Chembio Diagnostics, Inc.

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Ademi LLP is investigating Chembio (NASDAQ: CEMI) for possible breaches of fiduciary duty and other violations of law in its transaction with Biosynex.

Chembio’s shareholders are expected to receive only $0.45 per share, in an all-cash transaction valued at $17.2 million. The transaction agreement unreasonably limits competing bids for Chembio by imposing a significant penalty if Chembio accepts a superior bid. Chembio insiders will receive substantial benefits as part of change of control arrangements.

We are investigating the conduct of Chembio’s board of directors, and whether they are (i) fulfilling their fiduciary duties to all shareholders, and (ii) obtaining a fair and reasonable price for Chembio.