Chembio Diagnostics board recommends stockholders tender shares

Chembio Diagnostics released a letter to stockholders concerning the pending tender offer by Biosynex, April 10, 2023, which read in part, " As previously communicated, Chembio Diagnostics entered into an Agreement and Plan of Merger, dated as of January 31, 2023, with Biosynex, and Project Merci Merger Sub, Inc., a Nevada corporation and wholly-owned indirect subsidiary of Biosynex. Pursuant to the Merger Agreement, the Purchaser commenced a tender offer to purchase all of the issued and outstanding shares of the Company’s common stock, par value $0.01 per share, for a purchase price of $0.45 per share, net to the seller in cash, without interest and subject to any required tax withholding. Biosynex previously announced, on March 15, 2023, an extension of the Offer until 6:00 p.m, New York City time, on March 28, 2023. On March 29, 2023, Biosynex announced a second extension of the Offer until 6:00 p.m., New York City time, on April 12, 2023. What Happens If Stockholders Don’t Tender Their Shares: There are substantial risks if the Offer and merger between Biosynex and Chembio are not completed. As discussed in further detail in the Schedule 14D-9, as amended, the Company’s letter to stockholders dated March 15, 2023 and the Company’s Annual Report on Form 10-K that was filed with the U.S. Securities and Exchange Commission on March 29, 2023, these risks include: breaching a financial covenant in its Credit Agreement related to debt maturing in September 2023 that could force the Company to pursue a transaction or financing arrangement that is highly dilutive to existing stockholders or a bankruptcy or restructuring proceeding; being delisted by The Nasdaq Stock Market; and the Company’s ability to continue as a going concern due to its net losses from operations and ongoing liquidity concerns. The Company received formal notice on April 6, 2023 of its continued non-compliance with Nasdaq’s minimum bid price listing requirement. The Company intends to timely request a hearing before the Nasdaq Hearing Panel which will stay any further action by Nasdaq, including the delisting of the Company’s common stock from Nasdaq, pending the issuance of decision by the Panel. If less than a majority of the outstanding shares of Chembio common stock are tendered, the Offer will not be completed and Chembio will not merge with Biosynex. For the Offer to be completed, more than 50% of the outstanding Shares must be validly tendered."