DOYLESTOWN, Pa. — ProPhase Labs on Monday announced that it rejected an unsolicited, nonbinding proposal from Matrixx Initiatives to acquire the company for $1.40 per share in cash, subject to further due diligence by Matrixx.
ProPhase stock was up 20 cents to $1.39 in mid-afternoon trading.
Matrixx is the owner of the Zicam brand of cold and allergy products and is a direct competitor to ProPhase's Cold-Eeze Cold Remedy product line.
On Sept. 4, Matrixx purchased for $200,000 a three-year option to acquire almost 1.5 million of the company's common stock for $1.40 per share from Guy Quigley, ProPhase's former chairman and CEO when the company was still known as Quigley's. Matrixx also acquired from Quigley a voting proxy to vote the shares subject to the option.
"It remains our view that by investing in our Cold-Eeze brand, we are building our distribution platform and pipeline, which has led to securing increased shelf space with our retailers for the upcoming cold season, and which has provided us with the opportunity to introduce new and improved products, including the national launch of Cold-Eeze Oral Spray and Cold-Eeze Daytime/Nighttime QuickMelts for the upcoming cold season," ProPhase chairman and CEO Ted Karkus said.