Precipio issued a letter to its shareholders, which read in part, "We are all aware of the recent pricing pressure on Precipio's stock. To this end, we would like to provide an update of both our business activities and to reiterate investor communication practices. First, we would like to address the business activities surrounding our new products, IV-Cell and HemeScreen. Both products address critical, costly and lengthy diagnostic pathology challenges for cancer testing on a world-wide basis. Simply put, these products solve major clinical, operational, and cost issues that have existed for decades. Both IV-Cell and HemeScreen are proprietary to Precipio and have patents pending. As the products we make are critical to diagnosing cancer, incorporating them into a manufacturing process or into the customer's laboratory work flow is a careful and precise process that requires in depth testing and validation, in order to ensure that accurate results are reached - as it should be. Introducing these products by large companies we are working with, always takes longer than we hope for; often times smaller companies like us use our own rapid process as a proxy, and subsequently we underestimated the length of time to complete formal independent third-party validation studies and customer in-house reviews. With regard to the IV-Cell progress - as recently announced, we've identified the manufacturer for IV-Cell. As some of you correctly pointed out, "Why would we need such a manufacturer if we didn't anticipate large contracts?" This is a correct assumption and we are working with several customers both domestically and internationally to trial, validate and bring on board the media. As mentioned above, this is not a simple process, but once concluded we will be sure to inform the market. These validation studies are projected to be complete by late Q3, and, be converted into orders and subsequent revenues. While the delay is extremely disappointing, we can report that all outside testing results received so far have successfully replicated our internal data. As we progress and continue to achieve material milestones, we will issue additional investor communications...Second, we would like to reiterate our prior announcements, that there are no plans to execute an equity raise. The company's cash reserves, combined with the September 2018 equity line are projected to provide sufficient operating runway to grow our pathology business, complete external product validation studies and successfully market IV-Cell and HemeScreen to our targeted customers. Our goal is to continue to make strides towards cash flow positive there the company no longer needs to rely on outside capital sources to fund its operations. We believe that with our new suite of products such as IV-Cell and HemeScreen, generating good revenue and gross margin, this is achievable and within sight."
