Chembio Diagnostics CEO issues letter to shareholders

Chembio Diagnostics released the following letter to stockholders concerning the pending tender offer by Biosynex. "As previously communicated, Chembio Diagnostics entered into an Agreement and Plan of Merger dated as of January 31 with Biosynex , and Project Merci Merger Sub 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 45c per share, net to the seller in cash, without interest and subject to any required tax withholding. Biosynex previously announced, on March 15 an extension of the Offer until 6:00 p.m, New York City time, on March 28. On March 29 , Biosynex announced a second extension of the Offer until 6:00 p.m., New York City time, on April 12. 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. 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 ("SEC") 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 Nasdaq as soon as the current month; and the Company’s ability to continue as a going concern due to its net losses from operations and ongoing liquidity concerns. 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.