Lexagene Holdings Inc V.LXG

Direct email from Daryl Rebeck

[Right80%]

Hi all, the President of Lexagene here. First I want to thank Marc and all the people here who are more educated and supportive than most. It is true we are working night and day on this Covid disaster but should be noted it was and is not our sole business objective. While Jack and I founded this company to prepare for just something like this it is a very competitive landscape with all of the massive diagnostic companies in the space. That said we are very well suited to this pandemic and future ones to unfortunately come. From an investment point of view, investing in diagnostic companies that are singular focused on one pathogen or that said one industry is always cause for concern which is why many start ups solely pursing human diagnostics don't make it. For us it was always ONE of the industries we can compete in but not the only one. Vet and food safety together are actually larger industries than human clinical and we have very little if any competition there as cost and ease of use is something even the major companies can't compete in. In the case we are 95 percent done our veterinary panel so this was a simple add on and not a whole paradigm shift. In human clinical the cost per tests are much higher so a more expensive filter and use of a licensed technician is not as much of an obstacle. That said since the main focus on everyones mind is Covid, I will address. Firstly, let's address the next pandemic god forbid happens soon we can point to open access. We at LexaGene ran our sample from the CDC days later as you can load any asset on our machine whereas the majors took months. Now this is irrelevant unfortunately on Covid as now they are there but one must recognize the majors (Abbott, Rosch, Thermo, etc) took months from the sequence to adapt their machines and tests to get their EUA clearance. On the next one we will be first and that isn't lost on the whole diagnostic industry right now due to our open access. But again to keep it relevant virtually all of the EUA's have been granted to multi billion dollar companies with employees working around the clock on FDA and their systems. We have just hired Steve Armstrong to submit our EUA which is in process. If and when we recieve that authorization we will be one of the first small cap companies to achieve EAU. Which leads me to the point of missing the cornovirus which isn't the case. What we are seeing now are things like the Abbott test that is five mins and people assume well that is that for LexaGene. The reality is clinicians don't rely on those isothermal tests as they only look for one pathogen and also do not help them find things like Covid early on the cycle of incubation thus doing more harm then good. At this point it is all they have and its confirmation of a later stage infection but they are turning patients away who are infected in the early stages and also if they are infected with another respiratory illness which is equally concerning. Imagine turning away someone who is in the early stages and saying for this test you don't have it and giving that person false confidence they are free to go and act normally. This is one of the reasons this infection is growing so fast as it incubates for so long as you infect all around you. So again for now with a massive backlog of people needing testing those tests are very important but in short order when physicians, disease experts, govt, insurance agencies etc get more clarity they will demand molecular diagnostics that catch Covid and all other pathogens very early and anything else that the patient is sick with or showing signs off. As we all know Jack is one of the foremost experts on infectious disease so if any CEO can build a company to address the needs of what is needed and you are correct that he is working night and day (and sleeping at the office) to get us to be relevant in this sooner than we anticipated. Also to be clarified we are not Canadian pitted at all. We have three employees (including myself) that deal with the Canadian investors and marketing and all of the R and D and engineering etc are in Beverly Mass. which equals 29 ppl. We remain incredibly optimistic and continue to attract talent from the multi billion dollar companies in our space who understand and buy into what we are building here. We are always around to talk and share information and progress so please feel free to reach out to me at [e-mail] or Jack. If times were different we would continue to invite anyone down to our facilities to come run a sample on their own without help from anyone as we have nothing to hide for lack of a better term (which Marc and Alan can attest to as they have done so).