Guardion Health Sciences, Inc. (“Guardion” or the
“Company”) (NASDAQ: GHSI) is providing an update to
shareholders with regard to its business plans. In conjunction with
Guardion’s emphasis on differentiation of brands and the
development and integration of an E-commerce platform, and the
further development of clinically supported nutritional products
and continued expansion into international markets, the Company has
retained the investment banking firm of Corporate Finance
Associates (“CFA”) to act as its exclusive financial advisor to
assist management and the Board of Directors in the evaluation of
strategic transactions and opportunities to enhance shareholder
value.
Shortly after recent previously announced
changes in senior management, the Board of Directors established a
Strategy Committee to work with management and to review the
Company’s business initiatives, strategies and opportunities in
order to maximize shareholder value.
As part of that review, the Board of Directors
also determined that it would augment the Company’s organic growth
initiatives with potentially strategic acquisitions to accelerate
the development of the Company’s core businesses. CFA has been
engaged to assist the Company in evaluating complementary products,
technologies and businesses that can contribute positively to the
Company’s top-line revenues and EBITDA.
The Company also recently retained CORE IR, a
boutique investor and public relations strategic advisory firm, to
assist the Company with investor relations, public relations, and
shareholder communications services. CORE IR’s priority is to focus
on expanding market awareness for Guardion and conveying the
Company's business model and growth strategies to its shareholders
and the investment community.
Over the past few months, the Company has been
designing and implementing various internal growth strategies which
it anticipates, over time, will expand the Company’s business
platform, product offerings, market position and financial
performance with a view to growing the Company and driving
shareholder value.
These initiatives and strategies include:
Portfolio Growth and Brand Focus - Continuing to
build out and optimize the Company’s core brands, VectorVision and
NutriGuard, with its proprietary product lines, such as Lumega-Z,
GlaucoCetin, Immune-SF (formerly acuMMUNE), and the VectorVision
CSV-2000
Sales Channel Development:
Expand Current B2B Sales Channel – Continuing
its work with world-class clinicians, using translational research
to focus on new proprietary nutritional research to create new
proprietary nutritional strategies
Direct to Consumer – Develop a digital strategy
to include a “direct-to-consumer” (“DTC”) E-Commerce platform,
which the Company believes will provide high leverage opportunities
for the distribution of its eligible products
International – Continuing to build and grow its
business internationally, particularly in the Far East
Evidence-Based Therapies – Continuing to
demonstrate, both clinically and scientifically, through sponsored
and investigator initiated research, the efficacy of the Company’s
condition-specific nutritional therapies
Management Team – Expand and strengthen its
management team to include the skills required to execute on the
strategies
Robert N. Weingarten, Chairman of the Board of
Directors, stated, “The Board of Directors believes that these
recently-developed initiatives form a critical component in our
plans to develop a solid basis for growth and development in the
near term. The retention of CFA to review and advise the Strategy
Committee on potential transactions, as well to source additional
strategic opportunities, is an important step to facilitate
Guardion’s capability to accelerate growth in an accretive manner
that would be expected to benefit the Company and its shareholders.
In addition, the Company has retained an executive search firm to
identify a permanent Chief Executive officer to lead the Company’s
business
initiatives.”
Dr. David Evans, the Company’s Chief Science
Officer and interim President and Chief Executive Officer, stated,
“We continue to be very focused on our mission to serve the best
interests of our shareholders. The changes in senior management
over the past few months, the implementation of new business
initiatives and strategies, and now the hiring of CFA and its
advisors, are in keeping with our belief that the Company’s current
market profile and capitalization do not adequately reflect the
full value of our unique and compelling proprietary products and
technologies. Additionally, the Company’s strong cash position and
the absence of debt on its balance sheet will allow for Guardion to
exploit acquisition opportunities that would further leverage our
valuable asset base and our reputation for evidence-based
technologies in order to enhance the Company’s long-term
outlook.”
The Company has not set a timetable for this
process and does not intend to disclose developments with respect
to this process unless and until the process has been completed,
and until it enters into a definitive agreement for a specific
material transaction, or as otherwise required by law. The
retention of CFA to assist the Company in the exploration and
evaluation of strategic transactions or acquisitions may not result
in any agreement or transaction and, if completed, any agreement or
transaction may not be successful or on attractive terms. In
addition, a future transaction may also include a capital raising
component to fund expanding business operations and/or to fund
acquisitions.
About Guardion Health Sciences,
Inc.
Guardion is a specialty health sciences company
that develops clinically supported nutritional products, medical
foods and medical devices, with an emphasis in the ocular health
marketplace. Information and risk factors with respect to Guardion
and its business, including its ability to successfully develop and
commercialize its proprietary products and technologies, may be
obtained in the Company’s filings with the SEC
at www.sec.gov.
About Corporate Finance
Associates
Corporate Finance Associates is one of the
largest and most experienced middle-market investment banking firms
in the nation. Since 1956, CFA has been advising on merger,
acquisition, divestiture and capital formation transactions
globally. CFA has over 30 offices in the United States, India,
Belgium, Denmark, Ireland, Netherlands, Switzerland and the United
Kingdom. Additional information about Corporate Finance Associates
may be found on their website at www.cfaw.com.
Forward-Looking Statement
Disclaimer
With the exception of the historical information
contained in this news release, the matters described herein may
contain forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. Statements
preceded by, followed by or that otherwise include the words
“believes,” “expects,” “anticipates,” “intends,” “projects,”
“estimates,” “plans” and similar expressions or future or
conditional verbs such as “will,” “should,” “would,” “may” and
“could” are generally forward- looking in nature and not historical
facts, although not all forward-looking statements include the
foregoing. These statements involve unknown risks and uncertainties
that may individually or materially impact the matters discussed
herein for a variety of reasons that are outside the control of the
Company, including, but not limited to, the Company’s ability to
raise sufficient financing to implement its business plan, the
impact of the COVID-19 pandemic on the Company’s business,
operations and the economy in general, and the Company’s ability to
successfully develop and commercialize its proprietary products and
technologies. The Company has no commitments with respect to any
acquisition or investment. Readers are cautioned not to place undue
reliance on these forward- looking statements, as actual results
could differ materially from those described in the forward-looking
statements contained herein. Readers are urged to read the risk
factors set forth in the Company’s filings with the SEC, which are
available at the SEC’s website (www.sec.gov). The Company disclaims
any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
Investor Relations Contact:
CORE IR Scott Arnold (516)
222-2560 scotta@coreir.com
Corporate Finance Associates
Contact:
Daniel
Sirvent |
Joe
Sands |
Managing
Director |
Managing
Director |
949.386.7380 |
949-457-8990
Ext. 114 |
dsirvent@cfaw.com |
jsands@cfaw.com |
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