Special Committee of FONAR Board of Directors Announces Receipt of Supplemental "Take Private" Proposal

Core Viewpoint - FONAR Corporation has received a supplemental proposal from a Proposed Acquisition Group led by Timothy Damadian, aiming to acquire all outstanding shares not currently owned by them at a price of $17.25 per share, representing a 27% premium over the average closing price for the 90 trading days ending June 30, 2025 [1]. Group 1: Acquisition Proposal - The Special Committee of FONAR's Board of Directors was formed to review the acquisition interest expressed by the Proposed Acquisition Group [2]. - The proposed acquisition price of $17.25 per share indicates a significant premium, suggesting the group is serious about pursuing the transaction [1]. - The Special Committee will consult with independent financial and legal advisors to determine the best course of action for FONAR and its shareholders [2]. Group 2: Company Background - FONAR, established in 1978, is recognized as the inventor of MR Scanning and is the oldest MRI company in the industry [5]. - The company is known for its FONAR UPRIGHT® Multi-Position™ MRI, which allows for imaging in various weight-bearing positions, providing advantages over traditional lie-down MRI scanners [7]. - FONAR's primary source of income is its subsidiary, Health Management Company of America (HMCA) [9]. Group 3: Technological Innovations - FONAR is developing new technology to visualize and quantify cerebrospinal fluid (CSF) dynamics, which could benefit patients with neck injuries [8]. - The company holds numerous patents related to its MRI technology, including those for full weight-bearing imaging [10].