Aclarion, Inc., ("Aclarion" or the "Company") (NASDAQ:ACON, ACONW)), a commercial-stage healthcare technology company that is leveraging biomarkers and proprietary augmented intelligence (AI) algorithms to help physicians identify the location of chronic low back pain, today issued the following statement in response to a recent communication issued by Echo Lake Capital and its principal, Ephraim Fields.
Aclarion's Board of Directors carefully reviewed Echo Lake's unsolicited public proposal and unanimously determined to reject it. The Board believes that the proposal significantly undervalues the Company and its strategic potential. The Board further determined that the proposal does not appropriately reflect the range of opportunities it believes are available to create value for all shareholders.
The Board also determined that the structure of the proposal would disproportionately benefit Echo Lake at the expense of other shareholders. Echo Lake's proposal to acquire the Company at $4.00 per share would effectively have Aclarion's cash on the balance sheet finance Echo Lake's acquisition, allowing Echo Lake to acquire the Company's remaining cash at a substantial discount while also obtaining the Nociscan business and the Company's other valuable assets and attributes without paying meaningful and certain consideration for them.
Consistent with its fiduciary duties, the Board remains committed to pursuing credible paths to value creation and will remain open to any proposal or opportunity that appropriately reflects the Company's intrinsic value, strategic assets and long-term potential.