Company: STAA
Filing Date: 2025-10-21
Form Type: PX14A6G
Source: 0001193125-25-244217
Chunk: 4

Company: STAAR SURGICAL CO
Filing Date: 2025-10-21
Form: PX14A6G
Chunk 4
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26, 2025, projects $160 million in China sales for 2026. Current trends suggest that figure may be conservative. We
believe that STAAR’s China revenue could realistically reach the $180–200 million level in 2026, accounting for combination of the Company’s
year-to-date China revenue of $142.6 million, an estimated $40 million run rate for the fourth quarter 2025, and on-the-ground demand growth of roughly 5%. The picture that emerges from the new release is one of renewed momentum and sustainable end-user demand, supporting our view
that STAAR’s long-term growth prospects – particularly in its largest market – remain intact and even understated by official guidance.

We would also note that STAAR’s October 20 press release fails to provide any details on the Company’s margins or profitability, which we
believe is material information that shareholders should have before the special meeting.

Having analyzed the Company’s announcement, we think it
is important to point out that there are minimal costs associated with the $25.6 million in consignment revenue, meaning that the vast majority of those revenues would flow directly into gross profits. As a result, we believe the
Company’s third quarter gross margins will be high.

We also believe the Company’s third quarter operating margins will benefit from the cost
reduction program that was started at the end of the first quarter. The third quarter will be the first “clean” quarter after the cost-cutting initiatives, and shareholders should be informed as to how operating margins are benefitting
from these actions. Strong operating margins would be another clear sign that STAAR can deliver sustained profitability in the future, and demonstrate that the Company is well-positioned to exceed its original 2026 EBITDA projection of
$98 million.

3

To ensure that shareholders are making an informed decision, the Company should not withhold material
information from shareholders and should disclose both the costs and profit margins of operating the business. Selectively disclosing information and cherry-picking data that supports management’s own agenda with respect to the merger proposal
does not instill the confidence that shareholders deserve as they vote on this proposed sale.

4. The Road Ahead Is Bright

We continue to believe that STAAR is well-positioned to thrive following the rejection of the merger. If the shareholders reject the deal, we expect the Board
to chart a constructive path forward, driving value for the shareholders. And we envision that the Company could, at the appropriate time and from a position of