Company: STAA
Filing Date: 2025-09-24
Form Type: DFAN14A
Source: 0001213900-25-091197
Chunk: 28

Company: STAAR SURGICAL CO
Filing Date: 2025-09-24
Form: DFAN14A
Chunk 28
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 to the Company, after which the potential termination fee
for the Company is significantly increased. In addition, the Merger Agreement requires the Company to finalize and disseminate its proxy
materials to shareholders and to hold a shareholder meeting on a rapid timeline — further minimizing the opportunity for the Company
to receive or otherwise consider any successful alternative bids.

The Board’s Decision Is Based on an Unduly Bleak View of
Company’s Business Prospects in China

Second, we disagree with the Board’s bleak assessment of the
macroeconomic climate in China, which we believe contributed to its decision to agree to such a low offer price from Alcon. As a Hong
Kong-based fund with extensive investment experience in mainland China, we are intimately close to the latest economic developments in
China and are seeing green shoots across the economic spectrum. For instance, the Hang Seng TECH Index has substantially outperformed
the S&P 500 index year-to-date and over the past 12 months. Many indices in the Chinese equity universe are among the best performing
indices in the world year-to-date.

Of note, the Company itself previously expressed optimism
regarding China’s macroeconomic climate outlook in its Quarterly Report on Form 10-Q for the period ended June 27, 2025, filed
with the U.S. Securities and Exchange Commission on August 6, 2025. The Company noted that “The level of inventory owned by
our distributors in China has decreased substantially since December 27, 2024, and has now returned to historical levels. We expect
our China revenue will normalize in the second half of fiscal 2025, as our distributors increase their purchases of ICLs to meet
forecasted demand.”

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Furthermore, the Company’s largest
customer in China, a publicly listed medical institution, recently reported at the Goldman Sachs’ Asia Leaders Conference 2025
that it has maintained a 10% overall revenue growth target, with its revenue growth target for refractive surgery slightly higher.
Such growth for the Company’s largest Chinese customer bodes well for the prospects of STAAR, which manufactures phakic
implantable lenses used worldwide in corrective (or “refractive”) surgery. We are also optimistic about medium- and
long-term geopolitical and trade relations between the United States and China, which we believe will provide an additional support
to the macroeconomic climate in both countries and the business prospects of STAAR more particularly.

The Proposed Consideration to Share