Madryn Asset Management Reiterates Alternative Path to SomaLogic’s Value-Destructive Proposed Merger with Standard BioTools
22 Diciembre 2023 - 7:00PM
Business Wire
Preliminary Review of ISS Report, Which
Recommends “Cautionary Support” for the Proposed Merger, Indicates
It Contains Factually Inaccurate Information and Does Not Align
with Prior Contested Transaction Recommendations
Urges Shareholders to Vote “AGAINST” the Proposed Merger with Standard
BioTools
Madryn Asset Management, LP (“Madryn Asset Management” and,
collectively with its affiliates, “Madryn” or “we”), a holder of
approximately 4.2% of the outstanding common stock of SomaLogic,
Inc. (“SomaLogic” or the “Company”) (Nasdaq: SLGC), today
reiterated its view that there is a viable alternative to the
proposed merger (the “Proposed Merger”) with Standard BioTools Inc.
(Nasdaq: LAB). Madryn issued the following statement:
It is our view that SomaLogic’s considerable cash position and
near-term commercial opportunities mitigate the need for the
Company to enter into a value-destructive combination that we
believe is the result of a flawed and highly conflicted process.
Now that SomaLogic’s Board of Directors (the “Board”) has learned
of the growing shareholder opposition to the Proposed Merger, it
should consider the future if the deal is terminated. Madryn
believes the following steps can be the foundation for a much
brighter future for SomaLogic and its shareholders:
- Resolve Litigation and Shareholder Disputes –
Terminating the Proposed Merger will pave the way to resolving
costly, distracting and time-consuming conflicts, including
litigation brought by the Company’s founder and Chief Technology
Officer. We suspect that a termination of the Proposed Merger will
facilitate a global resolution to these ongoing issues.
- Refresh the Board in a Methodical Way – We remain open
to working collaboratively with the Board to initiate a timely
refresh to replace three legacy directors with three highly
qualified individuals designated and endorsed by shareholders.
Through their recent actions, several members of the incumbent
Board have lost our trust and should recognize the need to engage
amicably and directly on necessary changes.
- Install a Commercially Focused Management Team – Along
with a refreshed Board, the Company needs to install a permanent
Chief Executive Officer and permanent Chief Financial Officer, each
with experience leading successful life sciences companies.
Long-term investors, such as Madryn, can leverage their own
industry networks to suggest candidates that can be included in the
Board’s search process (which we expect would involve retaining a
leading independent search firm as well as considering Interim CEO
Adam Taich).
- Implement Operational Enhancements – Based on the
Company’s updates, SomaLogic continues to make commercial progress
ahead of its distributed kit pilot with Illumina, Inc.1 (Nasdaq:
ILMN). Additionally, the Company has implemented several cost
savings initiatives.2 New management must continue to focus on
these two fronts to drive long-term shareholder value.
- Consider Strategic Alternatives on an Appropriate
Timeline – Once the steps detailed above are underway, we
believe that the Company will be in a stronger position to obtain
full and fair value via a future transformative transaction. A
refreshed Board and a Transaction Committee composed of truly
independent, non-conflicted directors – including individuals who
bring shareholder perspectives – will be properly equipped to
evaluate any and all potential alternatives for the Company to
maximize value.
Additionally, we note that Institutional Shareholder Services,
Inc. (“ISS”) has issued a seemingly flawed report that recommended
“cautionary support” for the Proposed Merger. Based upon a
preliminary review, we believe that the ISS report contains
inaccurate information and omissions, and that it is inconsistent
with past recommendations. We intend to issue a communication in
the near-term that lays these issues out.
We remain committed to helping SomaLogic pursue a better path
forward and stand willing to engage with the Board to reach a
superior outcome that is in the best interests of all
shareholders.
Voting “AGAINST” the Proposed Merger Will Protect the
Value of Shareholders’ Investment and Allow SomaLogic to Pursue
Vastly Superior Alternatives
Visit www.NoSomaLogicMerger.com
for Additional Information
About Madryn Asset Management
Madryn Asset Management is a leading alternative asset
management firm that invests in innovative healthcare companies
specializing in unique and transformative products, technologies
and services. The firm draws on its extensive and diverse
experience spanning the investment management and healthcare
industries and employs an independent research process based on
original insights to target attractive economic opportunities that
deliver strong risk-adjusted and absolute returns for its limited
partners while creating long-term value in support of its portfolio
companies.
IMPORTANT ADDITIONAL INFORMATION
Madryn Asset Management, Madryn Health Partners, LP, Madryn
Health Partners (Cayman Master), LP, Madryn Health Advisors, LP,
Madryn Health Advisors GP, LLC, Madryn Select Opportunities, LP,
Madryn Select Advisors, LP, Madryn Select Advisors GP, LLC and
Avinash Amin (collectively, the “Participants”) are participants in
the solicitation of proxies from the stockholders of SomaLogic in
connection with the special meeting of stockholders (the “Special
Meeting”). On December 18, 2023, the Participants filed with the
U.S. Securities and Exchange Commission (the “SEC”) their
definitive proxy statement and accompanying GREEN Proxy Card
in connection with their solicitation of proxies from the
stockholders of SomaLogic for the Special Meeting. MADRYN
STRONGLY ADVISES ALL STOCKHOLDERS OF SOMALOGIC TO READ THE
DEFINITIVE PROXY STATEMENT, THE ACCOMPANYING GREEN PROXY CARD AND OTHER DOCUMENTS RELATED TO
THE SOLICITATION OF PROXIES BY THE PARTICIPANTS, AS THEY WILL
CONTAIN IMPORTANT INFORMATION, INCLUDING ADDITIONAL INFORMATION
RELATED TO THE PARTICIPANTS AND THEIR DIRECT OR INDIRECT INTERESTS
IN SOMALOGIC, BY SECURITY HOLDINGS OR OTHERWISE. The definitive
proxy statement and an accompanying GREEN Proxy Card will be
furnished to some or all SomaLogic stockholders and is, along with
other relevant documents, publicly available at no charge on the
SEC’s website at http://www.sec.gov/. In addition, the Participants
will provide copies of the definitive proxy statement without
charge upon request. Requests for copies should be directed to
Madryn Asset Management.
Disclaimer
This material does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities described
herein in any state to any person. In addition, the discussions and
opinions in this press release are for general information only,
and are not intended to provide investment advice. All statements
contained in this release that are not clearly historical in nature
or that necessarily depend on future events are “forward-looking
statements,” which are not guarantees of future performance or
results, and the words “anticipate,” “believe,” “expect,”
“potential,” “could,” “opportunity,” “estimate,” and similar
expressions are generally intended to identify forward-looking
statements. The projected results and statements contained in this
press release that are not historical facts are based on current
expectations, speak only as of the date of this press release and
involve risks that may cause the actual results to be materially
different. Certain information included in this material is based
on data obtained from sources considered to be reliable. No
representation is made with respect to the accuracy or completeness
of such data, and any analyses provided to assist the recipient of
this presentation in evaluating the matters described herein may be
based on subjective assessments and assumptions and may use one
among alternative methodologies that produce different results.
Accordingly, any analyses should also not be viewed as factual and
also should not be relied upon as an accurate prediction of future
results. All figures are unaudited estimates and subject to
revision without notice. Madryn disclaims any obligation to update
the information herein and reserves the right to change any of its
opinions expressed herein at any time as it deems appropriate. Past
performance is not indicative of future results.
_________________________ 1 Company filings and transcripts. 2
Company filings and transcripts.
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version on businesswire.com: https://www.businesswire.com/news/home/20231222463165/en/
John Ferguson / Joseph Mills Saratoga Proxy Consulting,
212-257-1311 info@saratogaproxy.com
Joe Germani / Ashley Areopagita Longacre Square Partners,
646-386-0091 Madryn@LongacreSquare.com
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