Symetryx announces non-binding proposal to buy Check-Cap for $4.35 per share

Symetryx Corporation announced a non-binding proposal to acquire Check-Cap for $4.35 per share in cash. “Although Symetryx owns less then 5% of CHEK, we believe that Symetryx is the largest shareholder of Check, as of the date of this letter. Based on the quarterly report for the quarter ended March 31, 2023, the company had cash and cash equivalents of $37.4 million. That equates to approximately $6.39 per share in cash based on a fully diluted share count of 5,847,838, yet the closing price on July 17, 2023 was $3.00, or a market cap of approximately $17.54M. Given that there are minimal business operations, we believe this significant discount to cash per share is surprising. With management and insiders owning less than 0.25% of the Check shares, we believe management is not aligned with the best interests of Check shareholders. Symetryx non-binding proposal is contingent upon a number of conditions. These include, among others, immediate engagement by the Check Board of Directors, completion of satisfactory due diligence, obtaining satisfactory financing arrangements, entering a satisfactory purchase and sale agreement, filing and completion of all regulatory matters related to our non-binding proposal and approval of Check shareholders. Symetryx may require additional conditions to complete our non-binding proposal that we will determine in our sole discretion. We urge the Check Board to enter a non-disclosure agreement with Symetryx and allow us to commence due diligence as soon as possible. We may withdraw our non-binding proposal at any time without notice. We believe that our non-binding proposal might create substantial value for the shareholders of Check.”