ProPhase Labs Engages Industry Expert to Advise on Possible Acquisition of CLIA Accredited Labs Certified for COVID-19 and Ot...
September 30 2020 - 5:04PM
ProPhase Labs, Inc. (NASDAQ: PRPH), a diversified medical science
and technology company, today announced its intention to explore
the acquisition of one or more CLIA (Clinical Laboratory
Improvement Amendment) accredited labs suitable for COVID-19 and
other testing.
To assist with this process, the Company has
entered into a Consulting Agreement with industry expert Predictive
Laboratories, Inc. (“Predictive Labs”), pursuant to which
Predictive Labs has agreed to provide certain consulting and other
services to the Company, including its assistance in: (i)
identifying and introducing the Company to new opportunities in the
medical technology and testing fields; (ii) assisting and advising
the Company in acquiring one or more CLIA accredited labs suitable
for COVID-19 and other testing; (iii) obtaining new business for
any such labs acquired by the Company; (iv) equipping and staffing
such labs; (v) advising and assisting in the operation of such
labs; and (vi) assisting the Company in validating and obtaining
certification of such labs.
The Company has also entered into an Amended and
Restated Promissory Note and Security Agreement (the “New Note”)
with Predictive Labs, pursuant to which the Company has loaned to
Predictive Labs $3.0 million (inclusive of $1.0 million in the
aggregate previously loaned to Predictive Labs in July 2020 by the
Company).
All compensation that may be earned by
Predictive Labs under the Consulting Agreement is milestone-based
and will first be applied to the acceleration and prepayment of all
sums due to the Company, including but not limited to sums due
pursuant to the New Note.
“While there can be no assurances that we will
consummate an acquisition, I look forward to working with
Predictive Labs and believe that their robust industry expertise in
building and operating CAP (College of American Pathologists) and
CLIA (Clinical Laboratory Improvement Amendment) accredited
laboratories will prove invaluable as we evaluate opportunities in
this space. We look forward to working closely with their team to
pursue these exciting new business opportunities, working to create
sustainable value for our shareholders over the long-term.”
About ProPhase Labs
ProPhase Labs (NASDAQ: PRPH) is a manufacturing
and marketing company with deep experience with OTC consumer
healthcare products and dietary supplements. The Company is engaged
in the research, development, manufacture, distribution, marketing
and sale of OTC consumer healthcare products and dietary
supplements in the United States. This includes the development and
marketing of dietary supplements under the TK Supplements®
brand.
In addition, the Company also continues to
actively pursue acquisition opportunities for other companies,
businesses, technologies and products inside and outside the
consumer products industry. For more information visit us at
www.ProPhaseLabs.com.
About Predictive Laboratories,
Inc.
Predictive Laboratories, Inc., a wholly owned
molecular and genetic diagnostics company and subsidiary of
Predictive Technology Group, Inc. (OTC: PRED), is focused on
hard-to-detect diseases. The laboratory is equipped with
state-of-the-art equipment for any next-generation sequencing
experiments including whole exome sequencing, gene and genetic
marker panels, and low-pass whole genome analysis of embryos for
aneuploidies-predictivelabs.com.
Forward-Looking Statements
Except for the historical information contained
herein, this document contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including statements relating to the Company’s potential
acquisition of one or more CLIA labs and milestone payments that
may become due under the Consulting Agreement. Management believes
that these forward-looking statements are reasonable as and when
made. However, such forward-looking statements involve known and
unknown risks, uncertainties, and other factors that may cause
actual results to differ materially from those projected in the
forward-looking statements. These risks and uncertainties include,
but are not limited to the risk factors listed from time to time in
our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and
any subsequent SEC filings.
Investor Relations:Chris
TysonExecutive Vice PresidentMZ Group - MZ North America(949)
491-8235PRPH@mzgroup.uswww.mzgroup.us
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