Matrixx Initiatives today announced that it has filed a presentation with the Securities and Exchange Commission ("SEC") in connection with its revised offer to acquire ProPhase Labs, Inc. PRPH. Separately today, Matrixx announced it has increased its offer to acquire all of the outstanding shares of ProPhase by 14.3% to $1.60 per share, and has sent a letter to the ProPhase Board of Directors.
Matrixx believes that its revised all-cash offer, which is not contingent on financing, is highly attractive to ProPhase shareholders, as it provides them with compelling upfront and certain value relative to a difficult, uncertain and highly speculative multi-year turnaround program recently outlined by ProPhase's management. Matrixx's presentation outlines the significant challenges ProPhase faces by remaining a standalone entity, including:
ProPhase is in a Vulnerable Market Position
ProPhase lacks scale to effectively compete in the highly competitive Cough Shortening / Immune Boosting market.
ProPhase's most comparable competitors generate 3.5x more in annual revenue and are backed by owners with substantial resources.
ProPhase has an Unsustainable Financial Model
ProPhase
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