Page 19 - Martin Shkreli Case Study

Acquisition: KaloBios

Acquired

On November 18th 2015 Martin Shkreli’s investor group made a 1.2
million share purchase for a 70% stake in KaloBios Pharmaceuticals Inc.
KaloBios, a biopharma company, focused on the development of
cancer-fighting monoclonal antibody therapeutics.

Because so many investors were betting KaloBios was going to go
bankrupt, there was a huge short position in the stock. The purchase by
Shkreli’s group pushed the stock higher, forcing other investors to buy
stock to cover their short positions, thereby pushing the stock even
higher.

Immediately after the acquisition Shkreli was appointed to the positions
of Chief Executive Officer and Chairman of the Board. It was further
announced that David Moradi, Tony Chase and Marek Biestek had also
been elected to the Board of Directors.