ProPhase Labs(US:PRPH) Globenewswire·2026-01-05 10:00Core Viewpoint - ProPhase Labs, Inc. is addressing recent stock price volatility attributed to technical factors, including convertible debt conversion and a reverse stock split, while emphasizing the stability of its underlying asset value [2][3][5]. Group 1: Stock Price Volatility - The company believes that recent stock price fluctuations are due to short-term technical factors, such as the conversion and resale of convertible debt and the transition from Nasdaq to the OTC market [2]. - Over $3.3 million of the $3.8 million convertible debt has been converted, leading to a reduction in company debt and an increase in shareholders' equity [3]. - The remaining unconverted balance of convertible debt is less than $500,000, and recent conversions occurred at a price of approximately $0.76 per share, which is above the current trading price [4]. Group 2: Financial Health and Asset Value - The conversion of debt has increased the number of outstanding shares but has also reduced liabilities, thereby strengthening the company's balance sheet [5]. - The intrinsic value of ProPhase Labs' assets remains unchanged despite the capital structure changes, with significant underlying value in its operating subsidiaries and assets [5]. - The company is focused on stabilizing its capital structure and advancing core business operations, indicating that recent trading volatility does not reflect changes in long-term strategy or growth prospects [5]. Group 3: Company Overview - ProPhase Labs is a biotech and consumer products company focused on innovative healthcare solutions, including Whole Genome Sequencing and diagnostic tests [7]. - The company aims to revolutionize healthcare and is committed to executional excellence and smart diversification [7].