Decision Diagnostics Corp.
Under the Symbol:
Decision Diagnostics Board Reacts Positively to Above-Market Offer From Venture-Funded Company
Wednesday, August 2, 2017 9:20 AM
Company Begins Soliciting Offers from Valuation Experts to Better Value DECN and Its Properties and to Value Settlement Options in Patent Infringement Suit vs. J&J
LOS ANGELES, CA / ACCESSWIRE / August 2, 2017 / Decision Diagnostics Corp. (OTC PINK: DECN), a manufacturer, quality plan administrator, and exclusive worldwide sales, service, and regulatory process agent for GenUltimate!™ glucose test strips, the pre-market ready GenSure!™ and GenChoice!™ test strips, and the revolutionary meter and test strip system GenPrecis! GenUltimate!™ glucose test strips work with the market leading Johnson & Johnson's ("J&J") LifeScan OneTouch Ultra family of glucose testing meters. The company today addresses shareholders, investors and interested parties regarding a previously unsolicited M&A offer.
The Board of Directors of Decision Diagnostics Corp. reviewed the formal written offer received, and Mr. Berman took the opportunity to question the proposed M&A partner. Ultimately, the Board determined that while the offer is substantially above the current stock selling price, the offer is currently deficient in several respects.
Keith Berman, CEO of DECN, stated, "We have made it clear to our proposed partner that their well-thought offer does not take into account several factors which would lead to a much higher valuation. First, the company is in the process of concluding a raise of strategic capital and has received a subscription for $3.25 million which the company desires to close prior to its filing on August 14, 2017 of its 2Q 2017 Quarterly Report; and a second subscription for more than $2.5 million under the same terms."
Additionally, the Board also determined that it will not counter offer the proposed M&A partner until they receive a prepared valuation, which they will commission soon, or a revised offer. To that end, the company has already received a proposal for this valuation from a large accounting firm. The company has been informed that another offer may be made in the coming days by another type of M&A partner.
Mr. Berman concluded, "The offer received does not take into account any settlement expected from our litigation with the Lifescan division of Johnson + Johnson. Thus, we have communicated to the proposed M&A partner that the Board is neither accepting nor rejecting their current offer. While we intend to stay in regular contact with our proposed partner, the Board believes that prior to the conclusion of our valuation exercise, we anticipate receiving a revised offer."
This release contains the company's forward-looking statements which are based on management's current expectations and assumptions as of July 31, 2017, regarding the company's business and performance, its prospects, current factors, the economy, and other future conditions and forecasts of future events, circumstances, and results.
Decision Diagnostics Corp.
Keith Berman (805) 446-2973
SOURCE: Decision Diagnostics Corp.