CymaBay: JFL Supports Engine Capital's Proposals

AUSTIN, Texas, March 2, 2020 /PRNewswire/ --  The following is a letter from JFL Capital Management, LLC regarding the support of Engine Capital's proposals. JFL Capital Management, LLC, ("JFL" or "we"), is a significant shareholder of CymaBay Therapeutics, Inc. ("CymaBay," "CBAY" or the "Company"), with ownership of approximately 3.4% of the Company's outstanding shares. JFL is a healthcare focused fund and we are writing to express our support for the proposals articulated in Engine Capital's letter to the board dated February 14, 2020.

In particular, we are concerned that the company's strategic review might result in CymaBay engaging in a reverse merger or asset acquisition. We think this is ill advised. CymaBay faces a tremendous adverse selection regarding asset identification. Companies with promising assets can easily raise the capital required to develop them. CymaBay is therefore left evaluating those assets whose owners could not otherwise secure financing to develop them.

Drug development is a difficult endeavor at best. CymaBay has tried to develop Seladelpar and failed in that endeavor. We do not believe the board should compound this error by engaging in yet another drug development exercise when current shareholders can be rewarded with an immediate return simply by liquidating the company.

Sincerely,

Joseph F. Lawler M.D., Ph.D.
Managing Member
JFL Capital Management, LLC.

SOURCE JFL Capital Management, LLC