GREATLY CONCERNED THAT NO VALUE IS BEING ASSIGNED TO THE INTELLECTUAL PROPERTY HELD BY CHECK-CAP AND ITS 54 PATENTS ARE GIVEN NO VALUE IN THE TRANSACTION
Haifa, Israel--(Newsfile Corp. - December 5, 2023) - Yoav Kimchy, PhD, founder of Check-Cap Ltd., former Chief Technology Officer and shareholder, today issued the following letter to his fellow shareholders urging they vote AGAINST the Keystone Dental merger, and FOR Symetryx's highly qualified director nominees at the December 18, 2023, Annual General Meeting. The full text of Mr. Kimchy's letter appears below:
December 4, 2024
Dear Fellow Check-Cap Shareholders;
My name is Yoav Kimchy. I founded Check-Cap in 2005 and until very recently served as its Chief Technology Officer. To this day I remain a shareholder of the Company. I am writing to you today because of my concerns over the Keystone Dental transaction and the behavior of the current Board of Directors.
Check-Cap, through its team of talented engineers and scientists, developed a breakthrough patient-friendly technology, C-Scan, using an ingestible capsule to help prevent colorectal cancer by detecting polyps before they may turn into cancer. I still own shares of Check-Cap; I never sold a single share, as I truly believed in the purpose and mission of the company to prevent cancer and serve patients fighting this terrible disease. I believe in the technology and in the company's financial potential. C-Scan received European regulatory clearance in 2018 and received FDA Breakthrough Device Designation in 2021. I am concerned that the current Board seems to assign no value to this valuable asset.
Over the years, Check-Cap has been granted fifty-four (54) patents in several jurisdictions including the USA, Europe, Japan, China, and elsewhere. This Intellectual Property (IP), as well as software, algorithms and hardware that were developed over the years relates to the C-Scan colorectal cancer screening capsule, as well as other clinical applications. I fear these additional applications that have great commercial potential that will not be realized with the upcoming Keystone Dental company merger. Again, I find it unbelievable that the current Check-Cap Board and executive management have attributed no value to the existing IP that the shareholders have spent millions to develop. Worse still, if by some miracle the IP is advanced under a newly combined company (should the Keystone merger go through) the current Check-Cap shareholders will see only a small fraction of its value as we will own only fifteen percent (15%) of the combined company.
On June 6th the company's operations were shut down before the start of a statistically powered FDA trial. This is while ignoring any possible clinical application pivots, known as plan B. Over 70 employees were summarily terminated. The decision was made by the Company's Board of Directors (BOD) and the CEO, without any internal discussions with other members of the management team. I was among those blind-sided by this action.
I now understand from their public filings that Check-Cap started looking for merger candidates in May 2023. This was not discussed with senior management prior to firing the employees. A large portion of the value to shareholders lies within unmaterialized IP generated over the years. I strongly recommend that we vote AGAINST the Keystone Dental merger vote FOR the Symetryx Board of Directors nominees and not support the current Check-Cap Board members up for re-election. I believe that a fresh approach is needed, and this is the only way to maximize value for all shareholders.
I welcome shareholders to please contact me for more information.
Sincerely,
Yoav Kimchy Ph.D.
Founder and former Chief Technology Officer of Check-Cap
yoavkim@gmail.com
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