<SEC-DOCUMENT>0001193125-25-210012.txt : 20250922
<SEC-HEADER>0001193125-25-210012.hdr.sgml : 20250922
<ACCEPTANCE-DATETIME>20250922072905
ACCESSION NUMBER:		0001193125-25-210012
CONFORMED SUBMISSION TYPE:	PX14A6G
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20250922
DATE AS OF CHANGE:		20250922
EFFECTIVENESS DATE:		20250922

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			STAAR SURGICAL CO
		CENTRAL INDEX KEY:			0000718937
		STANDARD INDUSTRIAL CLASSIFICATION:	OPHTHALMIC GOODS [3851]
		ORGANIZATION NAME:           	08 Industrial Applications and Services
		EIN:				953797439
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1227

	FILING VALUES:
		FORM TYPE:		PX14A6G
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-11634
		FILM NUMBER:		251328409

	BUSINESS ADDRESS:	
		STREET 1:		1911 WALKER AVE
		CITY:			MONROVIA
		STATE:			CA
		ZIP:			91016
		BUSINESS PHONE:		6263037902

	MAIL ADDRESS:	
		STREET 1:		1911 WALKER AVE
		CITY:			MONROVIA
		STATE:			CA
		ZIP:			91016

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	STAAR SURGICAL COMPANY
		DATE OF NAME CHANGE:	19920703

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Yunqi Capital Ltd
		CENTRAL INDEX KEY:			0001912273
		ORGANIZATION NAME:           	
		EIN:				000000000
		STATE OF INCORPORATION:			K3
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		PX14A6G

	BUSINESS ADDRESS:	
		STREET 1:		UNIT 3703, 37/F, AIA TOWER
		STREET 2:		183 ELECTRIC ROAD, NORTH POINT
		CITY:			HONG KONG
		STATE:			K3
		ZIP:			000000
		BUSINESS PHONE:		852 37933457

	MAIL ADDRESS:	
		STREET 1:		UNIT 3703, 37/F, AIA TOWER
		STREET 2:		183 ELECTRIC ROAD, NORTH POINT
		CITY:			HONG KONG
		STATE:			K3
		ZIP:			000000
</SEC-HEADER>
<DOCUMENT>
<TYPE>PX14A6G
<SEQUENCE>1
<FILENAME>d35190dpx14a6g.htm
<DESCRIPTION>PX14A6G
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<HTML><HEAD>
<TITLE>PX14A6G</TITLE>
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<Center><DIV STYLE="width:8.5in" align="left">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>UNITED STATES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>SECURITIES AND EXCHANGE COMMISSION </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Washington, D.C. 20549 </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center><DIV STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</DIV></center>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>NOTICE OF EXEMPT SOLICITATION </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Submitted Pursuant to Rule <FONT STYLE="white-space:nowrap">14a-6(g)</FONT> </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(Amendment No. _) </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center><DIV STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</DIV></center>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">1.</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Name of the Registrant: </P></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">STAAR SURGICAL CO </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">2.</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Name of Person Relying on Exemption: </P></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Yunqi Capital Limited </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">3.</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Address of Person Relying on Exemption: </P></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Unit 3703, 37/F, AIA Tower, 183 Electric Road, North Point, Hong Kong </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>

<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">4.</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Written Materials. The following written material is attached hereto: </P></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Press release, dated September 22, 2025, attached hereto as Exhibit 1. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>* * * </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Written material is submitted
voluntarily pursuant to Rule <FONT STYLE="white-space:nowrap">14a-6(g)(1)</FONT> promulgated under the Securities Exchange Act of 1934, as amended. This is not a solicitation of authority to vote any proxy. Yunqi Capital Limited (&#8220;Yunqi
Capital&#8221;) is not asking for your proxy card and will not accept proxy cards if sent. The cost of this filing is being borne entirely by Yunqi Capital and its affiliates. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>PLEASE NOTE: Yunqi Capital is not asking for your proxy card and cannot accept your proxy card. Please DO NOT send us your proxy card. </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><I>(Written material follows on next page) </I></P>
</DIV></Center>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 1 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Yunqi Capital, 5.1% Holder and One of STAAR Surgical Company&#8217;s Largest Shareholders, Announces Intention to Vote Against the Proposed
Sale to Alcon </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><I>Issues Open Letter to Shareholders Outlining Its Belief that the Proposed Merger Materially Undervalues STAAR </I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><I>Contends that STAAR&#8217;s Board Failed In Its Responsibilities by Not Running a Thorough Process and Relying on Undue Skepticism about the
Company&#8217;s Prospects </I></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><I>Shareholders Deserve Fair Value for the Company </I></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">HONG KONG, September&nbsp;22, 2025 &#8211; Yunqi Capital Limited (together with its affiliates and the funds it advises, &#8220;Yunqi Capital&#8221;), an
investment management firm and 5.1% shareholder of STAAR Surgical Company (&#8220;STAAR&#8221;)&nbsp;(NASDAQ:STAA), today announced its opposition to the Company&#8217;s proposed sale to Alcon Inc. (SIX/NYSE:ALC) on the terms announced on
August&nbsp;5, 2025. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Yunqi Capital released the following open letter to fellow STAAR shareholders explaining why it opposes the transaction: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">September&nbsp;22, 2025 </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Dear Fellow STAAR Surgical
Shareholders: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Yunqi Capital Limited (together with its affiliates, &#8220;Yunqi Capital&#8221; or &#8220;we&#8221;) is an investment management firm that
has been a committed investor in, and staunch advocate of, STAAR Surgical Company (&#8220;STAA&#8221; or the &#8220;Company&#8221;) since 2023. We have engaged consistently with the Company since the outset of our investment, in particular with
respect to the Company&#8217;s strong business prospects in the Chinese market which accounts for a significant portion of the Company&#8217;s sales. Our investment in STAAR has grown over time, consistent with our belief in the Company&#8217;s
growth strategy, management team and market opportunities. Today, we beneficially own 2,500,061 shares of STAAR&#8217;s common stock, representing approximately 5.1% of the Company, making us the Company&#8217;s approximately sixth largest
shareholder. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We invested in STAAR because we believe strongly in the Company&#8217;s ability to create substantial value as the leading manufacturer of
phakic implantable lenses used worldwide in corrective (or &#8220;refractive&#8221;) surgery. We are confident in the Company&#8217;s ability to drive sustained growth as it positions its refractive lenses throughout the world as primary and premium
solutions for patients seeking visual freedom from wearing eyeglasses or contact lenses while achieving excellent visual acuity through refractive vision correction. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Given STAAR&#8217;s momentum and bright future, we believe the $28 per share offer price significantly undervalues our Company. We are disappointed that
STAAR&#8217;s Board of Directors (&#8220;Board&#8221;) has agreed to sell our Company to Alcon Inc. (SIX/NYSE:ALC) (&#8220;Alcon&#8221;) at this inadequate valuation and on the terms of the definitive merger agreement dated August&nbsp;4, 2025 (the
&#8220;Merger Agreement&#8221;, and such proposed transaction, the &#8220;Proposed Merger&#8221;). </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">To be clear, we would not necessarily be opposed to a potential merger of these two parties at an
appropriate price or on other appropriate terms. As long-term investors, we want the best for the Company and all its shareholders. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">However, based on our
analysis, the proposed sale at the current proposed terms materially undervalues the Company and does not reflect the Company&#8217;s intrinsic value and its standalone prospects were it not to be acquired by Alcon. In our view, the transaction
unfairly transfers this value to Alcon without rewarding STAAR&#8217;s shareholders for investing in and supporting the Company. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We are, of course, aware
of the campaign being launched by Broadwood Partners, L.P. and its affiliates (&#8220;Broadwood Partners&#8221;), a 27.4% stockholder, to solicit proxies against the Company&#8217;s proposal to approve the Proposed Merger, and we agree with the
clear and detailed rationale that has been included in its communications to STAAR shareholders. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We also submit to the STAAR shareholders our own
perspectives on the Proposed Merger: </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>STAAR&#8217;s Board Failed to Undertake a Thorough Process to Maximize Value as It Explored Strategic
Alternatives </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">First, like Broadwood Partners, we believe a deficient process was conducted in relation to the Proposed Merger. We believe the Board
chose to engage meaningfully only with Alcon as the sole counterparty, rather than conducting a sufficient market check or thoroughly soliciting potential interest from a range of alternative buyers and potential strategic partners. Further, the
terms of the Merger Agreement materially impede the Company&#8217;s ability to actively attract other potential bids, with the agreement&#8217;s lack of a &#8220;go shop&#8221; provision, the extent of termination fees payable by the Company under
the agreement, and the short &#8220;window-shop&#8221; period provided 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 &#8212; further minimizing the opportunity for the Company to receive or otherwise consider any successful alternative bids. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>The Board&#8217;s Decision Is Based on an Unduly Bleak View of Company&#8217;s Business Prospects in China </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Second, we disagree with the Board&#8217;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&amp;P 500 index <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">year-to-date</FONT></FONT> and over the past 12 months. Many indices in the Chinese equity
universe are among the best performing indices in the world <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">year-to-date.</FONT></FONT> </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Of note, the Company itself previously expressed optimism regarding China&#8217;s macroeconomic climate outlook in its Quarterly Report on Form <FONT
STYLE="white-space:nowrap">10-Q</FONT> for the period ended June&nbsp;27, 2025, filed with the U.S. Securities and Exchange Commission on August&nbsp;6, 2025. The Company noted that &#8220;The level of inventory owned by our distributors in China
has decreased substantially since December&nbsp;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.&#8221; </P>
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<Center><DIV STYLE="width:8.5in" align="left">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Furthermore, the Company&#8217;s largest customer in China, a publicly listed medical institution, recently
reported at the Goldman Sachs&#8217; 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&#8217;s largest Chinese
customer bodes well for the prospects of STAAR, which manufactures phakic implantable lenses used worldwide in corrective (or &#8220;refractive&#8221;) 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. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>The Proposed Consideration to Shareholders Significantly Undervalues the Company </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Third, the Proposed Merger significantly undervalues the Company and gives Alcon the ability to capture that upside without paying a meaningful premium. For
the past year, the Company&#8217;s stock has traded below its intrinsic value, in our view, because of transitory issues with inventory in China, which is in the course of being resolved. In support of that view, the Company&#8217;s second quarter
financial results and Quarterly Report on Form <FONT STYLE="white-space:nowrap">10-Q&#8212;released</FONT> just a day after the Proposed Merger was announced&#8212;reflected a decline of the inventory challenges the Company faced in 2024 and early
2025. The Company also reported a significant reduction in its expenses and has significant cost efficiency potential to be further implemented without material revenue impact. This suggests, in our view, that the Company is well on its way to
returning to substantial profitability. Further, while the Board touts that the Proposed Merger price of $28 per share represents a premium of approximately 59% and 51% to the <FONT STYLE="white-space:nowrap">90-day</FONT> volume weighted average
price and closing price, respectively, of the Company&#8217;s common stock at the time the Merger Agreement was announced on August&nbsp;4, 2025, the Board has failed to note that the offer price of $28 per share represents a discount of
approximately 26% to the <FONT STYLE="white-space:nowrap">52-week</FONT> high price at the time the Merger Agreement was announced on August&nbsp;4, 2025 and approximately a 49% discount to Alcon&#8217;s original offer price of $55 per share in cash
in October 2024. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">In conclusion, while we are not necessarily opposed to supporting an acquisition of STAAR by a third party, including Alcon, at an
appropriate price or on other appropriate terms, we remain open to a range of potential outcomes, including continued ownership of STAAR as an independent company for the foreseeable future. We believe STAAR&#8217;s superior and proprietary
technology, as well as its global scale, position the Company to take a significant portion of the fast-growing refractive surgery market, become an even more profitable enterprise and, ultimately, deliver upon its vision to be the first choice for
surgeons and patients seeking visual freedom from glasses and contact lenses. In our view, there is no compelling reason to sell STAAR at this underwhelming price. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Unless the terms are revised to address what we believe to be inadequate consideration, we intend to vote against the Proposed Merger and will urge our fellow
shareholders to do the same. We do not believe this transaction should receive shareholder approval. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Sincerely, </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Christopher Min Fang Wang </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Chief Investment Officer </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Yunqi Capital Limited </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>About Yunqi Capital </U></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Yunqi Capital is a Hong Kong headquartered investment manager with over US$250&nbsp;million in assets under management. The firm deploys a fundamental
long-short equity strategy, with a concentrated portfolio, that is primarily invested in the equity securities of companies with a significant China connection. Yunqi Capital is led by CIO Chris Wang, an experienced portfolio manager with a strong
track record of generating attractive returns on capital, controlling portfolio risk and managing investment teams. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Media contact </U></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">FGS Global </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Yunqi@fgsglobal.com </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Disclaimers </U></B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">THIS IS NOT A SOLICITATION OF
AUTHORITY TO VOTE YOUR PROXY. DO NOT SEND US YOUR PROXY CARD OR OTHER VOTING INSTRUCTION FORM.&nbsp;YUNQI CAPITAL&nbsp;IS NOT ASKING FOR YOUR PROXY AND WILL NOT ACCEPT PROXY CARDS IF SENT.&nbsp;YUNQI CAPITAL&nbsp;IS NOT ABLE TO VOTE YOUR PROXY, NOR
DOES THIS COMMUNICATION CONTEMPLATE SUCH AN EVENT. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">This press release does not constitute an offer to sell or a solicitation of an offer to buy any of
the securities described herein in any state to any person. This press release does not recommend the purchase or sale of a security. There is no assurance or guarantee with respect to the prices at which any securities of the Company will trade,
and such securities may not trade at prices that may be implied herein. In addition, this press release and the discussions and opinions herein are for general information only, and are not intended to provide investment advice. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The information contained or referenced herein is for information purposes only in order to provide the views of Yunqi Capital and the matters which Yunqi
Capital believes to be of concern to stockholders described herein. The information is not tailored to specific investment objectives, the financial situations, suitability, or particular need of any specific person(s) who may receive the
information, and should not be taken as advice in considering the merits of any investment decision. The views expressed herein represent the views and opinions of Yunqi Capital, whose opinions may change at any time and which are based on analyses
of Yunqi Capital and its advisors. In addition, the information contained herein is being publicly disclosed without prejudice and shall not be construed to prejudice any of Yunqi Capital&#8217;s rights, demands, grounds and/or remedies under any
contract and/or law. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">This press release contains forward-looking statements. Forward-looking statements are statements that are
not historical facts and may include projections and estimates and their underlying assumptions, statements regarding plans, objectives, intentions and expectations with respect to future financial results, events, operations, services, product
development and potential, and statements regarding future performance. Forward-looking statements are generally identified by the words &#8220;expects&#8221;, &#8220;anticipates&#8221;, &#8220;believes&#8221;, &#8220;in our view&#8221;, &#8220;from
our perspective&#8221;, &#8220;intends&#8221;, &#8220;estimates&#8221;, &#8220;plans&#8221;, &#8220;will be&#8221;, &#8220;would&#8221; and similar expressions. Although Yunqi Capital believes that the expectations reflected in forward-looking
statements contained herein are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties&#8212;many of which are difficult to predict and are generally beyond the control of
Yunqi Capital or the Company&#8212;that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. In addition, the foregoing considerations
and any other publicly stated risks and uncertainties should be read in conjunction with the risks and cautionary statements discussed or identified in the Company&#8217;s public filings with the U.S. Securities and Exchange Commission, including
those listed under &#8220;Risk Factors&#8221; in annual reports on Form <FONT STYLE="white-space:nowrap">10-K</FONT> and quarterly reports on Form <FONT STYLE="white-space:nowrap">10-Q</FONT> and those related to the pending transaction involving
the Company. The forward-looking statements speak only as of the date hereof and, other than as required by applicable law, Yunqi Capital does not undertake any obligation to update or revise any forward-looking information or statements. Certain
information included in this material is based on data obtained from sources considered to be reliable. Any analyses provided to assist the recipient of this material in evaluating the matters described herein may be based on subjective assessments
and assumptions and may use one among alternative methodologies that produce different results. Accordingly, any analyses should not be viewed as factual and should not be relied upon as an accurate prediction of future results. All figures are
unaudited estimates and, unless required by law, are subject to revision without notice.</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Funds and investment vehicles (collectively, the &#8220;Yunqi
Funds&#8221;) managed or advised by Yunqi Capital currently beneficially own shares of the Company. The Yunqi Funds are in the business of trading (i.e., buying and selling) securities and intend to continue trading in the securities of the Company.
You should assume the Yunqi Funds will from time to time sell all or a portion of their holdings of the Company in open market transactions or otherwise, buy additional shares (in open market or privately negotiated transactions or otherwise), or
trade in options, puts, calls, swaps or other derivative instruments relating to such shares. Consequently, Yunqi Capital&#8217;s beneficial ownership of shares of, and/or economic interest in, the Company may vary over time depending on various
factors, with or without regard to Yunqi Capital&#8217;s views of the pending transaction or the Company&#8217;s business, prospects, or valuations (including the market price of the Company shares), including, without limitation, other investment
opportunities available to Yunqi Capital, concentration of positions in the portfolios managed by Yunqi Capital, conditions in the securities markets, and general economic and industry conditions. Without limiting the generality of the foregoing, in
the event of a change in the Company&#8217;s share price on or following the date hereof, the Yunqi Funds may buy additional shares or sell all or a portion of their holdings of the Company (including, in each case, by trading in options, puts,
calls, swaps, or other derivative instruments). Yunqi Capital also reserves the right to change the opinions expressed herein and its intentions with respect to its investments in the Company, and to take any actions with respect to its investments
in the Company as it may deem appropriate, and disclaims any obligation to notify the market or any other party of any such changes or actions, except as required by law. </P>
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