- Stock trades significantly below its net cash per share

- Questions the Board's ability and/or desire to create shareholder value

- Notes tremendous destruction of shareholder value under company's leadership

- Sees no reason for company to remain public

NEW YORK, NY / ACCESSWIRE / March 4, 2024 / On February 27, 2024, Ephraim Fields of Echo Lake Capital filed a Schedule 13D which included a letter to the Board of Directors of Neurometrix, Inc. (NASDAQ:NURO). The letter described his belief that the company should immediately liquidate because its stock price is trading significantly below net cash and because Mr. Fields sees no reason why the company should remain public. Among other things, the letter also questioned the Board's decision to issue stock at prices below net cash and its desire to create shareholder value.

A full copy of the letter can be found below:

CONTACT:
Ephraim Fields
[email protected]

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February 27, 2024

To the Board Of Directors:

As of December 31, 2023, NeuroMetrix had approximately $18.0 million of net cash and approximately 1.5 million shares outstanding, which equates to approximately $12.00 of net cash per share. Despite having all this net cash, plus assets that have some value and no significant liabilities, NURO's stock trades at only $3.50 per share or at a 70% discount to its net cash.

We believe the stock's dramatic undervaluation is largely attributable to the perception that you are not acting in the best interests of shareholders. Your incentives do not appear to be aligned with those of all shareholders because you personally own very few shares (despite your many years of service at the company and the generous compensation you have received).

We believe investors' concerns about your motivations have been recently heightened because:

1. You continue to permit NURO to issue shares via an ATM offering even though the stock is trading at a massive discount to its net cash and the company appears overcapitalized, not undercapitalized. We wonder why you think it is smart to issue equity at these prices?

2. You initiated a strategic review process to "promote growth and maximize shareholder value." To be clear, we have never, ever, seen such a dual mandate review process like the one you have initiated. We believe your primary fiduciary responsibility is to maximize shareholder (which can be accomplished in many ways including growing the company, shrinking the company or liquidating the company). Therefore, we are surprised that the review process is not limited to only maximizing shareholder value and that it also includes a mandate to "promote growth" (which may actually destroy shareholder value).