Precipio settles lawsuit with Crede Capital
Precipio announced it has settled its lawsuit with Crede Capital Group, restructuring the final substantial liability of legacy payables inherited as part of the merger with Transgenomic in June 2017. These liabilities have been reduced from approximately $19M at the merger, to approximately $7M. As part of the settlement, Precipio will pay to Crede a total of $1.925M over a period of 15 months, with most payments payable at Precipio's option either in cash, stock, or as a combination of both. With this settlement, close to 95% of the $19M in legacy liabilities inherited as part of the merger with Transgenomic in June 2017 will have been settled. Prior to the merger, Transgenomic had in excess of $19M in legacy liabilities, which was owed to approximately 300 creditors. Because the merger was executed as a stock swap, the $19M of liabilities comprised the largest portion of the purchase price of Transgenomic, which was assumed by the surviving entity, Precipio. Following considerable negotiation, the predominance of the debt has been restructured with a remaining balance of approximately $7M, a substantial portion of which will be paid over the next four years.