Precipio Settles Lawsuit with Crede Capital
March 13 2018 - 8:38AM
Specialty diagnostics company Precipio, Inc. (NASDAQ:PRPO),
announced today it has settled its lawsuit with Crede Capital Group
LLC, restructuring the final substantial liability of legacy
payables inherited as part of the merger with Transgenomic in June
2017. These liabilities have been reduced from approximately $19
million at the merger, to approximately $7 million (a reduction of
close to 65%).
As part of the settlement, Precipio will pay to Crede a total of
$1.925 million over a period of 15 months, with most payments
payable at Precipio’s option either in cash, stock, or as a
combination of both.
With this settlement, close to 95% of the $19 million in legacy
liabilities inherited as part of the merger with Transgenomic in
June 2017 will have been settled.
Purchase Price of the Merger
Prior to the merger, Transgenomic had in excess of $19 million
in legacy liabilities, which was owed to approximately 300
creditors. Because the merger was executed as a stock swap, the $19
million of liabilities comprised the largest portion of the
purchase price of Transgenomic, which was assumed by the surviving
entity, Precipio, Inc.
Resumption of Business Growth
Following considerable negotiation, the predominance of the debt
has been restructured with a remaining balance of
approximately $7 million, a substantial portion of which will be
paid over the next four years.
Precipio’s management has been adamant about addressing these
legacy liabilities in a manner equitable both to creditors and to
Precipio’s shareholders, to enable Precipio’s long term growth.
Precipio and the vast majority of those creditors have
successfully reached settlements that enabled the company to
balance paying off the cash component of the merger, while
preserving resources to complete the merger and grow the business.
Q4-2017 represented a turning point for the Company when it was
able to resume business growth after a post-merger restructuring
period.
“This is an important milestone because it signifies an end to
the restructuring phase and a return to focus entirely on business
growth. I would like to thank all the creditors for their
willingness to work with us to arrive at settlements that enable
them to receive some form of recovery, while enabling the company
to grow.” commented Ilan Danieli, Precipio’s CEO. “Furthermore, our
financial team has worked diligently to achieve settlements that
have significantly reduced the inherited liabilities from the
merger. Arriving at successful settlements such as this one will
allow management to fully focus time and resources on growth of the
business.” concluded Mr. Danieli.
About Precipio
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.
Forward-Looking Statements
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 12, 2017, the Company’s Quarterly Reports on
Form 10-Q for the quarters ended June 30, 2017 and September 30,
2017, 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.
Inquiries
investors@precipiodx.com
+1-203-787-7888
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