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Letter to Shareholders to accompany recent proxy filing
CEO to share a few thoughts in advance of the upcoming shareholder call on Monday, November 19th at 5PM EST
NEW HAVEN, Conn., Nov. 16, 2018 (GLOBE NEWSWIRE) -- Specialty diagnostics company Precipio, Inc. (NASDAQ: PRPO), yesterday filed a proxy statement in advance of a special shareholder meeting scheduled for December 20th, 2018. Please see below a brief statement from Ilan Danieli, Precipio’s CEO.
I’d like to take this opportunity to share with you a few thoughts related to the proxy filed yesterday, and the upcoming special shareholders meeting.
The purpose of the proposals in the proxy is to create options for the company, to ensure that management has the ability to act quickly in the best interest of the company to protect value to its shareholders. It does not necessarily mean that any of the measures will actually be implemented. As an example, one of the proposals laid out in the proxy is to enable management to effectuate a reverse split, if necessary. I have said before, and I stand by my belief that over the next few months, the share price has the potential to appreciate above $1.00 and to regain compliance with Nasdaq. On Monday I will share some of the exciting strategic developments we are working on, and over the next few months as these developments materialize they will be publicized, as we did with the recent Perkin Elmer announcement. It is, however, management’s responsibility to create alternate options and develop viable alternate plans to protect the company, and its shareholders.
As we all know, the stock market is uncertain. Like many of you, I was disappointed with the response to some of the recent announcements; conversely, our share price recently appreciated 15% in one day, this week. My point is that it’s impossible to predict what will happen; and it’s irresponsible to rely solely on what we hope will happen, actually taking place. That is why a responsible management team MUST create alternate options, and develop appropriate plan B (and sometimes a plan C and D). We must hope for the best (and work hard to make it happen); and plan for the worst by creating alternate options for the company. My training as a tank commander taught me the importance of working towards the best scenario, while always being prepared for the worst. This is true in the battlefield when lives are at stake; it is equally true in business, particularly with volatile public markets.
The measures in the proxy statements are tools, (much like an insurance policy) to provide the required flexibility for management to act quickly; tools we hope we won’t need. My team and I are committed to doing everything we can to build shareholder value, to avoid a reserve-split, as well as to avoid any unnecessary dilution. We cannot ignore the possibility that things may not turn out as we hope for them; we must be prepared, by establishing these tools as options. This does not in any way change the deep commitment my team and I have to continuing to execute and deliver value to our shareholders.
I will be discussing this further during the shareholder call this coming Monday. As always, I welcome your input and dialogue by sending your thoughts to email@example.com. I would like to thank you for taking the time to read this letter, and I hope to see you on the upcoming call.
Precipio has built a platform designed to eradicate the problem of misdiagnosis by harnessing the intellect, expertise and technology developed within academic institutions and delivering quality diagnostic information to physicians and their patients worldwide. Through its collaborations with world-class academic institutions specializing in cancer research, diagnostics and treatment such as the Yale School of Medicine and Harvard’s Dana-Farber Cancer Institute, Precipio offers a new standard of diagnostic accuracy enabling the highest level of patient care. For more information, please visit www.precipiodx.com.
Certain statements in this press release constitute “forward-looking statements,” within the meaning of federal securities laws, including statements related to ICP technology, including financial projections related thereto and potential market opportunity, plans and prospects and other statements containing the words “anticipate,” “intend,” “may,” “plan,” “predict,” “will,” “would,” “could,” “should,” and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors. Factors that could cause future results to materially differ from the recent results or those projected in forward-looking statements include the known risks, uncertainties and other factors described in the Company’s definitive proxy statement filed on May 29, 2018, the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2018 and on the Annual Report on Form 10-K for the year ended December 31, 2017 as well as the Company’s prior filings and from time to time in the Company’s subsequent filings with the Securities and Exchange Commission. Any change in such factors, risks and uncertainties may cause the actual results, events and performance to differ materially from those referred to in such statements. All information in this press release is as of the date of the release and the Company does not undertake any duty to update this information, including any forward-looking statements, unless required by law.
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