Decision Diagnostics Corp.
Under the Symbol:
Decision Diagnostics Corp. Receives Surprise Acquisition Offer from Valued Venture Funded Company
Thursday, July 13, 2017 9:20 AM
LOS ANGELES, CA / ACCESSWIRE / July 13, 2017 / Decision Diagnostics Corp. (OTC PINK current: DECN), the manufacturer, quality plan administrator, and the exclusive worldwide sales, service, and regulatory processes agent for the popular GenUltimate!™ glucose test strips, designed to work with the market leading Johnson & Johnson Lifescan OneTouch Ultra meters ("J&J") and the pre-market ready GenSure!™ and GenChoice!™ test strips, and the in-development meter and test strip system GenPrecis! for the U.S., EU and/or developing world markets, today announces a revised confidential acquisition offer from a well-financed venture funded company. The revised offer was significantly higher than its shortened prior offer.
In April 2017 the company's Principal Executive Officer, Keith Berman, received and reviewed a prior offer proposal, first expressed verbally, and then in email form, from the proposed acquisition partner. Mr. Berman found the earlier offer to be incomplete on its face, and open ended. Mr. Berman, at the behest of another Board member, asked the proposed acquisition partner to conform the offer in a manner more consistent to standard M&A proposals and documentation.
Both proposals were made at generous premiums to the company's current stock price and market valuation. Mr. Berman has now submitted the current proposal to the Board of Directors for their review and comments.
Robert Jagunich, the DECN director with the most experience in M&A activities commented, "Although we have received an offer and then a revision of that original offer, both at premiums to current market prices, it is the Board's belief that we need to make a critical evaluation of the entire concept presented and based on our analysis, we may then hire an expert to verify independently whether this offer provides full value for the company's shares, or whether there is more value to shareholders by countering the most recent offer or by rejecting it and remaining independent. We believe, and the industry has shown, that the properties and assets of the company are worth by themselves significantly more than the current market capitalization and therefore while above market transactions are exciting, we need to ensure that the full value of the company is being reflected in any transaction."
Keith Berman, Principal Executive of Decision Diagnostics continued, "Even with a proposal in hand, Decision Diagnostics continues to explore its options, as well as other shareholder value enhancing opportunities. The current offer is confidential by the terms of the offer, and little more can be said at this time, other than we did not expect to receive a term sheet until several months after the market release of one or more of our new products. We were also surprised by the identity of the offeror who would put our company in play."
Mr. Berman concluded, "Shareholders are not being requested to take action at this time, or call the company with a multitude of requests. The Board will take action in due course, and we intend to fully comply with our disclosures rules to keep our shareholders abreast of the situation."
This release contains the Company's forward-looking statements which are based on management's current expectations and assumptions, as of July 12, 2017, regarding the Company's business and performance, its prospects, current factors, the economy, the state of any changes to the Affordable Care Act, and other future conditions and forecasts of future events, circumstances, and results.
Decision Diagnostics Corp.
SOURCE: Decision Diagnostics Corp.