Capricor Therapeutics Inc. (NASDAQ: CAPR) is facing a fresh wave of shareholder pressure. On Friday, investment firm Kaos Capital Ltd. sent a formal letter to the board demanding an immediate meeting to discuss a comprehensive governance reset, aggressive cash preservation, and a strategic realignment.
Kaos Capital plans to nominate two independent director candidates and wants the board to create an M&A and Strategic Alternatives Committee, chaired by a shareholder-backed director. The goal: steer the company away from relying solely on its lead asset, deramiocel.
Capricor's Soaring Expenses Spark Cash Preservation Push
The activist firm is particularly concerned about spending. Capricor reported $237.9 million in cash, cash equivalents, and marketable securities as of June 30, 2026, down $80.2 million from year-end 2025. Total operating expenses hit $79.7 million in the first half of 2026, with general and administrative costs at $23.5 million, roughly double the same period last year.
Kaos Capital is urging the company to adopt a formal Cash Preservation Plan, including a near-term freeze on nonessential spending and a zero-based review of administrative costs.
Expanding Beyond Single-Asset Risk
While acknowledging deramiocel's potential, Kaos Capital argues that concentrating all capital and regulatory risk into one outcome is too risky. The firm wants Capricor to act as a disciplined biotechnology platform, evaluating acquisitions and partnerships in areas like inflammation, fibrosis, tissue repair, targeted delivery, and regenerative medicine to diversify risk and build long-term value.
Addressing Legal Overhang And Governance Oversight
Kaos Capital also wants the board to hire top-tier independent legal advisers to quickly resolve pending legal disputes and securities actions, reducing ongoing costs and reputational risk. The investor is calling for an independent review of internal oversight processes to create a more shareholder-friendly environment.
Capricor Therapeutics Price Action
CAPR shares were down 8.92% at $6.22 at the time of publication on Friday, according to market data.
