Precipio CEO Sends Letter To Shareholders Related To Recent Proxy Filing
9:33 am ET November 16, 2018 (Benzinga) Print
Dear Shareholder,
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 investors@precipiodx.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.
Sincerely,
Ilan Danieli
CEO
