Concerned Stockholders Urge Cue Health to Address Urgent Concerns

A group of concerned stockholders, including Kelly Day, who collectively own 7.5% of Cue Health, Inc., have sent a letter to the board of directors outlining their urgent concerns for the company. Cue Health, a diagnostics company that developed lab-quality tests for home and point-of-care use, gained recognition when its COVID-19 test received Emergency Use Authorization from the FDA in June 2020.

However, the concerned stockholders believe that the board and management team have taken an undisciplined approach by expanding the company’s business into areas where it lacks expertise, competing with well-established competitors. This expansion has led to a significant increase in expenditures while post-COVID revenues have plummeted. The stockholders express alarm over the company’s quarterly cash burn, which they believe could jeopardize its future or lead to dilutive financing.

The concerned stockholders emphasize the need for immediate action to stabilize the company, reduce cash burn, and refocus on Cue Health’s core diagnostic business. They believe that the company’s core technology and diagnostic platform hold the greatest value creation potential and should receive the full attention and resources of the board and management team.

Additionally, the stockholders express concerns about the management’s unwarranted optimism regarding the company’s future clinical prospects, which they believe has disregarded fiscal prudence. They also question the board’s supervision of management and suggest the need for greater representation of direct stockholder voices to ensure independent decision-making.

Kelly Day, the founder of Cue Health, urges the board to consider the concerns of long-term stockholders and take immediate action to prevent the company from veering off course.

The stockholders are prepared to meet with the independent members of the board to further discuss their views as soon as possible.

Source: [Business Wire](https://www.businesswire.com/news/home/20231006310458/en/)