On August 19, 2019 Spherix Incorporated, (NASDAQ: SPEX) a technology development company committed to the fostering of innovative ideas, today issued a letter to shareholders (Press release, Spherix, AUG 19, 2019, View Source [SID1234538988])
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Dear Shareholder,
In advance of our Special Meeting on September 5th, I write to update you on certain developments and to encourage you to vote in favor of the proposals recommended by the Board of Directors and set forth in the Special Meeting Proxy.
The acquisition of the CBM BioPharma, Inc. ("CBM") pharmaceutical assets is an integral step in building Spherix into a cutting edge pharmaceutical company. It also builds upon the success we have already realized as a part of the Company’s transformation. Two years ago, Spherix made an investment in Hoth Therapeutics, Inc., which is now estimated to be worth over $10,000,000. In our effort to deliver value to our shareholders and to continue the transformation at Spherix, the Board intends to propose a special dividend of One Hundred Thousand shares (100,000) of Hoth stock. Effectuating the dividend is contingent upon obtaining the necessary votes for the CBM acquisition at the Special Meeting to be held on September 5th. The dividend will be paid upon the consummation of the transaction with CBM to shareholders of record prior to the date of such consummation. Upon closing the acquisition of the CBM assets, the Company expects to focus its efforts on growing and developing its portfolio.
The proposed Hoth dividend represents over $500,000 of value at today’s stock price. Should Spherix not receive the necessary votes to acquire the CBM assets on September 5th, it is unlikely that the Hoth dividend will be declared. The Company would instead retain this stock to use as a valuable resource for other corporate and strategic matters.
There are three ways to vote your shares of Spherix, each only taking a few moments:
By Telephone – Stockholders in the United States can submit their vote by calling the toll-free number indicated on the Special Proxy you received by mail; please have your control number located on the enclosed vote instruction form available when calling;
By Internet – Stockholders can submit their vote via internet at www.proxyvote.com; please have the control number located on the enclosed vote instruction form available; or
By Mail – Stockholders can vote by mail by signing, dating and returning the enclosed vote instruction form in the postage-paid envelope provided.
If you need any assistance in voting your shares or have questions regarding the special meeting of stockholders, please contact Spherix’s proxy solicitor, MacKenzie Partners, Inc., at (800) 322-2885 (toll-free) or (212) 929-5500 (collect), or email at [email protected].
I thank you for your continued support and investment in our Company. We believe with conviction that we are taking the right steps to drive shareholder value, make sound investment decisions, and return capital to shareholders when appropriate.
Sincerely,
Anthony Hayes