Shirley Family Office Sends Letter to PLx Pharma (PLXP) Board of Directors

Asks Board to Terminate Massively Dilutive Convertible Preferred
Stock Financing and to Conduct a Properly Marketed Capital Raise

Intends to Vote AGAINST the Proposed CPS Financing

CPS Financing Values PLXP at less than $15 Million versus Upside
Potential over $1 Billion

LOS ANGELES–(BUSINESS WIRE)–The Shirley Family Office, which owns more than 3% of PLx Pharma Inc.
(“PLXP”) common shares, sent a letter to the Board of Directors that
criticizes the recently proposed convertible preferred stock financing
(the “CPS Financing”) as massively dilutive, asks the Board to terminate
the CPS Financing and conduct a properly marketed capital raise, and
indicates its intent to vote AGAINST the CPS Financing, which requires
shareholder approval.

The letter asserts that given the size, dilution, discounted conversion
strike price, and low implied valuation of the CPS Financing, the Board
should have structured the financing as a rights offering open to ALL
SHAREHOLDERS on a pro rata basis, rather than allow a single shareholder
to massively dilute all the rest.

The letter further asserts that the massively dilutive CPS Financing –
struck at only $2.60 per share, or a 50% discount to the current share
price, and indicating a nominal enterprise valuation of less than $15
million – reflects almost none of the potential upside highlighted in
PLXP’s public filings. These filings suggest that PLXP has developed a
revolutionary drug delivery platform and that management expects its
Vazalore aspirin products to become the new standard of care for
cardiovascular aspirin treatment, with an estimated total addressable
market of $10 billion in the United States alone. Management comments at
a recent presentation suggest a planned mid-2020 product launch and a
potential company valuation well over $1 billion if market share targets
are achieved.

Contacts

Andrew Shirley
Shirley Family Office
310-454-9813
[email protected]

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