NEW HAVEN, CT / ACCESSWIRE / September 6, 2017 / Precipio, Inc. (NASDAQ: PRPO), today released the following Letter to its
Shareholders:
Dear Valued Shareholders,
As we enter the second half of 2017, I am delighted to report that we reached the end of a long process that began almost a year
ago, culminating in the recent merger of Precipio with Transgenomic and our relisting on NASDAQ. I was very proud to stand with my
team and my shareholders and represent them in ringing the NASDAQ opening bell. With our new listing and recent financings, we
believe we are in a strong position to grow our business. We intend to focus on executing our vision to eradicate the misdiagnosis
of serious diseases such as cancer, through our unique platform and laboratory focused on delivering specialized diagnostic
services to physicians and their patients. We believe physicians and their patients can greatly benefit from access to the
expertise and technologies within academic institutions our platform provides.
Recent Developments
Consolidated Laboratory Operations
Since the merger was announced, our challenge of combining both businesses was formidable. One of the largest operating expenses
for Transgenomic was the operations of the laboratory in Omaha, Nebraska. Transgenomic leased a 30,000 sq. foot facility which
housed both its CLIA laboratory testing facility, as well as an R&D facility. We took the pending merger as an opportunity to
negotiate a settlement with the landlord that would allow the company to move to a smaller facility more suitable for its needs,
and at a far lower cost. Precipio operates its own CLIA facility in New Haven, CT, and upon the merger, had planned to consolidate
its two CLIA operations into one facility. The transition of the Transgenomic CLIA laboratory to New Haven is a significant
operational undertaking which involved major steps including shutting down the lab operations, relocating all equipment to the New
Haven facility, setting up the laboratory, the integration with the existing laboratory operations, equipment re-validation etc.
and finally resuming operations.
We began this process in June and expect to complete it in September. We anticipate the backlog that accumulated during the
transition will be completed by end of year; we will be resuming existing projects, and have also received new projects from a
number of our customers.
Reducing Accounts Payable
As part of the consolidation of our two entities, over the past few months we have successfully negotiated reduced balances on a
significant part of the accounts payable. The payments will be made from proceeds from our recently completed offering, with the
majority of amounts being paid down over the next 12-18 months. The settlement agreements signed with the vendors generally
stipulate that once the settlement payments have been made in full, the settlement is completed. At that time, the company will be
eligible to write down the remaining balance of the paid account to zero. Therefore, while the full amount will not be written off
and reflected in our financials for another year, the actual outlay required to satisfy the accounts payable balance is
significantly lower.
The challenge of combining these businesses is formidable, but we believe this process was necessary for creating long- term
value for our shareholders. Once completed, our operations will be centralized and streamlined with better resources to enable us
to execute our vision. In fact, we will be a leaner and more competitive company. As we previously announced, we have already
reduced our combined burn rate by more than $5M on an annualized basis.
Therefore, it is with great pride and a strong sense of purpose and responsibility, that we proceed in our efforts to grow the
business. We'd like to thank you for your continued encouragement and support as we work to carry Precipio forward through the next
phases of our development and growth.
Sincerely,
Ilan Danieli Chief Executive Officer Precipio, Inc.
Business Update Conference Call
Management will host a business update conference call to discuss recent corporate developments and strategic initiatives on
Tuesday, September 12, 2017, at 4:30pm Eastern Time. Following management's formal remarks, there will be a question and answer
session.
To listen to the conference call, interested parties within the U.S. should call 1-877-317-6789. International callers should
call 1-412-317-6789. All callers should ask for the Precipio Corporate Update conference call.
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, initially the Yale School of Medicine, 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 Precipio's merger with Transgenomic, consolidation of laboratory operations, reductions of accounts
payable, 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 Report on Form 10-Q for the quarter
ended June 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.
Contacts:
Precipio Investor Relations: John Marco Managing Director Core IR 377 Oak Street Garden City, NY 11530 516 222 2560
johnm@coreir.com www.coreir.com
SOURCE: Precipio, Inc.
