharmacy, delivering prescription and
non-prescription pet medications and other health products for dogs
and cats at competitive prices direct to the consumer through its
1-800-PetMeds toll free number and on the Internet through its
website at www.1800petmeds.com.
This press release may contain “forward-looking”
statements, as defined in the Private Securities Litigation Reform
Act of 1995 or by the Securities and Exchange Commission, that
involve a number of risks and uncertainties, including the
Company’s ability to meet the objectives included in its business
plan. Important factors that could cause results to differ
materially from those indicated by such “forward-looking”
statements are set forth in Management’s Discussion and Analysis of
Financial Condition and Results of Operations in the PetMed Express
Annual Report on Form 10-K for the year ended March 31, 2017.
The Company’s future results may also be impacted by other risk
factors listed from time to time in its SEC filings, including, but
not limited to, the Company's Form 10-Q and its Annual Report on
Form 10-K.
For investment relations contact PetMed Express, Inc., Bruce S. Rosenbloom, CFO, 561-526-4444.
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