Aclarion rejects Echo Lake Capital's $4 per share acquisition offer

Aclarion Inc. (NASDAQ: ACON, ACONW) announced that its board of directors unanimously rejected an unsolicited acquisition proposal from Echo Lake Capital and its principal, Ephraim Fields.

The healthcare technology company's board determined that Echo Lake's $4.00 per share offer significantly undervalues the company and does not reflect the range of opportunities available to create shareholder value. Aclarion develops biomarker and artificial intelligence technology to help physicians identify chronic low back pain locations.

According to the company's statement, the board concluded that the proposed transaction structure would disproportionately benefit Echo Lake at other shareholders' expense. The board said the offer would effectively use Aclarion's balance sheet cash to finance Echo Lake's acquisition, allowing the acquirer to obtain the company's cash at a substantial discount while acquiring the Nociscan business and other assets without paying meaningful consideration.

Aclarion's primary product, Nociscan, is a software-as-a-service platform that uses magnetic resonance spectroscopy data and proprietary algorithms to help physicians distinguish between painful and non-painful discs in the lumbar spine. The technology processes MRS data from MRI machines through cloud-based signal processing to extract chemical biomarkers associated with disc pain.

The company stated its board remains committed to pursuing value creation opportunities and will consider proposals that appropriately reflect the company's intrinsic value and long-term potential. Goodwin Procter LLP is serving as legal counsel for Aclarion.

The information is based on a press release statement from Aclarion.

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