Benevolent AI's largest shareholder seeks governance shake-up in the company he founded

2024-04-02

IPO

LONDON, April 2, 2024 /PRNewswire/ -- The following is a text of a letter sent to Benovelent AI's Chairman, Dr. François Nader, by the Company's founder and largest shareholder, Kenneth Mulvany.

Mr. Mulvany is publishing the letter to formally declare his intention to nominate a slate of new director candidates and remove some or all existing Directors with the aim to strengthen governance and accountability, invigorate the Company's business development, sharpen its strategic focus, offer clear market communication and rebuild confidence among investors and stakeholders.

Dr. François Nader

Chairman

BenevolentAI S.A.

9, rue de Bitbourg

L - 1273 Luxembourg

(By email)

28 March 2024

Dear François,

NOTIFICATION OF SHAREHOLDER INTENTION

As the Founder and largest shareholder of BenevolentAI, (the "Company") I have been in regular formal correspondence with the Board over a long period of time to raise issues that I believe have significantly constrained the ability of the business to progress. Specifically, I have raised serious concerns about the Company's cost management, business development resourcing, strategy, investor relations and governance.

Reasons for the Shareholder Intention

Our Company has achieved milestones that underscore the transformative potential of artificial intelligence in patient care, notably; identifying a drug treatment in one of the fastest FDA approvals, our successful clinical trial results which was announced just this week, our rich pipeline of drug candidate programmes and our strong partnerships with Merck and AstraZeneca. These milestones affirm the Company's mission and demonstrate capabilities that engender confidence in an exciting future. Yet, this remarkable progress has not translated into the growth shareholders envisioned.

Since its relatively recent IPO, the Company's valuation has diminished by over €1.2 billion – a decline of over 90%. No shareholder can be indifferent to this profoundly disappointing result.

Action to be taken and

the path to stability and growth

Through this letter, I am formally declaring my intention to nominate a slate of director candidates that aim to strengthen governance and accountability, invigorate the Company's business development, sharpen its strategic focus, offer clear market communication, and rebuild confidence among our investors and stakeholders.

This declaration paves the way for me to seek the support of our shareholders at the forthcoming Annual General Meeting, (the "AGM") for Board reform.

The goal for BenevolentAI under this revitalised Board is simple yet ambitious: to elevate patient care through relentless innovation and sustained growth. This is how we will fulfil our commitments to stakeholders and more accurately reflect the aspirations of our shareholders.

Further, with the support of our shareholders, I am prepared to take on a director role. I will be focusing the Board's efforts to prioritise stringent cost management and revenue growth, along with expanding strategic partnerships. My qualifications to take on this role include my experience as a pioneer in AI and its application to drug discovery and development, my successful business track record in private and public companies and my long-standing commitment to the Company.

Conclusion

In the spirit of BenevolentAI's company motto, "Because It Matters," we stand at a defining moment that demands more than just recognition—it calls for decisive action from its owners. It is with a clear vision for the transformative potential of BenevolentAI that I will seek shareholder support at the upcoming AGM. We are at the helm of an enterprise that has the potential to create breakthroughs in AI-driven drug discovery and development that become cornerstones of patient care. Let us unite in this endeavour, because it matters—to patients, to our shareholders, and the legacy we aspire to build.

Yours sincerely,

Kenneth Mulvany