Wizcom Decides for Comprehensive Reorganization
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Wizcom Technologies Ltd. /
Wizcom Decides for Comprehensive Reorganization
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The issuer is solely responsible for the content of this announcement.
Board assumes responsibility for operations and strategy
Company focuses on profitable operations to carry organization to the launch of
its new product line
Rosh Ha'ayin, December 12(th), 2011 - The Board of Directors of Wizcom
Technologies Ltd. (Prime Standard: WZM, IL 0010830706) today decided for
comprehensive changes to the Company's Management and Organization. The Company
is in the process of executing its turnaround strategy, which is to culminate in
the launch of a new line of innovative products. Wizcom announced in its
earnings release of November 30, 2011, that the Company is operating under cash
stress. Despite considerable progress with the turnaround program, CEO Mr.
Shimon Amouyal has decided to take responsibility for the cash flow situation
and has resigned his position, effective as of December 15, 2011.
Gideon-Ben Zvi, Chairman of the Board of Directors, stated, "We have great
respect for Shimon and for what he has achieved since he took the helm at Wizcom
in 2009, however, the current cash flow situation is such that if we want to
complete our turnaround and protect our ongoing operations, we have to take
drastic measures. It is in this light that we accept Shimon's resignation but
we have requested he stays on as consultant to the new CEO."
"The measures we have decided on are comprehensive and are implemented
immediately, and serve to generate the cash flow required to complete the
development of the new product lines in a timely manner. In order to achieve
these goals, the Board has taken the following steps:
(i) The employment of the CFO, Mr. Yaron Herz has been terminated.
(ii) The Company has taken austerity measures, terminating the employment
contracts and consulting agreements of all persons not directly involved in R&D
and the continuing commercial operations of the Company.
(iii) The Board has taken over the active management of the Company. To that
end, Mr. Tiran Fartouk has joined the Board and has been nominated as acting
CEO, effective as of December 15, 2011. Mr. Eldad Halevy joined as observer to
the Board and special consultant to the chairman.
(iv) The board will be involved in all aspects of day to day management of the
Company, until such time that the new products, to be launched towards the
middle of 2012, have gained sufficient traction in the market to support an
expanded organizational structure.
(v) The Company intends to immediately raise additional funds, with the
amount and structure of the financing to be determined by the Board in
accordance with the Company's requirements.
Mr. Ben-Zvi continued, "Our projections show that the new organizational
structure, which focuses on profitable operations, should assist us in achieving
our goal of a successful launch of our new product lines. Apart from a minor
stipend for Mr. Fartouk to cover certain expenses, no payments are made to the
Board members who are taking an interim executive role with the Company. Other
than as investors ourselves, we have no additional interest in the Company and
no conflicts of interest."
"Our belief in the innovative nature of the new product lines is very strong and
we anticipate that upon timely launch, Wizcom will be able to achieve growth and
become profitable. This is why we decided to assist the Company when we rejoined
in 2009 and this is why we feel taking control is the right thing to do. With
our new products, we will have a much more compelling offer to a number of
specific, large and growing markets, which we believe will enable us to leverage
our IP in a successful commercial manner."
Mr. Fartouk is a highly regarded investment banker who is responsible for many
successful transactions in the Israeli market and has also wide experience in
the operating management of companies and served for 12 years as an Officer in
one of the most prestigious units in the IDF. Mr. Eldad Halevy is CEO and one
of the main shareholders of Second Opinion International, a leading company in
the field of add-on services to the international insurance industry, and a
former shareholder of SHR Group - a leading assistance company in Israel. Both,
Mr. Fartouk and Mr. Halevy participated in the last financing rounds of the
Company.
Mr. Shlomi Drori has resigned from the Company's Board as his other obligations
do not allow him to dedicate the time and effort required to serve as External
Director. The Board recommends appointing Dr. Ido Shechter in his place and will
request his appointment to be approved at the next general meeting of
shareholders.
Mr. Ben-Zvi concluded, "Implementing such a comprehensive restructuring process
is painful for many of the parties involved. We have much respect for those who
have shown such dedication to the Company for many years, however, going forward
our actions must be guided completely by the overriding objective of bringing
the company to profitability. This is obviously not a walk in the park, but we
wouldn't have entered this challenge, if we didn't believe we can make it. We
are optimistic to achieve our goals with the initiated measures."
About Wizcom Group:
Wizcom Technologies Ltd. is the world's leading producer of personal, portable
scanning pens that help people read and process text. These pocket-sized, user-
friendly devices enable people to understand and use printed material, anytime
and anywhere, without disrupting their reading process. Our pens help students
of English as a first or second language, as well as people working in
multilingual environments, enhancing their fluency and expediting reading
comprehension.
For further information, please contact:
SCHWARZ Financial Communication
Frank Schwarz
Investor Relations
Telefon +49-611-1745-398-11
Schwarz(at)schwarzfinancial.com
Press Release as PDF:
http://hugin.info/130210/R/1570722/488459.pdf
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Source: Wizcom Technologies Ltd. via Thomson Reuters ONE
[HUG#1570722]
Unternehmensinformation / Kurzprofil:
Datum: 12.12.2011 - 17:36 Uhr
Sprache: Deutsch
News-ID 96085
Anzahl Zeichen: 7585
contact information:
Town:
Rosh Ha'ayin
Kategorie:
Business News
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