ProPhase Labs, Inc. (NASDAQ: PRPH), a diversified biotech and
genomics company, today announced that its Board of Directors has
authorized the repurchase of up to $6 million in ProPhase common
stock.
The Company has engaged ThinkEquity to
facilitate the share repurchase program. Under the new program, the
Company may repurchase its common stock from time to time, over the
next six months, through open market transactions (based on
prevailing market prices), privately negotiated transactions, block
trades, or any combination thereof, in accordance with applicable
federal securities laws, including Rule 10b-18 of the Securities
Exchange Act of 1934, as amended. The number of shares to be
repurchased and the timing of the repurchases, if any, will depend
on a number of factors, including, but not limited to, price,
trading volume and general market conditions, along with the
Company’s working capital requirements and general business
conditions. The Board will re-evaluate the program from time to
time, and may authorize adjustments to its terms. The Company
expects to utilize its existing funds to fund repurchases under the
repurchase program.
Ted Karkus, ProPhase’s Chief Executive Officer,
commented, “Today’s announcement of the stock repurchase program
reflects the Board of Directors’ confidence in both our current
business momentum and the future opportunities before us.”
“We expect strong revenue growth and cash flows
for our ProPhase Diagnostic subsidiary in the fourth quarter of
2021 and beyond as a result of the new Delta variant and an
anticipated surge in COVID-19 testing, in part due to an increasing
number of municipalities requiring their employees to undergo
regular testing in the absence of vaccination as well as the
reopening of schools across the country that require testing.”
“In addition, the integration of recently
acquired Nebula Genomics into our ProPhase Precision Medicine
division is proceeding as planned. As previously discussed, we
believe that the Nebula Acquisition will be transformative to our
business model, as we are convinced that personalized medicine is
the future of medicine, providing patients and caregivers the most
informed treatments and improved outcomes by optimizing
personalized care.”
“Nebula Genomics has been a leader in
personalized genetic testing, providing access to affordable and
secure Whole-Genome Sequencing (WGS). WGS is a genetic testing
technology that obtains comprehensive data on every gene and all of
the chromosomes in our DNA. WGS can be used to examine ancestry,
health, diet, rare gene mutations and rare diseases.”
“Our goal is to integrate Nebula Genomics’
comprehensive genomic testing into our CLIA-certified lab services,
which we believe will lead to faster turnaround times for results
and lower prices. We will also seek to leverage our distribution
network of over 40,000 food, drug and mass retail stores to further
expand direct-to-consumer and big-box retail distribution of
Nebula’s whole genome sequencing services. Each of these
initiatives could dramatically grow sales going forward.”
“We ended the second quarter with a strong cash
and working capital position and believe that we have ample capital
to implement the stock repurchase program while continuing to
execute on our strategy to further expand our capabilities in both
CLIA-lab testing and personalized precision medicine,” concluded
Mr. Karkus.
About ProPhase Labs
ProPhase Labs (Nasdaq: PRPH) (“ProPhase”) is a
diversified biotech and genomics company that seeks to leverage its
CLIA lab services to provide whole genome sequencing and research
direct to consumers and build a genomics data base to be used for
further research. The Company continues to provide traditional CLIA
molecular laboratory services, including COVID-19 testing. ProPhase
Precision Medicine, Inc. focuses on genomics testing technologies,
a comprehensive method for analyzing entire genomes, including the
genes and chromosomes in DNA. The data obtained from genomic
testing can help to identify inherited disorders and tendencies,
help predict disease risk, help identify expected drug response,
and characterize genetic mutations, including those that drive
cancer progression.
ProPhase Diagnostics offers a broad array of
clinical diagnostic and testing services at its CLIA certified
laboratories. ProPhase Diagnostics serves patients who may have
SARS-CoV-2 (COVID-19) through both saliva and nasal swab methods.
Critical to COVID testing, results are provided in under 24 hours.
ProPhase Diagnostics also offers PCR (polymerase chain reaction)
testing for Influenzas A and B and RSV; as well as antigen and
antibody/immunity tests to broaden its COVID-19 testing beyond
RT-PCR testing.
ProPhase Global Healthcare, Inc. was formed to
seek to expand the Company’s SARS-CoV-2 (COVID-19) testing into
other countries and to pursue additional healthcare-related
initiatives.
ProPhase Labs has decades of experience
researching, developing, manufacturing, distributing, marketing,
and selling OTC consumer healthcare products and dietary
supplements, including dietary supplements under the TK
Supplements® brand. ProPhase actively pursues strategic
investments and acquisition opportunities for other companies,
technologies, and products. For more information,
visit www.ProPhaseLabs.com.
Forward Looking Statements
Except for the historical information contained
herein, this document contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including statements regarding our strategy, plans and
objectives, including our execution of the stock repurchase
program, our expectations regarding revenue growth and cash flows
in the fourth quarter of 2021 and beyond as a result of an
anticipated surge in COVID-19 testing, the potential for
whole-genome sequencing (WGS), our plans to integrate Nebula
Genomics’ WGS services with our already established CLIA-certified
laboratories to offer faster turnaround times and lower prices, our
ability to leverage our retail relationships to promote our WGS
services, and our overall plans to expand our capabilities in
CLIA-lab testing and personalized precision medicine. Management
believes that these forward-looking statements are reasonable as
and when made. However, such forward-looking statements involve
known and unknown risks, uncertainties, and other factors that may
cause actual results to differ materially from those projected in
the forward-looking statements. These risks and uncertainties
include but are not limited to general economic conditions,
variations in the price and trading volume of our common stock, the
scale, scope and duration of the COVID-19 pandemic, consumer demand
for our COVID-19 testing and other lab processing services,
challenges relating to entering into new business lines, the
competitive environment, our failure to obtain and maintain
necessary regulatory approvals, our ability to continue to ramp up
our labs’ testing capacity and execute on our business plan, and
the risk factors listed from time to time in our Annual Reports on
Form 10-K, Quarterly Reports on Form 10-Q and any other SEC
filings.
Media Relations Contact:Jules AbrahamDirector
of Public RelationsCORE IR917-885-7378julesa@coreir.com
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