UAE Entrepreneurs' Healthcare Investment Firm Aims To Bring Innovative Dialysis Solution To MENA & Far East

Medical Resource Acquisition Group, LLC, (MRAG) an investment firm focused on disruptive technologies in the healthcare space, backed by UAE based entrepreneur Khurram Shroff, is driving an initiative to bring much needed, state of the art, dialysis solutions in the Middle East, China and India. To this effect, MRAG has made an offer of USD 15 million to US based Rockwell Medical Inc. (NASDAQ: RMTI), as an investment to further empower the company’s innovative solutions in the treatment of acute renal conditions, while also suggesting a restructuring of the board. The offer has currently been declined by RMTI as negotiations persist. Significantly, MRAG LLC’s medical advisers, Dr. Dominic Man, Dr. Reinhard Glueck and Mr. Gaurav Gupta are currently playing an active role in the research and development of a vaccine for COVID-19, to arrest and reverse the spread of the contagion across the globe.

Rockwell RMTI’s joint ventures with Wanbang Biopharmaceuticals and Sun Pharma, the second largest Chinese and India’s largest pharmaceutical manufacturers respectively, position the company ideally for expansion into those markets, as well as providing a robust capacity to service growth in the Middle East. Mr. Khurram Shroff believes that Rockwell’s considerable technological expertise and experience in end-stage kidney disease solutions has the potential to generate huge positives in these markets. “The Global Kidney Health Atlas estimates 14.5 million patients will have end-stage kidney disease worldwide, by 2030. The condition is a major healthcare concern in the Middle East, China and India as well. MRAG LLC’s offer of equity funding to RMTI will help in the introduction of appropriate healthcare innovations to these regions, to target current needs and future projections”, Mr. Shroff elaborated.

In addition to the substantial infusion of equity, MRAG LLC also proposes to nominate Mr. Khurram Shroff, Mr. Arthur S. Reynolds and Mr. Markus Müller for election at the Rockwell Medical annual shareholder meeting. MRAG LLC’s proposal to restructure the board of Directors at Rockwell Medical Inc. stems from its belief that the failure to deliver appropriate governance has led to RMTI’s poor stock performance. “Along with our generous offer to fund Rockwell with $15 million, we have filed our slate of three high-quality directors with Rockwell and believe our significant position in Rockwell entitles us to the nominations we requested in our initial offer”, Mr. Shroff clarified. However, MRAG LLC’s offer – which it believes to be in accordance with its status as a ‘stockholder of record’ under the Delaware General Corporation Law – has been contested by the Rockwell board.

Following the response to MRAG LLC’s initial offer, the firm’s lawyers, Loeb & Loeb, have sought further clarification from Rockwell RMTI and restated their position. Mr. Shroff believes that the actions of Rockwell’s management equate to them putting personal interests ahead of fiduciary duties to the company and its shareholders, though he hopes differences can be resolved amicably.