Shares of Enzo Biochem (NYSE:ENZ) pushed higher Wednesday in the wake of a Seeking Alpha report that its activist shareholder Roumell Asset Management has raised its stake in the biotech company to 4% and is demanding a review of its strategic options.
In response to the news, investors sent Enzo shares up 5.6% to $2.70 in afternoon trade.
As of the close of last year, Roumell had a stake of about 2.3% in the company, according to Seeking Alpha.
In a letter to Enzo’s board, Roumell took the company to task for its share price decline since the start of last year and pushed for its acquisition. “The stock price has declined by nearly 70% since the beginning of 2018. In fact, Enzo’s stock trades below where it traded 20 years ago,” Roumell wrote, according to Seeking Alpha.
“We believe the time has come for the Board to recognize that the company is too small to be successful on its own. We believe it’s likely that the company’s enviable product and IP portfolio would be better suited in a larger company’s hands, where Enzo’s promising AmpiProbe platform can go to market more efficiently and quickly,” Roumell added.
Jim Roumell of Roumell Asset Asset Management was not immediately available for comment. An Enzo representative, meanwhile, declined to comment.
Contact Ellen Kelleher at [email protected] --