Specialty diagnostics company Precipio, Inc. (NASDAQ: PRPO),
provides an update to its shareholders.
Dear Investors:
We are all aware of the recent pricing pressure
on Precipio’s stock. To this end, we would like to provide an
update of both our business activities and to reiterate investor
communication practices.
Business Activities:First, we
would like to address the business activities surrounding our new
products, IV-Cell and HemeScreen. Both products address critical,
costly and lengthy diagnostic pathology challenges for cancer
testing on a world-wide basis. Simply put, these products solve
major clinical, operational, and cost issues that have existed for
decades. Both IV-Cell and HemeScreen are proprietary to Precipio
and have patents pending.
As the products we make are critical to
diagnosing cancer, incorporating them into a manufacturing process
or into the customer’s laboratory work flow is a careful and
precise process that requires in depth testing and validation, in
order to ensure that accurate results are reached – as it should
be. Introducing these products by large companies we are working
with, always takes longer than we hope for; often times smaller
companies like us use our own rapid process as a proxy, and
subsequently we underestimated the length of time to complete
formal independent third-party validation studies and customer
in-house reviews.
With regard to the IV-Cell progress (and other
technologies) - as recently announced, we’ve identified the
manufacturer for IV-Cell. As some of you correctly pointed out,
“Why would we need such a manufacturer if we didn’t anticipate
large contracts?” This is a correct assumption and we are working
with several customers both domestically and internationally to
trial, validate and bring on board the media. As mentioned above,
this is not a simple process, but once concluded we will be sure to
inform the market.
These validation studies are projected to be
complete by late Q3, and (assuming successful validation), be
converted into orders and subsequent revenues. While the delay is
extremely disappointing, we can report that all outside testing
results received so far have successfully replicated our internal
data. As we progress and continue to achieve material
milestones, we will issue additional investor communications.
Bottom line - Nothing has changed:
- These products work and deliver value
- Customers can benefit significantly from clinical, operational
and cost benefits
- We are engaged with major players at the highest level
- We strongly believe this will convert into substantial revenue
for the company
No Equity
Raise:Second, we would like to reiterate
our prior announcements, that there are no plans to execute an
equity raise. The company’s cash reserves, combined with the
September 2018 equity line are projected to provide sufficient
operating runway to grow our pathology business, complete external
product validation studies and successfully market IV-Cell and
HemeScreen to our targeted customers.
Our goal is to continue to make strides towards
cash flow positive there the company no longer needs to rely on
outside capital sources to fund its operations. We believe that
with our new suite of products such as IV-Cell and HemeScreen,
generating good revenue and gross margin, this is achievable and
within sight.
News release policy: The
company has always attempted to provide feedback, information and
transparency to all our shareholders. When we have material news,
we are eager to share; we have never “held back” any news, have no
reason to and do not intend to do so. Day-to-day we focus on
building our business and expanding our technology. We believe we
have the right business model, eliminating misdiagnosis of cancer
through expertise and technologies we’ve developed. Our mission is
to create long-term value.
In the past and most recently, we know we are
under assault by the shorting interests. We stand firm in knowing
that the best way to solve this issue is to create value through
operating a growing and profitable business. Like you, we are
pained by the abusive nature of shorting in the market.
Unfortunately, the only tool we have at our disposal is continued
results. While we know many of you would love to see news every
day, we strongly believe that news must be meaningful and material
in order for it to be impactful. We want to avoid the “cry wolf”
situation. We are determined to reach the point where the market
recognizes our value and responds accordingly and we are certain
that this will be reflected in the share price. That day will come;
you have mine and my team’s commitment to that.
To the investors who have been with us, creating
value will not happen overnight; and it will not happen in a
straight line – there will be ups & down, as is common for a
micro-cap healthcare company. Many of you seem to think that the
company has news and is “holding back”; or that the company is
purposely delaying either the achievement, or announcement of
results. This could not be further from reality. When we have
material news regarding the business we share it.
As indicated in our recent metrics release, we
are well poised for continued growth with regard to the pathology
services growth. We will be tracking & reporting these metrics
quarterly, to continue to provide transparency to our
shareholders.
Going forward:
As mentioned above, we will continue to share
pertinent information as quickly as I can. As always, we welcome
you emails to our investors@precipiodx.com email. Rest assured, we
read each one. Like you, we are all shareholders, and my team and I
have invested the past 8 years of our lives to build this important
company. Whenever allowed by SEC regulations I personally purchase
Precipio stock.
In summary, we believe we are in a position to
create long term value for our shareholders.
Thank you for your ongoing support.As always at
your service,
Ilan DanieliCEO, Precipio
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 April 19, 2019 , the Company’s Quarterly Report
on Form 10-Q for the quarter ended March 31, 2019 and on the Annual
Report on Form 10-K for the year ended December 31, 2018 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.
Inquiries:
investors@precipiodx.com
+1-203-787-7888
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