Edited July 30, 2023
On June 16, 2023, SQI Diagnostics (SQI), a leader in the science of lung testing, announced that it planned to voluntarily file for bankruptcy. Upon the legal action being filed the shares of the publicly traded SQI Diagnostics that are held by more than 1,000 shareholders would have become worthless. Michael Markowski, an analyst who had recommended the shares of SQI interceded to prevent the bankruptcy from being filed. SQI Diagnostics’ stock symbols:
In his March 30, 2023 ShinyPennyStocks.com “Timing is FINALLY Right for SQI Diagnostics’ Shares” research report Michael Markowski recommended SQIDF shares at a limit price of $0.05. His rationale for the recommendation was because:
- SQI had submitted several lung testing products to the US. FDA and Canada’s Health Canada regulatory bodies. Regulatory approval for some of the products was granted in 2022. SQI anticipates that a majority of all of the testing products including its TorDX donor lung testing product will be approved by regulators by the end of 2024.
- SQI’s share price was 90% below its all-time high.
SQI’s proprietary products, upon approval, could potentially value SQI for a billion, equivalent to a share price of $2.00 or above. Because SQI had a diversified portfolio of change-the-world respiratory products and had other intangibles Mr. Markowski stated “SQI has the best risk reward ratio of any stock that I have ever recommended throughout my 46-year career” in his March 2023 research report.
After SQI made its bankruptcy announcement, Michael questioned as to why the company’s Board of Directors (BOD) would make such a rash decision. He contacted the secured creditor, which had sent the foreclosure notice to SQI. The notice had prompted SQI’s decision to voluntarily seek bankruptcy protection.
Michael Markowski was surprised to learn that the foreclosing creditor was willing to convert the debt owed by SQI into an equity stake in the company. Since the creditor was not the catalyst for SQI’s decision to file for bankruptcy he analyzed the public company’s Financial Statements and disclosures. Mr. Markowski discovered that the majority of SQI’s Board of Directors (BOD) were also secured creditors. This meant, that in the event of a bankruptcy, the members of the BOD who were secured creditors would continue to have a stake in SQI’s products and intellectual property.
Armed with this information, Mr. Markowski began his battle to STOP SQI from filing for bankruptcy. Michael produced a 6/19/23 memo in support of why the bankruptcy should not be filed. He informed the members of SQI’s BOD that they were self-serving and not acting in the best interests of the company’s minority shareholders. He cited the conflicts that necessitated a restructuring of SQI’s BOD. Michael demanded that the conflicted secured lender/directors resign and that his three BOD nominees be elected to SQI’s BOD:
- Dr.David Weill, former Director of the Center for Advanced Lung Disease and Lung and Heart-Lung Transplant Program at Stanford University Medical Center
- David Markowski, former CFO of a publicly traded company and registered investment advisor
- Deborah Markowski, registered investment advisor
In a 6/22/23 follow-up email to the directors Michael Markowski said:
“The bottom line is that SQI Diagnostics will be the cherry on top of the cake when my career ends one way or another.
- Biggest stock ever
- I will become the most well-known shareholder advocate ever. The “Ralph Nader” for investors.
If SQI files for bankruptcy, I will have no choice but to lead the effort for the behalf of all of the shareholders to vigorously pursuit all of the existing board members. This will enable me to protect and to increase the value of my brand. Articles have been written about me by every major financial publication throughout my career and Fortune Magazine named me as one of their top 50 investors.
I guarantee you that lawsuits will be filed against each of the Board members. Since SQI Diagnostics Inc. has done nothing wrong there will be no need for a class action lawsuit.
To fund the lawsuits articles will be published about the despicable things that the SQI Board members did and how they did nothing to protect SQI’s common shareholders. My award-winning reporter contact at the Wall Street Journal will love this story. SQI will become the poster child for why Directors should not be self-serving”.
Video below is a clip from Michael Markowski’s weekly “Markowski on the Market” Saturday 6/24/23 session. It’s about the ultimatum that he gave to the SQI Directors.
On 6/23/23 SQI’s Board of directors relented. The bankruptcy for SQI was not filed and SQI agreed to restructure its Board of directors. Mr. Markowski’s director nominees would be elected and would constitute the majority for the SQI Board of Directors. At July 7, 2023, the details to incorporate the changes were in the process of being worked out.
Video below is a clip from Michael Markowski’s weekly “Markowski on the Market” Saturday 7/01/23 session. It’s about the potential price target for SQIDF shares after the SQI-will-not-seek to-file-for-bankruptcy announcement is made.
Video below is a 7/8/23 update on SQI Diagnostics during “Markowski on the Market” weekly Saturday 11:00AM session.
Video below is video clip of update on SQI during 07/22/23 “Markowski on the Market” Saturday morning 11:00AM session:
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