Company: STAA
Filing Date: 2025-09-29
Form Type: DFAN14A
Source: 0001213900-25-093211
Chunk: 21

Company: STAAR SURGICAL CO
Filing Date: 2025-09-29
Form: DFAN14A
Chunk 21
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 profitable company.

Unfortunately, after reviewing the preliminary
merger proxy statement that STAAR filed last Friday, and in particular the history of negotiations that was disclosed in the preliminary
proxy, Broadwood believes the transaction suffers from multiple process and valuation deficiencies. Further, Broadwood has been disappointed
in the choices that STAAR’s Board of Directors has made under the influence of its current advisers. These choices include not only the
choice to sell the company without pursuing an adequate sale process, but also intransigence with respect to the process regarding Broadwood’s
books and records demand. This demand has not resulted in the production of any documents despite the passage of 24 days since the demand
was made.

The Background
of the Merger in the preliminary proxy discloses multiple important facts. First, Alcon previously offered $55.00 per share and a
$7.00 contingent value right for STAAR in October 2024 — a price far above the current offer. Alcon subsequently withdrew its
offer shortly before STAAR reported that it faced inventory management challenges. However, those challenges have now been
addressed, and STAAR has improved its cost discipline, providing a path to a sharp rebound in its revenue and profits in coming
quarters. Broadwood is concerned that stockholders are now being asked to accept inferior terms despite the fact that the challenges
that followed Alcon’s initial bid have been substantially resolved.

Second, the
preliminary proxy indicates that there was no meaningful market check. The proxy acknowledges that two additional parties —
Party A and Party B — expressed interest in a potential transaction. However, neither was provided sufficient time to submit a
proposal, and neither STAAR nor its advisers conducted any formal outreach to solicit interest from other potential bidders. Based
on its ongoing discussions with multiple strategic and financial parties, Broadwood believes that far better value-creating
alternatives than the Alcon acquisition offer would have been available to the STAAR Board and STAAR’s shareholders if a
proper sale process had been pursued. Such alternatives could have included an acquisition of STAAR at a higher value, or a sale of
part of STAAR at a high value, or other alternatives.

Third, STAAR’s second quarter results,
which were not released until after the merger agreement was executed and announced, reflected the progress by STAAR in reducing its cost
structure and resolving the temporary challenges that resulted in the sharp decline in its stock price in late 2024 and early 2025. Broadwood