ProPhase Labs Announces Definitive Agreement to Acquire CLIA Accredited Lab Certified for COVID-19 and Upper Respiratory Testing - Seite 2

Mr. Karkus added: “We spent six months evaluating the medical test lab business and searching for the right acquisition candidates to lead our entry into this industry. In Confucius Labs, we found the ideal opportunity for an East Coast based CLIA accredited lab for COVID-19 and other medical testing capabilities. Confucius Labs is a well-run lab that was founded and operated by Arvind Gurnani, an experienced entrepreneur in this space who also runs two similar labs.”

The acquisition is an all cash transaction valued at $2.5 million. The closing of the transaction is subject to customary closing conditions, which the parties expect will be completed in short order. Mr. Gurnani has agreed to provide transition services, including continued operational oversight of the lab. The current lab director, lab manager and all employees of the lab are expected to remain employed by the lab. “I look forward to working with ProPhase and assisting with the growth of their lab business as well as building a strategic relationship with the Company,” stated Mr. Gurnani.

Mr. Karkus concluded, “ProPhase Diagnostics will focus on diagnostic testing and processing. Given the planned ramp up of capacity with the purchase of the latest and most efficient equipment, we believe that we will be able to offer highly competitive pricing as well as 24-hour reporting of results as needed. In fact, for local businesses, we may even be able to provide same-day molecular lab testing results. We are also continuing our search for additional acquisition opportunities that will expand our testing capabilities, and we will seek out new sources of business for Confucius Labs and for any other diagnostics businesses we acquire.”

About ProPhase Labs

ProPhase Labs (NASDAQ: PRPH) is a manufacturing and marketing company with deep experience with OTC consumer healthcare products and dietary supplements. The Company is engaged in the research, development, manufacture, distribution, marketing and sale of OTC consumer healthcare products and dietary supplements in the United States. This includes the development and marketing of dietary supplements under the TK Supplements brand. The Company is also developing ProPhase Diagnostics, Inc. to offer COVID-19 and other Respiratory Pathogen Panel (RPP) testing services. For more information visit us at www.ProPhaseLabs.com.