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Open Letter to the Shareholders of Therapix

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07/13/2020 | 07:25am EDT

Tel Aviv, Israel, July 13, 2020 (GLOBE NEWSWIRE) --

Dear Fellow Shareholders,

As a concerned shareholder and specifically in light of the Company’s continued poor performance and its delisting from Nasdaq, we took the time to carefully review recent statements made by Therapix’s management, including in its latest annual report on Form 20-F as well as the notice for its upcoming special general meeting of the shareholders.

We were struck, and frankly insulted, by the audacity of the statements made by the Company’s management. How is it that they can allegedly represent and pursue the best interests of the Company and its shareholders, while at the same time seek (through numerous proposals in the upcoming shareholders meeting) to preserve their positions and maximize their individual wealth – all at the expense of the Company?

We believe it is important for each of you, as shareholders of the Company, to understand the chronology of events leading up to the Company’s current lackluster position. These events are emblematic of a Company run by individuals that are indifferent to the consequences of mismanagement. I believe once you are acquainted with the facts, you too will feel that aggressive action is in order, and that if left undone, the Company, and our investments therein, will become even more worthless.

Therapix's management claims that they have qualified individuals running the Company. According to the 20-F, issued by the Company, apart from Company’s management, there are only two employees of the Company. We do not think it is farfetched to claim that there’s a connection between the Company’s poor performance and the lack of employee personnel. How can a company possibly achieve better results, and thereby provide greater value to its shareholders, if the Company has close to no employees outside of its senior management? It is appalling that the Company’s management is asking for its shareholders to vote in favor of resolutions increasing the salaries of its highest paid officers, including a monthly salary of approximately US$ 23,000 for its CEO and US$ 19,000 for its CFO, when no such sum is devoted to the recruitment of talent or a related business target that might benefit the Company.

We want to emphasize that the slate of directors we have nominated includes well experienced and industry-seasoned individuals – specifically in turning neglected companies around – and each nominee comes equipped with financial and managerial skills applied both in the public and private arenas. The managerial philosophy implemented by Therapix, by and through the alleged entrepreneurs running the Company, has not proven itself as a productive approach. Our nominees offer a different path forward; a path that will be paved by industry professionals that have proven they understand the intricacies of running and financing a successful company.

In our letter, we, Pure Capital, detailed previous actions that we believe have been harmful to the Company and its shareholders. These actions, taken by Therapix, have not been in the best interest of the Company nor its shareholders. These actions include, but are not limited to:

Therapix’s management now aims to approve increased salaries and insulate its control over the Company by way of a staggered board of directors. The only way to reconcile these proposals with the Company’s ongoing collapse is to consider that Therapix’s management believes its shareholders do not care about the future of the Company. We implore you to prove management wrong and to at long last usher in new leadership and a new direction for the Company altogether.  

We urge you to act now and vote “FOR” the approval of replacing the current management.

We urge you to vote
AGAINST proposals 1, 4, 5, 6 and 7
FOR proposals 2 (reappointment of the Company's auditor),
3 (increase of authorized share capital) and 8 (Pure Capital's proposal)

 L.I.A. Pure Capital Ltd.


Michal Efraty

© GlobeNewswire 2020
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